Tracker for life that will stay at same rate for three years.

Financial Adviser, June, 2004

DUNFERMLINE Building Society has launched a lifetime tracker mortgage guaranteed not to go above 6.09 per cent for three years.

The product has been set at 0.74 percentage points above the Bank of England base rate and is capped at 6.09 until 31 May 2007, with a minimum pay rate capped at 0.74 points above base rate of 1.75 per cent. Early redemption penalties apply until 31 May 2007, but there are no tie-ins after the capped period. Dunfermline's arrangement fees stand at AGBP295, which can be added to the loan.

Ray Boulger, senior technical manager for Charcol, said: "I like the concept of lifetime trackers, but the cap is about a quarter point too high to be competitive and the lifetime rate of 0.74 points above base rate is not the best in the...

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