Scottish Widows Bank yesterday (6 February) extended its offset remortgage product range and introduced a number of lowest ever fixed rates enhancing its professional and flexible ranges.
The lender is reducing selected flexible remortgage products, with a two-year fixed rate at 1.29 per at 60 per cent LTV and a 1.44 per cent at 75 per cent LTV, both with a £1,499 product fee.
Both products come with a fee-free remortgage package as part of the deal.
Martin Fleming, managing director of Scottish Widows Bank, said: “Boosting our offset remortgage range with new competitive options – including our lowest ever rate – helps demonstrate our commitment to supporting the growing number of borrrowers looking for a competitive and flexible remortgage deal.
“By continuing to support brokers with attractive fixed rate remortgage and product transfer options, they can help highlight the benefits for borrowers who can earn the same rate of interest on their savings as they pay on a mortgage.”
David Hollingworth, associate director of communications at L&C Mortgages, said the fixed rate market is ultra competitive as a number of lenders have sought to sharpen their rates to attract borrowers.
He said a cut in rate is an improvement but in a crowded marketplace, it is just as important to consider the additional benefit that offsetting can offer customers.
Mr Hollingworth said: “Reducing the margin between offset and traditional rates will only help broaden the range of borrower that these Scottish Widows Bank deals will be suited to.”
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emma.hughes@ft.com
