The new rate comes with a low product fee of GBP499, which can be added to the loan, and the facility to repay up to 10% of the loan balance per year without early repayment charge.
Richard Clark, head of product development and marketing at Scottish Widows Bank, said: Many people are coming to the end of cheaper short-term fixed rate deals, and affordability can become an issue when looking for a new deal. Although interest rates are expected to stabilize in 2008, demand for fixed rate deals is likely to remain strong as borrowers look to protect themselves against any future rate increases.
