As a long-standing favourite of the high net worth London market, Harrods Bank has recently announced the launch of 2 new residential, 5 year fixed rate products for borrowers, which are set to be added to its range of residential mortgages, and are both now available with or without an early repayment charge (ERC).
The first of Harrods’ 5 year fixed products comes in at a starting rate of 2.99% with a minimum 0.75% arrangement fee and a maximum loan to value (LTV) of 70% or 65% for interest only. This rate equally comes with the option for 20% overpayment per year early-repayment-charge-free, or at 3% during years 1 and 2, 2% in years 3 and 4 and 1% in year 5.
Harrods Bank mortgages also now offer an alternative 5 year fix which comes with a rate of 3.25% with no early repayment charges, as well as offering a minimum 0.75% arrangement fee and a maximum LTV of 75% (or 65% for the interest only option). All of Harrods Bank’s new products have a minimum loan size of £750,000.
These are not the only changes Harrods Bank has applied to its mortgage offerings lately, however, following the news Harrods recently revealed new tracker rates were also to be added to its residential range, which have now counted towards 9% of new mortgage lending and 20% of daily enquiries since the release. This comes as great news for those considering the benefits of switching to a tracker mortgage while interest rate rises remain speculative, as the 2 year fix offers the opportunity to switch again after 1 year if rate rises quicker than expected.
The latest tracker rate products from Harrods Bank include a 2 year tracker at 2.29% for 70% LTV or 65% for interest only, with a minimum arrangement fee of 0.75% and 20% overpayment per year early-repayment-charge-free. 5 year trackers are also available at 2.89% for 75% LTV or 65% on interest only, with the same ERC overpayment terms applied as stated above.