Bristol & West has launched a new mortgage for borrowers who want an overpayment facility but do not require the other features typical of a flexible mortgage.
Flex1, calculates interest daily and gives borrowers the opportunity to overpay whenever they have money spare and then to choose to either shorten their mortgage term or reduce the level of future payments. There is no drawdown facility available and overpayments cannot be used to take payment holidays. The initial rate is 4.99% for six months followed by a 1% discount for 12 months.
Debbie Staveley, press officer at Bristol & West, said: “We did some research and found that a lot of people find flexible products complicated. Many are just interested in the overpayment facility and this mortgage is good for people who want the security of knowing that their balance will keep going down.”
There is no minimum overpayment and advance notification of overpayments is not necessary.