Marsden Building Society is getting fixed with the introduction of the three-year fixed rate mortgage.
Fixed until July 31, 2001, the mortgage has a rate of 5.95 per cent for loans up to a maximum of 80 per cent. After the fixed rate period the mortgage reverts to the Marsdens standard variable rate. The mortgage is fully portable.
The mortgage has free legal fees if the Marsdens solicitors are used and comes with three months free mortgage payment protection insurance. The valuation fee is refunded on completion, but again only if the borrower uses the Marsdens valuers. There are redemption penalties of three per cent of the advance in year one, two per cent in year two and one per cent in year three.
According to Moneyfacts the most competitive three-year fixed rate mortgage is from Darlington Building Society. This has a fixed rate of 5.19 per cent until September 30, 2004 for loans up to a maximum of 90 per cent of valuation. Darlington also offers free valuation fees, but the redemption penalty is six months interest in the first three years. However, the Darlington product comes with compulsory buildings and contents insurance and is not portable.
Based on a £100,000 mortgage, London & Country Mortgages estimates that monthly payments for the Marsden mortgage would come to £641.25. The Darlington mortgage on the other hand would come to £602.58 a month.