Coutts & Co, the private banking arm of the Royal Bank of Scotland, has added a seven year fixed rate mortgage at 4.99 per cent until July 2016 to its suite of two and five year fixed rate mortgages, in response to client demand. Also going on sale this week is its two year tracker, which tracks base rate plus 2.49 per cent. The bank offers both options on loans of any size in excess of £25,000 ($37,537).  

“This is the first time Coutts have launched a fixed rate longer than five years, and has been developed in response to growing demand from clients looking to fix into the low interest rate environment. We’re also looking at other options including a ten year fixed rate,” marketing head Darren Norman said in a statement.

“Coutts has remained very much open for business over the last 12 months, including large value properties, and in fact our mortgage book has grown considerably over this time as we’ve seen more referral business from new clients unable to arrange high value loans elsewhere,” he added.

Existing mortgage clients wishing to transfer to the new rates can expect a new arrangement fee, currently of 0.5 per cent, with a minimum of £1,000. If they are in a current fixed rate they will also incur an early repayment charge. The offer is only open to new and existing Coutts clients.