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Rates cut on new discount mortgages

Amanda Jarvis

September 20, 2002

From Monday 23 September, borrowers can obtain a three-year discount rate from as low as 3.69% (5.50% APR) – a full 2.0% discount off The Derbyshire’s Standard Variable Rate (SVR).

The new deals are available to customers through any of the Society’s 53 branches or by calling Derbyshire Direct free on 0800 085 2020.

The rates are:
Three-year discount rate, up to 80% LTV, is 3.69% (5.50% APR) – a 2.0% reduction on SVR.
Three-year discount rate, from more than 80% to 90% LTV, is 3.89% (5.60% APR) – a 1.8% reduction on SVR.
Three-year discount rate, from more than 90% to 95% LTV, is 4.09% (5.60% APR) – a 1.6% reduction on SVR.

Five-year discount rate, up to 80% LTV, is 3.99% (5.40% APR) – a 1.7% reduction on SVR.
Five-year discount rate, from more than 80% to 90% LTV, is 4.09% (5.40% APR) – a 1.6% reduction on SVR.
Five-year discount rate, from more than 90% to 95% LTV, is 4.24% (5.50% APR) – a 1.45% reduction on SVR.

Other key features include:
No Mortgage Indemnity Guarantee charge.
Daily interest method of calculation for capital repayments.
No early repayment charges after the discount period.
Choose either a repayment or interest only mortgage.

Stephen Leather, Director of Sales, says: “We anticipate very large volumes of demand for these new discount deals which will be right up there with the market leading rates. At such highly competitive prices, we expect customers to snap them up quickly.”

There is an early repayment charge on both the three-year and five-year discount mortgages of 3.0% of the amount repaid during the discount period.

There is an application fee of £195 for qualifying existing members* and £295 for other applicants. Of this, £75 is payable ‘up front’ and is non-refundable. The balance is paid on completion or can be added to the loan. A ‘standard’ valuation fee is charged on these discount deals.


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