This end date makes the fixed term not quite four years but longer than three years. The deal is available for loans up to 90 per cent of valuation to a £250,000 maximum. Capital repayments of up to 10 per cent a year are allowed but exceeding this will result in an early repayment charge.
The early repayment charge charges 4 per cent for the first few months following the July 2, 2012 completion deadline, then follows the more conventional pattern of reducing the charge by 1 per cent every calendar year from October 31. The deal also offers valuation and legal fee incentives.
Defaqto insight analyst for banking David Black points out that there are currently 282 fixed-rate mortgages with a maximum LTV of 90 per cent. Of these, 106 are available for remortgage, while 82 are for remortgage and purchase. Around 53 per cent of the remortgage only deals offer a valuation incentive and 52 per cent offer legal fee incentives. These figures drop to 39 per cent and 40 per cent respectively for deals that are available for both purchase and remortgage.
Black says: “As a generalisation, there tends to be little difference in interest rates charged for remortgages compared with purchase mortgages, but the former tend to be more generous in terms of valuation and legal fee incentives.
“Four-year fixed rate mortgages offering 90 per cent LTV are thin on the ground, with only six available. The National Counties offering is the pick of these by a distance, albeit its maturity date is just over four months shy of four years.”