Scottish Widows unveils new fixed-rate offset offer

Mortgage lender Scottish Widows Bank has announced the launch of a two-year fixed-rate offset mortgage – previously only customers on variable, tracker and discounted products have had the option to offset.

A rate of 5.45 per cent will be available at up to 95 per cent loan-to-value and for LTV levels above this a rate of 5.99 per cent will apply.

The product also has a booking fee of £495 up to 85 per cent and £595 for LTVs over this amount.

Murdo McHardy, head of product development and marketing at Scottish Widows Bank, said that it is currently important for lenders to offer “more security” in their mortgages, owing to the recent interest rate increase.

“In the current climate, this new product offering will not only provide a welcome safeguard of a fixed-rate, but also the flexibility of an offset product that ensures your savings are consistently working to reduce your mortgage.”

This product will allow up to ten per cent of the loan to be repaid once a year by cheque without any early repayment charge. Any extra payments in the fixed-rate period will incur a charge of three per cent of the amount repaid.