The 18-month fixed rate mortgage from Pink Home Loans has a fixed rate of 3.45 per cent for the first 18 months for loans of up to 95 per cent of valuation.
The mortgage has an arrangement fee of £299, as well as a redemption penalty of 5 per cent of the advance for the first two years, falling to 4 per cent for years three and four and then 3 per cent for year five. Self-employed applicants must have three years of accounts and the mortgage is fully portable.
Mortgages that are fixed for 18 months are quite rare, Pink Home Loans offering three. The only other provider is Exclusive Connections, which offers a fixed rate mortgage with an interest rate set at 6 per cent for loans of up to 95 per cent of valuation.
According to Moneyfacts this latest Pink mortgage is the most competitive 18-month fixed rate mortgage on the market. The next most competitive mortgage is also from Pink Home Loans and has a fixed rate of 3.85 per cent until February 28, 2003 for loans of up to 95 per cent of valuation. After the fixed rate period it reverts to 1.75 per cent above the Bank of England base rate. It also has redemption penalties of 5 per cent in years one and two, 4 per cent in years three and four and 3 per cent in year five, as well as an arrangement fee of £299.