The cheapest rate available is bank rate – 0.01 per cent, giving a current pay rate of 4.99 per cent. This deal has a 2.75 per cent arrangement fee.
Another option is bank rate + 0.74 per cent, which is a current rate of 5.74 per cent for a fee of 1.25 per cent.
Both of these deals are available for mortgages between £500,000 and £5,000,000 up to a maximum loan to value of 65 per cent.
John Charcol senior technical manager says: “Many borrowers will be coming off 5 year fixed rates of less than 4 per cent in the next few months, and many others will be coming to the end of 2 or 3 year fixed or tracker mortgages with rates well under 5 per cent.
“Switching to a new large loan fixed rate without paying a big fee will mean paying a rate close to 7 per cent. Even switching to a new tracker without paying a big fee will mean paying well over 6 per cent. These two deals are designed to accommodate borrowers who can not easily afford to pay (or can but don’t want to) the much higher rates which would be necessary without a big fee being used to subsidise the rate.
“They are available to those who want to borrow over £500,000 but particularly good value for those who need over £1million.”
Both mortgages are available for purchase and remortgage and the fee can be added to the loan. There are no early repayment charges.
For borrowers wanting a higher LTV John Charcol is also offering up to 75 per cent LTV with a slightly higher rate of bank rate + 0.84 per cent, which is a current pay rate of 5.84 per cent and a 1.25 per cent fee.