Egg adds to fixed rate mortgages

Egg has launched what, it claims, will be a market-leading product among fixed rate mortgages.

The three-year deal will be made available to homeowners tomorrow (February 1st), offering an interest rate of 5.39 per cent.

To increase the product's attractiveness, the lender has included an arrangement fee of £499 and made the deal available for loan-to-values of up to 90 per cent.

At the end of the fixed rate period, a mortgage interest rate of 6.79 per cent is payable for the reminder of the mortgage, though no early repayment charges will be incurred after the three-year fixed rate elapses.

"This mortgage is aimed at customers who want the security of knowing exactly how much their monthly payment will be, and get it fixed at a great rate," said Stephen Bright, head of lending and insurance at Egg.

"In today's climate with increasing energy prices and economic uncertainty, people want to manage their finances more effectively and budget for the longer term."

Egg is one of several lenders who have recently unveiled new fixed rate mortgages, with both Alliance and Leicester and Scarborough Building Society having done so in the past two weeks.

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