Scottish Widows has cut rates on its flexible remortgage products to as low as 1.19 per cent, with all products featuring the option to offset.
The lender is offering 2-year fixed rates up to 50 per cent loan-to-value (LTV) from 1.19 per cent with a £999 fee, rising to 1.45 per cent with a £1,999 fee for lending of more than £1m at an LTV of 50 per cent and over.
Meanwhile, 5-year fixes are available from 1.75 per cent at up to 50 per cent LTV and 1.99 per cent between 50 and 75 per cent LTV. Both options come with a fee of £999.
The rates on the flexible remortgage range have been lowered to match the lender’s professional remortgage range.
Scottish Widows Bank managing director Martin Fleming said: “In this market there’s a growing number of people struggling to decide whether to pay down their mortgage when remortgaging or set the cash aside in a low-interest environment.
“Reducing rates on our Flexible product range will help open up the market to those who in the past thought offset came at a premium.
“With rates at all-time lows, enhanced repayment vehicles and lower product fees, we are providing an attractive option for those facing that dilemma, while helping plug the gap in the market for products at 50 per cent LTV which we are confident will be welcomed by brokers.”
Ian Ward, managing director at Wirral-based The Mortgage Partnership, commented: “Rate reductions are always welcome by advisers and their clients, and Scottish Widows will certainly win some Brownie points for their bold pricing.
“The offset mortgage option being offered at such low rates challenges advisers to really take a fresh look at what is a fantastic facility. I can see this option being increasingly popular as lenders like Scottish Widows provide increasing support. It is good to see a major name making a strong statement of intent."
simon.allin@ft.com
