The latest addition to the flexible mortgage market comes from Stroud & Swindon Building Society.
The discount flexible 2006 mortgage has a discount of 0.25 per cent until July 1, 2006 for loans of up to 85 per cent of valuation. This gives it a payable rate of 5.99 per cent.
Stroud & Swindon will pay the valuation fee, as long as the property is not worth more than £400,000. It will also pay any legal fees if its own solicitors are used and there are no arrangement fees and redemption penalties.
The mortgages flexible features include underpayments, overpayments, payment holidays and lump sum withdrawals. Although many flexible mortgages offer daily interest, the Stroud & Swindon mortgage offers monthly interest.
There are very few five-year redemption penalty-free discount flexible mortgages on the market. According to Moneyfacts on 24th August 2001 the only other companies offering this type of mortgage are Norwich & Peterborough and Chelsea building societies.
However, both of these companies offer competing mortgages with better rates. The Norwich & Peterborough mortgage has a discount of 1 per cent for loans of up to 75 per cent of valuation, giving it a payable rate of 5.49 per cent. The Chelsea mortgage, which has a discount of 0.9 per cent for loans of up to 90 per cent, giving it a payable rate of 5.59 per cent. Both products are fully flexible.