Legal and General (L&G) has enhanced its range of flexible mortgages by introducing four combinations of discount and cashback to allow customers to pick and mix products in order to satisfy their borrowing needs.
The new deal allows customers to choose between £200 and £400 cashback. An initial discount, calculated by the amount of cashback taken and the loan to value (LTV) percentage, is to be received by new customers for the first six months of the mortgage. Customers can also choose to substitute their cashback with L&G’s free legal service for remortgages.
According to the lender, each of the discount and cashback options come with all the features included in its flexible mortgage range, including facilities to make overpayments, take payment holidays and reborrow.
The four options currently available with the range of discount/cashback combination flexible mortgages are a rate of 5.35% with 1.5% discount, up to 75% LTV and £200 cashback, or a 5.85% rate with 1% discount, up to 75% LTV and £400 cashback. It is also launching a 5.85% rate with 1% discount, up to 95% LTV and £200 cashback, or a rate of 6.35% with 0.5% discount, up to 95% LTV and £400 cashback.
Mike Bury, managing director of L&G Bank, said: “Customers can now pick and mix the flexible mortgage that suits their circumstances. If they are remortgaging then the higher cashback may suit them whereas if they just want a cashback to cover the legal costs of buying a new home the lower cashback with a higher discount could be better for them.”
Products are available on an interest only or repayment basis and interest is charged daily, with no redemption fees for any products included in the range. The interest rate reverts to the variable rate, currently 6.85%, following the initial discount period.
Advisers wanting further details if L&G’s discount/cashback combination flexible mortgages should call 08700 100 338 for further details.
