The Principality Building Society has brought in the 5.45 per cent three-year fixed rate mortgage.
Aimed at first time buyers and remortgagers, the mortgage has a fixed rate of 5.45 per cent for the first three years for loans of up to 75 per cent of valuation. After the fixed rate period the mortgage reverts to the Principality's standard variable rate, which on April 23, 2001, was 6.7 per cent.
The mortgage has a redemption penalty of 2.5 per cent of the advance for the fixed rate period. There is also compulsory buildings & contents insurance and an administration fee of £299.
The Principality mortgage is not the most competitive three-year fixed rate mortgage on the market. According to Moneyfacts on April 23, 2001, this is the 5.25 per cent fixed rate mortgage from Exclusive Connections. It has a fixed rate of 5.25 per cent for the first three year of the mortgage for loans of up to 90 per cent of valuation. The Exclusive Connections product has redemption penalties of three months' interest for the fixed rate period, an administration fee of £295 and no compulsory insurances.
Based on a £100,000 mortgage, London & Country Mortgages says that monthly payments for the Principality 5.45 per cent mortgage would be £611.11 a month. The Exclusive Connections per cent mortgage, on the other hand, would require payments of £599.25 a month.