Marsden Building Society has brought in the three-year fixed rate mortgage.
Aimed at first time buyers and people looking to remortgage their homes, the mortgage has a fixed rate of 5.45 per cent for loans of up to 80 per cent of valuation for the first three years of the mortgage.
The mortgage has an arrangement fee of £295, with the valuation fee refunded on completion. It also comes with three months free payment protection assurance. Redemption penalties are 3 per cent of the advance in the first year, 2 per cent in the second year and 1 per cent in the third year.
According to Moneyfacts the most competitive three year fixed rate mortgage on the market on May 17, 2001 is from Darlington Building Society. This has a fixed rate of 5.24 per cent for loans of up to 90 per cent of valuation. It also has an arrangement fee of £100, with the valuation fee refunded on completion. The redemption penalty is six months interest during the fixed rate period. However unlike the Marsden Building Society product, the Darlington mortgage has compulsory building and contents insurance.
Based on a £100,000 mortgage for 90 per cent of valuation, London & Country Mortgages says that monthly payments for the Marsden mortgage would be £611.11 a month. The Darlington mortgage monthly payments would be £605.57.