24.11.08 by Andrew Montlake

The Return of The 3.99%

To many the 3.99% rate was always a mythical entity, much coveted and once obtained, bragged about incessantly at dinner parties and in pubs all over the UK.

Well, the good news is that it is back.

There are two lenders who currently have versions of the 3.99%.

One is fixed for a year at 3.99% with the added flexibility of being able to repay lump sums without penalty and draw back those lumps when needed. It has a reasonable arrangement fee at £995 and for those who want security for a year until mortgages get back to some semblance of normality it is a good option.

It even comes with a nice remortgage package of free valuation and free legals.

The second is an interesting little number which mixes a 3.99% fixed rate in year 1, with a tracker rate in years 2 and 3. The tracker is set at 1.99% above Bank Base which is currently a pay rate of 4.99%. However, with Bank Base predicted to go to 2% and beyond by next year, this could well see payments below 3.99% in year 2.

There is now some real choice in the market again, especially for those looking to remortgage.

As Bank Base drops further you are likely to see more lenders introducing collars to protect themselves for new applicants, so now is an ideal time to reserve a product.

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