Brokers offer World Cup mortgage

Football fans are being given the chance to gamble the cost of their home loan on the fortunes of England in the World Cup with the launch this morning of a new mortgage.

The World Cup Mortgage, offered by brokers Chase de Vere, will offer a gradually receding interest rate the further England progress in the World Cup competition, which could in theory decrease to as low as 1% if England were to win.

The variable rate mortgage starts at 0.75% below the Bank of England base rate, currently 4%, and will offer borrowers a discount of a further 0.5% if England reach the semi-finals, discounting by a further 1.75% reduction if England carry off the cup.

Of course, the deal comes with its fair share of drawbacks, mainly that the odds on England winning the cup are fairly steep. Ladbrokes give the team odds of 10/1 to win, whereas internet betting site totalbet.com gives them a more generous 17/1.

Odds aside, the loan won't suit everybody as Chase de Vere are offering to lend only to those who want to borrow ?50,000 or more (up to ?200,000) and are asking borrowers to stump up a minimum deposit of 25% of the value of the property.

If the discounts do become available, borrowers with a ?100,000 loan at today's rates could save ?187.50 a month for a two-year period.

After this period the interest rate will revert to 1.5% over the Bank of England base rate. If the Bank raises interest rates in the next two years, even the glow of an England victory might start to fade for borrowers faced with a sudden hike in payments.