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Scarborough flexes its tracker

Scarborough Building Society has brought in the flexible base rate tracker mortgage.

Flexible base rate tracker will mirror the movements of the Bank of England base rate for the first year of the mortgage, giving it a payable rate of 6 per cent. After this it will have a rate of 0.75 per cent above the base rate for the remainder of the mortgage term.

The mortgage is also flexible. Borrowers will be able to make underpayments, overpayments and take payment holidays. Interest is calculated monthly.

Having interest calculated monthly makes the mortgage less flexible than mortgages that calculate interest daily. Also,. the fact that the mortgage does not allow lump sum withdrawal makes this product less flexible. It is also not the most competitive mortgage available.

According to Moneyfacts the most competitive flexible base rate tracker mortgage on the market is the 4.95 per cent flexible mortgage from the Principality Building Society. This mortgage has a rate of 1.05 per cent below the Bank of England Base rate for the first year of the mortgage.

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