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Principality go for new discount

Principality Building Society has introduced the 1.4 per cent discount mortgage, aimed at first time buyers and people looking to remortgage. The mortgage has a discount of 1.4 per cent from the society’s standard variable rate, giving it a payable rate of 6.09 per cent for loans up to 75 per cent of valuation.

With income multiples of 3.5 times principal income plus second, this places it slightly higher than the industry norm of three times principal income plus second. It also has no extended redemption penalties.

Looking at how competitive the product is when compared to other discount mortgages, the Principality product does not offer the best discount rate. According to Moneyfacts the 5.89 per cent discount mortgage from Nottingham Building Society is the most competitive, with a discount of 1.6 per cent giving a payable rate of 5.89 per cent for loans up to 75 per cent of valuation.

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