RateGuard will be recommended by Countrywide to customers who are on their lender’s SVR and unable to remortgage. The product will protect them from future interest rate rises, with customers able to take out insurance at 1% or 2% above base rate or Libor.
Grenville Turner, chief executive of Countrywide, said: “For years, SVR customers have felt that they only have two options: either remortgage or stay as they are and chance huge repayment increases if the Bank of England increase interest rates. RateGuard presents a genuine alternative for those without the equity in their home to remortgage at an attractive rate.”
Chris Taylor, chief executive of MarketGuard, said: “The FSA estimates that changed lending conditions have already left in excess of two million people unable to remortgage. If interest rates start to move upwards in response to inflationary pressure this number will increase dramatically. RateGuard allows Countrywide’s consultants to protect their clients from the effects of interest rate rises by paying a monthly insurance premium.”
