The Royal Bank of Scotland has outlined the savings that home owners can make by taking advantage of the overpayment facility on a flexible mortgage. By making even small overpayments it is possible to cut down on the length of the loan, thereby making very substantial savings.
With their Flexible Choice mortgage, like all of the Royal Bank of Scotland’s home loan products, interest is calculated on a daily basis, making the effect of adding a little extra to the monthly mortgage payment startling. ‘For less than the cost of a daily cup of coffee, half a pint of beer or scratch-card, people with a mortgage can make substantial savings in both time and money and enjoy a long-term rate which undercuts every other bank’s SVR,’ says Peter Wood, product director of mortgages at RBS. An overpayment of just £1 a day on the Flexible Choice could knock £8,545 in interest – and three years – off a £75,000 25-year mortgage, says Wood.
Payment holidays are also an option on this mortgage. Get more information on Flexible Choice and other Royal Bank of Scotland mortgage products at www.rbs.co.uk.
Northern Rock announces new 10- and 15-year fixed rate deals at a rate of 5.99 per cent. After the fixed period the rate reverts to the lender’s variable mortgage base rate. More details will become available shortly. Ring 0845 601 1581 or visit www northernrock.co.uk to apply.
UCB Home Loans, Nationwide's specialist self-certification lender, has launched a new remortgage package, which features free processing, including a free valuation and cashback of £250. It allows borrowers to choose between a fixed or tracker mortgage at the same rate of 4.99 per cent.
The remortgage offer is being launched at a time when remortgaging is at its highest level so far this year, according to latest figures from the Council of Mortgage Lenders. The package is available on the UCB Home Loans’ FlexiPlus two-year tracker mortgage and on the two-year fixed rate loan. There are no extended tie-ins and the remortgage deal is available for a limited period. Find out more about these products at www.ucbhomeloans.co.uk.