News
23/05/2006 - SMILE LAUNCHES NEW DISCOUNTED MORTGAGE TRACKER
Internet bank, smile, today (23 May 2006) launched a new mortgage that will offer a generous discount of 3.99 per cent for the first year, before reverting to a 5.25 per cent Bank of England Base Rate tracker for the entire lifetime of the loan.
The smile one-year discount mortgage is provided by The Co-operative Bank and, after the introductory period, guarantees to track the Bank of England Base Rate, currently 4.95 per cent, plus 0.30 per cent, for the duration of the loan.
smile is not only offering a low rate but also excellent overall value to all borrowers. Unlike many other lenders, smile does not impose costly higher lending charges on borrowers who wish to borrow more than 95 per cent of the value of the property. In addition, borrowers choosing to remortgage to smile will benefit from free legal and valuation fees.
David Newman, Director of Marketing Management at smile, said: “Following the popularity of the smile lifetime tracker mortgage last year, we recognise that customers are increasingly looking for better value in the form of low rates, which will not only provide them with a competitive product, but also long term peace of mind that their rate will remain close to the Base Rate for the full length of their mortgage.
“With recent market increases to fixed rate mortgage products, tracker products are in strong demand, and we are confident that this new product has everything borrowers could possibly be looking for – whether buying for the first time, moving house, or simply moving their mortgage.”
As with all Co-operative Bank mortgages, customers can benefit from a number of positive environmental features including receiving a free home energy rating report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved therefore providing both financial and environmental benefits.
In addition, for the duration of the mortgage, smile will make an annual donation to Climate Care to help tackle global warming. This scheme was developed after extensive consultation with the environmental community, including WWF and Forum for the Future. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation on reforestation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for lifetime of the mortgage.
ENDS
Note to Editors:
| Lender | Initial Rate | Initial Term | Ongoing rate | Free Legals/ Val for remortgages? |
|---|---|---|---|---|
| smile | 3.99% | 1 year | 5.25% | Yes |
| NatWest | 3.79% | 1 year | 6.59% | No |
| Standard Life | 3.49% | 6 months | 5.95% | No |
| Egg | 3.99% | 6 months | 5.49% | No |
| Abbey | 4.24% | 6 months | 5.25% | Yes |
| Newcastle BS | 4.40% | 6 months | 5.00% | No |
smile comparison with similar competitor’s mortgage products
ISDN facilities are available for broadcast media interviews.
23rd May 2006
For further information contact:
Julie Darroch
Co-operative Financial Services Press Office
Tel: 0161 829 5091
Fax: 0161 829 4590
e-mail: julie.darroch@cfs.co.uk
