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John Charcol

Type: Two-year tracker mortgage.

Description: An exclusive range of large loan two-year tracker deals has been issued by John Charcol. The cheapest deal offers a rate of 4.99 per cent - which is Bank of England base rate plus 0.01 percentage point - and carries a 2.75 per cent arrangement fee. This is available for a loan of between £500,000 and £5m t and has a maximum loan-to-value of 65 per cent. The fee may be added to the loan amount. An exclusive booking fee of £75 applies, as does an exit fee of £145.

Conditions: The real advantage of this range of products is that there are no early repayment charges, therefore unlimited overpayments are permitted without penalty. The deals are available for purchase and remortgage circumstances.

Contact: www.johncharcol.co.uk

Verdict: The tracker rate of 0.01 percentage point above Bank of England base rate is highly competitive, although the fee of 1.75 per cent of the loan amount is very high and, particularly for high net-worth clients with high loan amounts, is possibly the most expensive way to pay for the mortgage. It is, of course, up to the adviser to compare the equivalent cost of obtaining a higher rate but with a lower or fixed arrangement fee to calculate whether the low rate from Charcol warrants the higher fee ratio, but with the added benefit of no early repayment charges and a lender targeting such a competitive rate at higher net worth individuals, this product appears to be a welcome addition.

Rating: 3/5