Legal & General launches new tracker mortgage

Date:Monday 4th January 2010
Author: Max Freedman

Legal & General has launched a new lifetime tracker mortgage, currently offering borrowers an initial rate of 3.89 per cent.

Tied to the Bank of England base rate plus a rate of 3.39 per cent, the mortgage is provided by Legal & General through ITL Mortgages.

With a loan-to-value (LTV) of up to 80 per cent, the mortgage is capped at a rate of 5.89 per cent until January 31st 2013 and available on properties worth up to £500,000.

There is no repayment charge after the initial two years, plus a free valuation and legal fees.

Martyn Smith, head of mortgage products at Legal & General, said: "This lifetime tracker comes with a cap for the next three years, giving peace of mind in case of sharp bank base rate increases."

In December, Legal & General released a new mortgage range with Newcastle Building Society, offering a two-year fixed-rate at 3.65 per cent, with a maximum LTV of 80 per cent.