At the end of the fixed term, borrowers will switch to Egg’s standard variable rate, currently 6.79%, for the remainder of the mortgage. The overall cost for comparison is 6.7% APR. Customers can also choose to offset their savings against this new mortgage product.
The mortgage also comes with a free standard valuation and Egg has arranged a free legal package for re-mortgage customers with the aim of making switching to this product both convenient and low cost. The mortgage has an arrangement fee of GBP499 and is available for loans up to a maximum of 90% of the property value. There are no early repayment charges after the fixed rate period has ended.
In the new mortgage product, overpayments of up to 10% of the mortgage balance are allowed without an early repayment charge being due during the fixed rate period and all loans redeeming will incur an administration charge of GBP70. Meanwhile, the arrangement fee of GBP499 will be added to the mortgage, can be paid immediately after completion.
Stephen Bright, head of lending and insurance division at Egg, said: This mortgage is aimed at customers who want the security of knowing exactly how much their monthly payment will be, and get it fixed at a great rate. In today’s climate with increasing energy prices and economic uncertainty, people want to manage their finances more effectively and budget for the longer term.
