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Second offer of Standard mortgage

Standard Life is offering a second tranche of its 25 year capped-rate Futureperfect mortgage which IFAs can sell before it is introduced to the public.

Standard Life Bank says the move is in response to the overwhelming demand from IFAs for the first tranche.

Futureperfect&#39s rate is capped at 6.49 per cent for the life of mortgage. It will be available from August 11.

Standard Life Bank first launched the US-style 25-year capped-rate mortgage in June.

Within two weeks, the bank sold more than £200m of funds to more than 2,500 homeowners.

The mortgage has a maximum loan to value of 90 per cent on loans of between £25,001 and £350,000. Interest is calculated on a daily basis. The loan is portable and there is a contribution of £200 towards legal fees.

IFAs get 0.32 per cent of the size of the loan.

Sales manager Alan Dring says: “This is the second chance for IFAs to provide homeowners with a lifetime cap on their mortgage payments. Many advisers used the extended term of the mortgage to undertake a comprehensive review of their long- term finances.”

Savills Private Finance managing director Mark Chilton says capped-rate mortgages are good news for borrowers. He says: “Even against the variable rate charged today by most mainstream lenders of 7.74 per cent, the annual savings would be over £1,200.”

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