Mansfield Building Society is launching a discount mortgage available only in the Derbyshire, Nottinghamshire and South Yorkshire.
The two-year rate features six-monthly discount steps and a free basic valuation. The initial discount from its standard variable rate is 4.00 per cent, reducing by 1.00 per cent every six months however borrowers will only benefit from the full discount if interest rates rise as the minimum rate payable, is 2.00 per cent, so the current SVR of 5.69 per cent will only be reduced by 3.69 per cent.
Residential buyers can borrow, between £25,001 and £250,000, up to a maximum loan to value of 95 per cent. A high LTV fee is charged for loans over 90 per cent. The product changes if an interest-only mortgage is applied for, limiting the LTV to 75 per cent, and requiring life cover.