John Charcol introduces alternative to fixed rate
John Charcol's Interest Rate Protector caps rising rates.
Wednesday, 07, Jul 2010 07:00
An independent mortgage expert has launched a new product designed to protect consumers from unexpected interest rate hikes.
The Interest Rate Protector is described by creators John Charcol as "interest rate protection without the expense of a fixed rate".
It will cap a borrower's interest rate at a level of their choosing and for a period of time that they determine, allowing customers complete choice of how to repay their mortgage.
"With many borrowers currently enjoying the benefits of an ultra low interest rate environment, those on a variable rate risk some tough times ahead when rates, as they simply have to at some stage, rise," said John Charcol's Ray Boulger.
The traditional way to combat this is to switch to a fixed rate deal, but Mr Boulger insists that the Interest Rate Protector provides a cheaper alternative.
Leeds Building Society recently took aim at the fixed rate market, offering a "best buy" deal of 3.75 per cent.