One of the lowest remortgage rates on the market at the moment, with the lowest fees, comes from one of the smallest building societies in the UK.
Penrith Building Society has a two-year discounted mortgage whereby you pay 1.95 per cent for two years as long as you have at least 70 per cent equity in your property. This means the amount you borrow is 70 per cent of the full value of your home.
Loan amounts range from £50,000 to £400,000 and the product fee is only £175 with an application fee of £75.
The discounted rate works by taking 2.2 per cent from the society’s standard variable rate (SVR), which is currently 4.15 per cent, one of the lowest in the market. This leaves you with an interest rate of 1.95 per cent to pay. After two years the rate reverts to the SVR or you can remortgage to another product.
If you have 75 per cent equity in your property, Penrith offers a two-year discount of 1.85 per cent off the SVR, meaning you pay an interest rate 2.3 per cent. You can borrow from £50,000 to £750,000 with this mortgage and the fees are £275 for the product and £75 for the application.
With both of these products the mortgage valuation fee is paid by the Penrith, as are the legal fees, as long as you use the society’s nominated solicitors.
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