Teachers Building Society has launched a “summer special” mortgage with a discounted variable rate of 1.25 per cent.
The deal, which is open only to teachers, represents a 3.74 percentage point discount on the lender’s standard variable rate, which currently stands at 4.99 per cent.
The associated fees of just under £1,000 include a £899 arrangement fee and a £99 application fee.
With a maximum loan-to-value of 60 per cent, it is open to both home purchase and remortgage applications.
Andy Yates, business development manager of Teachers Building Society, said the mortgage rate was “aimed at meeting the needs of a teachers looking to purchase or remortgage”, adding that newly-qualified teachers on one-year contracts, supply teachers and teachers on fixed term contracts could be eligible.
He added Teachers Building Society had other mortgages for non-teachers looking to buy in Dorset, Hampshire and Wiltshire.
Daniel Bailey, a mortgage broker at Middleton Finance, said the deal would “not be for everybody”, both because of the high LTV and because of the fact that most people in his experience were opting for fixed rate mortgages.
“It will be a niche product,” he said, adding the high LTV meant the mortgage may lend itself more to remortgaging than purchases.
james.fernyhough@ft.com
