New discounted variable rate mortgages from Norwich & Peterborough

Norwich & Peterborough has launched a range of new 3 year discounted variable rate mortgages.

These new variable rate mortgages have differing discounted rates depending on the minimum interest rate you’re prepared to accept:

• 2.95% discounted rate for 3 years (discount 2.40% from SVR) available with minimum interest rate floor of 2.75%
• 3.15% discounted rate for 3 years (discount of 2.20% from SVR) available with minimum interest rate floor of 3.00%

The maximum LTV for these is 75% and the minimum loan amount £50,000. There’s a £795 reservation fee but there’s a free valuation and free legal fees or £200 cashback for remortgage customers.

Up to 10% captial repayment can be pade per annum, subject to a £10,000 cap, without early repayment charges applying. Otherwise the early repayment charge is 3% in the first 3 years.

If you have an N&P Gold Current Account or are prepared to open one you can apply for an offset mortgage, which again are offered at different offset rates depending on the minimum interest rate floor set.

Richard Barker, product manager at N&P, said:  “The new 2.95% discounted rate compares favourably with what’s available on the high street.  Although some other lenders offer a lower rate, our lower fees and higher LTV help to offset this.

N&P is carefully gearing up for an expected gradual increased demand as the housing market recovers in 2010.  We’re not predicting a boom by any means, rather we expect to see a slow and steady pick up in the numbers of people looking to buy or re-mortgage.  Recovery from the recession is still fragile.”