Buckinghamshire Building Society has launched a one-year discounted rate mortgage with no early repayment charges (ERCs).
The product, available at 5.89% – a discount of 2.05% from the mutual’s standard variable rate (SVR) for the first 12 months – with a £2,500 product fee, is aimed at borrowers who may require a short-term lending solution while awaiting a future change in circumstances, such as the sale of another property, receipt of funds, or plans to refinance in the near term.
The mortgage is available for loan amounts between £100,000 and £500,000 and can be used on houses and flats – including new build properties. It is offered on both repayment and interest-only terms for purchase and remortgage applications.
“Not every borrower is looking for a long-term fixed rate commitment,” says Claire Askham (pictured), head of mortgage sales at Buckinghamshire Building Society.
“We regularly speak to brokers whose clients need a shorter-term solution that gives them flexibility while they work towards a future change in circumstances.
“Whether that’s a planned refinance, a property sale, the release of funds, or another anticipated event, this product provides an option for borrowers who want access to short-term lending without being tied in by early repayment charges.”
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The building society recently expanded its range of BTL and holiday let products, citing continued landlord appetite.