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Two-year tracker mortgage offered by Charcol

Date: Wed, 03 Nov 04 Analysis

Independent mortgage adviser Charcol is offering a new two-year base rate tracker for those looking to remortgage.

The deal, which offers borrowers a rate of 0.16 per cent below bank base rate (BBR) for two years, has a current pay rate of 4.59 per cent (5.9 per cent APR).

It is available up to 90 per cent loan to value (LTV) and reverts to BBR + 1.25 per cent for the remaining term.

Elliot Nathan, product development manager at Charcol mortgage, said: "This deal offers homeowners looking to remortgage a competitive discount of 0.16 per cent off Bank of England base rate for two years, and the added bonus of having no lender fee, a refund of valuation fee and free legals ensuring remortgage costs are kept to a minimum.

"For those who have been nervous about taking out a tracker deal, the real question they have to ask themselves is whether or not base rate has peaked.

"All the signs point to this being the case, or at worst there being only one more quarter point increase to come," the Charcol mortgage spokesman added.

"With several economists now predicting that base rate will start to fall by the end of next year, the likelihood of 4.75 per cent proving to be the peak for this cycle is increasing."

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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.