Sesame and PMS has launched an exclusive five-year fixed rate mortgage to appointed representatives of its network and members of its mortgage club, via Leeds Building Society.
The 75 per cent loan-to-value product is priced at 2.19 per cent fixed for five years and includes a free standard valuation of up to £999 for customers for properties up to a value of £2m.
It has no up-front booking fee and a £599 arrangement fee, which is payable on completion.
Remortgage customers can get a fees assisted in-house legal service.
The deal also comes with 10 per cent penalty free capital over repayments each year, with applications made on a capital and interest repayment basis.
Rate (%) | LTV (%) | Free standard valuation | Fees assistedlegal for re-mortgages | Arrangement fee | Max loan |
2.19 | 75 | Yes | Yes | £599 | £500,000 |
Rob McCoy, senior product manager at Sesame Bankhall Group, said members have been reporting they have been sourcing more long-term deals of late.
“The five-year rate will appeal to borrowers looking for the security of fixing their mortgage repayments to a competitive rate, especially during this time of economic uncertainty,” he stated, adding: “The combination of the low rate, low arrangement fee and the fee incentives will make it a popular choice with our members.”
Lea Karasavvas, managing director at Prolific Mortgage Finance, said this product is in line with many other lenders longer term pricing strategy, but what makes it more competitive is the lower arrangement fee and the higher LTV bracket of 75 per cent, versus the 60 per cent with others.
“Demand is high right now on five-year fixed and longer term products, given the historic low of rates, concerns over property prices and economic uncertainty; so I would expect Leeds to get a lot of business of the back of this headliner,” he added.
peter.walker@ft.com
