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Product matters

Cheshire proclaims that its new productrange is “ripe and ready” so is it really as juicy as they say or will it hold a rotten core?

First, the new range of two- and three-year discounts are going to be up against some hot competition. The two-year deal is available up to 80 per cent loan to value offering a 1.91 per cent discount (current pay rate of 3.74 per cent) without any redemption penalties beyond the discounted period.

The lack of an arrangement fee and free valuation makes the product worth considering, particularly for smaller mortgages. Unfortunately, above

80 per cent, the rate increases by 0.2 per cent to give a slightly less attractive rate of 3.94 per cent.

The three-year discount also weighs in with a 3.94 per cent

pay rate at 80 per cent LTV, again with no arrangement fee, free valuation and no extended redemption penalties. This is currently a market leader.

There is also a keen, completely fees-paid remortgage deal and a first-time-buyer stepped discount. Moving on to the fixed rates, nothing stands out, particularly in terms of rate but the 10-year fixes may well be of interest. They have taken a similar tack to Newcastle Building Society in that they allow a penalty-free window for red-emption each year after the first five years.

There are two flexible deals, one for standard residential lending and one for buy-to-let, both offering attractive rates and no penalties at any time. Overall, this is a very competitive product range, particularly for discounted and flexible deals.

David Hollingworth is a mortgage specialist at London & Country Mortgages

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