Scarborough Building Society has designed a flexible base rate tracker mortgage that equals the Bank of England base rate for the first six months.
The mortgage is available on loans of up to 95 per cent of valuation. There are no arrangement fees and no redemption penalties for borrowers who redeem the mortgages.
Overpayments, underpayments and payment holidays are allowed. However, interest is calculated monthly rather than daily and borrowers cannot make lump sum withdrawals.
According to Moneyfacts on April 17, 2001, there are no exact comparisons for the Scarborough Building Society mortgage. The closest competitor is from the Yorkshire Building Society, which has an interest rate of 6.45 per cent and is guaranteed not to exceed the base rate by more than one per cent throughout the term. It also has free accident sickness and unemployment benefit for the first six months and no early redemption penalties.
In terms of interest rates, the Yorkshire Building Society's is higher than the Scarborough's for the first six months.
The Yorkshire Building Society mortgage allows underpayments, overpayments and payments holidays and interest is calculated daily, which is more competitive than monthly interest. However, the Yorkshire Building Society mortgage shares the Scarborough Building Society's lack of a lump sum withdrawal facility.