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Lender says...

RBS Intermediary Partners has reduced the rates on a number of its fixed rate and tracker mortgages.

The First Active two-year fixed rate has been reduced from 6.79 per cent to 6.34 per cent. The product is available up to 90 per cent loan-to-value and has a £999 fee. There is an early repayment charge of 2 per cent in the first year and 1 per cent in the second.

There is also a First Active five-year fixed rate mortgage ,which has been reduced from 5.99 per cent to 5.74 per cent. This product is available up to 75 per cent LTV and has a £999 fee.

There are early repayment charges of 5 per cent in the first year, 4 per cent in the second, 3 per cent in the third, 2 per cent in the fourth and 1 per cent in the final year.

RBS has reduced its two-year fixed rate purchase-only product from 6.34 per cent to 5.99 per cent. This is available from 75 per cent LTV with a £999 fee.

The lender also has a two-year tracker available for purchases at 6.19 per cent. The product has a maximum LTV of 90 per cent and a £999 fee.

Both products have early repayment charges of 3 per cent throughout the two-year term.

For all First Active residential remortgage products there are no basic legal or valuation fees. Overpayments of up to 10 per cent of the original balance per year are allowed during the initial deal period.

For RBS overpayments of up to 10 per cent of the outstanding balance each year are allowed during the initial deal period.

Adviser says...

Paul White, a consultant for London-based Belgravia Insurance Consultants, said: "The 5.99 per cent product has a good rate but you have to have a larger deposit to take advantage of that.

"The good news is RBS are heading in the right direction in terms of reducing their rates and lenders are not as nervous as they have been previously. I can see the 90 per cent product being very handy as well.

"Perhaps the recent reported losses will encourage RBS to get some products out there that are priced to sell."

Rating: 4/5 stars

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