Norwich and Peterborough Building Society has launched two new three year capped rate mortgages at 5.14 per cent and 5.29 per cent.
Both are capped until January 5th 2007 and have a maximum loan to value of 95 per cent. They have early redemption charges of 3 per cent until January 5th 2007. Minimum loan is £1,000 and maximum is £2m.
Group product manager Gary Lacey says: “The advantage of this type of mortgage is that the customer has all the benefits of a fixed rate loan with the added bonus that, if the Society's standard variable base rate falls below the capped level, the rate the customer pays will be reduced too.”