Packager Private Label is offering to fund automatic overpayments for the
first five years on its new flex-ible tracker mortgage.
Following research sho-wing that the majority of borrowers with flexible
mortgages do not make overpayments each month, Private Label has designed
its mortgage to perform this function for them free of charge.
Funded by the Halifax's specialist lending arm, Birmingham Midshires,
every month 0.25 per cent of the loan will be credited to the mortgage with
no increase in the borrower's payments.
Private Label claims this will reduce the total interest charge on a
typical mortgage by around £3,500 over the full term of the loan.
The interest rate stays at 0.74 per cent over the Bank of England base
rate for the first five years, after which it remains at 1 per cent over
the base rate for the rest of the term.
It is available up to 95 per cent loan to value with £300 cashback
and interest calculated daily. Intermediaries receive an introducer fee of
0.35 per cent of the loan.
Private Label director of marketing Tony Fisher says: “Freepay is a
cashback, tracker, daily interest mortgage that overpays itself and is a
new vision of flexibility in the UK mortgage market.”