Legal & General mortgages available over 4 news rates

Date:Monday 16th November 2009
Author: Max Freedman

Legal & General has announced plans to base its products on four interest rates rather than just one, providing more flexibility for customers.

The mortgage provider has made changes to its Mortgage Decreasing Term Assurance (MDTA), to provide a series of new rates which the cover is based on.

MDTA protects the debt of the mortgage and decreases as the loan is paid off. The different levels will allow customers to make choices depending on their budget, personal requirements and how much risk they are willing to take.

Lower interest rates will mean reduced premiums, but higher rates will give the holder more cover.

Bonnie Burns, Legal & General's protection product technical director, said the new rates will help customers who do not mind the risk of paying more in the future for a low rate now as well as businesses who may prefer a higher rate for peace of mind.

Legal & General has recently been attempting to make itself more competitive by launching a range of new products, including three-year reverse stepped tracker with an interest rate of the Bank Base Rate plus 3.49 per cent in the first year.