Mortgage broker John Charcol has launched a two-year tracker currently charging just 3.99 per cent, designed for people looking for a loan of £200,000 or above.
The rate, which is pegged at 0.51 per cent below the base rate of interest, is the best rate available for any mortgage deal worth £200,000 or more.
Overall costs for comparison come to 6.4 per cent APR, and the deal has a maximum loan to value rate of 90 per cent.
“The larger the loan the more value this mortgage delivers and there is no limit to the maximum loan size,” said Ray Boulger of Charcol.
“This is the undisputed market-leading two year tracker for anyone wanting to borrow £200,000 or more and, of course, in today’s market, the number of people in this category is increasing by the day.
“The trade off for the very low pay rate is a relatively high arrangement fee of £1,499, which is why this mortgage is only suitable for larger loans,” he added.
Other drawbacks include an early repayment charge of five per cent any time within the loan term, a booking fee of £75 and daily interest charging.
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