BM Solutions tracker, low rates - am I missing something?

geekboy

Hi folks.

BM Solutions are putting themselves at the top of the search charts with amazingly low rates. For example:

"BM Solutions 4.44% 2-year tracker"
base rate - 0.81% (currently 4.44%) for two years
arrangement fee 1.25% of principal
early repayment charge 5% of principal for first two years
standard variable rate 7.24% after two years

Doing the sums, it seems to me that if you're confident you're not going to have to bail out within two years, and you've got a bit of liquidity up-front for the arrangement fee, it's an astonishingly good deal.

So good, that being a noobie I'm wondering whether I'm missing something crucial. The info sheet is here, and the extra details are here. It seems to me that the only penalty to escape after the 2-year special rate is up is a £250 "product switching fee", which is expensive but small fry compared to the overall savings.

So. What do you think? Am I missing something catastrophic and fundamental?

thanks, as always, for your opinions!

cheers,
geekboy

geekboy

<bump for the morning>

Anyone have an opinion on this?

cheers.

toonfish

it's a great product IMO - as long as you factor in the hefty arrangement fee.