Private Label is launching a new cashback discount mortgage which will pay borrowers £1000 in December 1999 just in time for the millennium celebrations.
The discount rate is 6 per cent with 3 per cent cashback.
The packager says that the mortgage delivers a benefit of 9 per cent – 10 per cent if the MIG – on a £50,000 loan.
In order to avoid 'payment shock' the discount is spread at 2 per cent a year for the first three years at which point the variable rate mortgage is predicted to be much lower than today.
The cashback is also split paying out £520 on completion with a further £1000 in December 1999.
The discount and cashback options are available at 95 per cent LTV.