Scottish Life Mortgages has joined forces with Britannic Money to offer the Britannic Money twelve month discount mortgage.
Although Britannic Money has developed the mortgage, it will only be available through Scottish Life Mortgages. It has a discount of 2.5 per cent for the first year of the mortgage, giving it a payable rate of 4.99 per cent for loans of up to 75 per cent of valuation.
The twelve month mortgage discount is fully flexible, and offers overpayments, underpayments, lump sum withdrawal and payment holidays. Interest is calculated daily. There are no redemption penalties and legal fees are free for remortgages.
Looking at the one-year discount flexible mortgage market, the Scottish Life Mortgages product is the most competitive. According to Moneyfacts on April 27, 2001, the next cheapest one-year discounted flexible mortgage is the 0.75 per cent discount mortgage from The Mortgage Operation. This has a discount of 0.75 per cent, giving it a payable rate of 5.54 per cent for loans of up to 75 per cent of valuation. Like the Scottish Life Mortgages product it is fully flexible and has no redemption charges. However, The Mortgage Operation product has free accident, sickness and unemployment insurance for the first six months of the loan.