Standard Life Bank Freestyle mortgages have flexible and discount options. Although Standard Life Bank Freestyle mortgages already have flexible features, offsetting can be added to any of the bank's variable rate mortgage deals for a one off fee of £99. With Standard Life Bank Freestyle, offsetting works through an offset reserve account into which mortgage holders can pay their savings.
Money in this account is tax fee and no interest is paid on the savings. Standard Life Bank Freestyle customers can manage this account as they choose, moving money in and out when required, though the balance will have a direct effect on the amount of mortgage interest charged. There is no need to move external current and savings accounts or to link these to the offset mortgage.
Offsetting with Standard Life Bank Freestyle may help people with repayment mortgages to repay their mortgage early. It may also help people with interest only mortgages to reduce the capital balance. Payment levels are reviewed annually. Standard Life Bank Freestyle customers who borrow less than the bank is willing to lend can have access to a cash reserve up to the full amount. This is free with some flexible mortgage products and chargeable (£99) with others. The bank suggests that this can be used for debt consolidation. Customers must apply before drawing down their cash reserve (and pay a £20 fee), with the minimum drawdown set at £1,000.
Standard Life Bank offer two varieties of their offset mortgage: a fixed rate and a tracker rate. The Fixed rate is currently priced at 6.49% and is fixed until 31/03/10. There are currently no valuation fees payable on a remortgage and no arrangement fees. The lender does however charge a booking fee of £600 which can be added to the loan meaning that there are no upfront fees with this mortgage at all. The early redemption penalty is 8 Months interest within first year, Then 6 Months interest until 31/03/2010 although 10% capital repayments are allowed per year without penalty. At the end of the deal the rate reverts to the standard variable rate, currently 7.21% and the APR on this deal sits at 7.4%
The tracker deals offered by Standard Life bank range between 0.57% - 0.91% above the bank base rate. There is a tracker deal at 0.81% above the bank rate with no valuation fees and no lender booking fee. A lender arrangement fee is charged at £799 and can be added to the mortgage advance. The deal is available up to 75% loan to value and has an APR of 6.6%. The great feature about this deal is that the deal tracks the bank base rate for the life of the mortgage term.
No early repayment charges on some products
A fee is payable for each drawdown from the cash reserve
Access to exclusive private medical insurance
