PROPERTY: DEAL FINDER ; Each Week, Two Mortgage Brokers Look at a New Product. This Week, Simply Freestyle from Standard Life Bank

Article excerpt

Simply Freestyle is a new addition to Standard Life Bank's Freestyle Mortgage range. It has a two-year 4.9 per cent discount, aimed at first- time buyers and those who are remortgaging.

Redemption penalties are charged if you switch loans during the first four years - three months' gross interest charged at the standard variable rate (SVR) of 6.9 per cent. As with Standard Life's other Freestyle Mortgages, you can make overpayments, take payment holidays and draw down cash you have overpaid.

Standard Life Bank: 0845 845 8450 or www.standardlife.com

Verdicts

Simon Tyler (Chase de Vere): The question is whether you want a two-year discount when there is a real fear the next move in interest rates will be upwards. Many borrowers prefer the peace of mind of a fixed rate.

Assuming a two-year discount is for you, can you do better in the market? Take a look at Alliance & Leicester's equivalent product: Standard's initial pay rate is cheaper - 4.9 against 5.09 per cent, saving nearly pounds 8 a month on a pounds 50,000 mortgage. Standard's SVR is also cheaper (6.9 versus 6.99 per cent). But in a market where most lenders have been reducing redemption periods it is strange that Simply Freestyle has a two-year overhang, especially as A&L has no penalties. …