Bradford & Bingley offer cashback relief through new tracker mortgages |
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Thu, 26 May 2005 14:35
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Bradford & Bingley has introduced a new cashback tracker mortgage set to offer borrowers a total cashback of three percent.
Funded by the Coventry Building Society, the cashback tracker mortgage offers a competitive rate of 5.74%, and will follow Bank of England (BoE) base rate with 0.99% up to September 30, 2010. Thereafter, the loan will return to the variable rate of 6.53% which will stand valid for the rest of the term (6.5% APR).
According to the mortgage development manager at Bradford & Bingley, Duncan Pownall, their new product, the cashback tracker mortgage would be highly appreciated by homemovers as well as those considering a remortgage.
| He said, “The cashback element in particular offers a helping hand for first time movers, who may have benefited from the house price growth of recent years and now enjoy a healthy level of equity within their property, but are now faced with much larger moving costs. This product helps these people take a step up the property ladder where they may now have to pay stamp duty of 3%. This pull on the purse strings can be alleviated with the cashback, giving buyers a financial boost when they need it most.”
Pownall added that remortgagers would equally be pleased with the cashback option, especially those who intended to enhance their deal through remortgaging instead of a mere mortgage shift. He said that the cashback would assist those “who don’t wish to eat into any equity they have built up in their home but would like to raise capital to help fund a project, providing them with extra funding at a competitive rate without taking out a personal loan.”
These special mortgages were offered by Bradford and Bingley exclusively to aid and assist homebuyers while moving their houses. The cashback facility would offset the burden of huge moving costs as it aimed “to take the sting out of the associated costs when buying a home or indeed when improving your home by remortgaging, in particular remortgagers benefit from fixed legal costs. Overall this represents a very competitive 5 year cashback deal.”
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