What is a 0.99% mortgage?
The new 0.99% mortgage is what’s known as a discount mortgage. A discount mortgage is based on the lender’s standard variable rate (SVR), with the interest on your mortgage being discounted for the duration of the fixed term (2 years in this case). So if the SVR is 3.59% and your discount is 1%, you would be paying 2.59% interest on your mortgage for the length of the deal. However, the SVR is subject to change as the lender sees fit, so the amount you pay could increase. This particular 0.99% mortgage in question launches on the 23rd April, is available to remortgage borrowers only, and comes with a £999 fee. As well as being subject to a maximum loan-to-value (LTV) of 60%, borrowers must keep in mind that:- The minimum loan is £150,000
- The applicant must have no credit issues
- The mortgage must be on a capital repayment basis