Marsden Building Society has brought in the three-year fixed rate mortgage.
The mortgage has a fixed rate of 5.45 per cent until June 30, 2004 for loans of up to 80 per cent of valuation. Redemption penalties are 3 per cent in year one, 2 per cent in year two and 1 per cent in year three.
Marsden offers borrowers free accident, sickness and unemployment insurance for the first three months of the mortgage. The valuation fee will be refunded and people looking to remortgage will get any legal fees repaid if they use the Marsdens solicitors. The mortgage is only available in Wales and England.
According to Moneyfacts the most competitive three-year fixed rate mortgage is from Darlington Building Society. This is fixed at 5.24 per cent until June 30, 2004 for loans of up to 90 per cent of valuation, with redemption penalties of six months interest during the fixed rate period. Unlike the Marsden product the Darlington mortgage is not portable and comes with compulsory buildings and contents insurance.
Based on a £100,000 mortgage London & Country estimates that monthly premiums for the Marsden mortgage will come to £611.11. Payments for the Darlington mortgage will come to £605.57 a month.