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Product round-up

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  • 10/08/2001
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Each month we bring you the key features of recently launched or relaunched mortgage products

Buy to let

Chelsea Building Society

Product: Buy to Let

Description: 2% discount for six months then SVR plus 0.25%.

Rate: Initial rate of 4.99%.

Max LTV: 80%

Arrangement fee: £195

Redemption fee: Interest payable up to the end of the month in which the repayment is made. If the repayment is made within the first five years, an additional fee equivalent to the sum repaid will be charged unless a new mortgage is taken out.

Procuration fee: Varies

Other: Loan applicable for a total of five properties with a maximum of £500,000.

Contact: 0800 291 291

Exclusive Connections

Product: Buy to Let

Funded by: Bristol & West CMS

Description: Fixed until 31/08/2006.

Rate: Initial rate of 6.82%.

Max LTV: 85%

Arrangement fee: £299

Redemption fee: 5% of sum repaid until 31/08/2003, then 4% of sum repaid until 31/08/2005, and 3% of sum repaid until 31/08/2006.

Procuration fee: 0.25%, minimum £100.

Other: Available only to self-employed and employed applicants with no arrears history.

Contact: 0870 330 1817

Product: Buy to Let

Funded by: Bristol & West CMS

Description: Five-year fixed rate mortgage.

Rate: Initial rate of 6.35%.

Max LTV: 85%

Arrangement fee: 1% of loan

Redemption fee: 7% of sum repaid in year one, 6% in years two and three, and 5% in years four and five.

Procuration fee: 0.25%, minimum £100.

Other: Loan applicable for a total of five properties with a maximum of £500,000 or £250,000 per property.

Contact: 0870 330 1817

The Mortgage Operation

Product: Buy to Let

Funded by: Bristol & West CMS

Description: Fixed until 31/07/2003.

Rate: Initial rate of 5.59%.

Max LTV: 75%

Arrangement fee: 1% of loan (can be added to the loan).

Redemption fee: 5% of the amount redeemed to 31/07/2003, then 4% to 31/07/2006 + £100 administration fee.

Procuration fee: 0.5%

Other: Loan applicable for up to five properties.

Contact: 020 7571 2400

Product: Buy to Let

Funded by: Mortgage Express

Description: Low letting buy to let fixed until 3/09/2002.

Rate: Initial rate of 3.75%.

Max LTV: 80%

Arrangement fee: £325

Redemption fee: Six months’ interest at the variable rate until 03/09/2004.

Procuration fee: 0.5%

Other: Overpayments and underpayments allowed. Unlimited properties allowed.

Contact: 020 7571 2400

Capped rate

Coventry Building Society

Product: Five-year capped rate

Description: Capped until 31/10/2006.

Rate: Initial rate of 5.99%.

Max LTV: 95%

MIG: Free to 90%.

Arrangement fee: £295

Redemption fee: Six months’ interest to 31/10/2006.

Procuration fee: Refer to lender.

Other: Free valuation.

Contact: 0845 766 5522 or www.

coventrybuildingsociety.co.uk

Kent Reliance Building Society

Product: Three-year capped discount

Description: Capped rate followed by loyalty discount.

Rate: Initial rate of 5.23% up to 75% LTV, or 5.73% up to 90% LTV.

Max LTV: 90%

Arrangement fee: £150 (can be added to the loan).

Redemption fee: None in first three years, then 1% from year four if transferred to loyalty rate.

Procuration fee: 0.2%

Other: Guaranteed not to exceed 6.48% in first three years. After this, the society’s loyalty rate of 5.98% will apply. Free ASU for six months.

Contact: 0800 783 4248

Discounted rate

Coventry Building Society

Product: Five-year discount

Description: 1.01% discount until 31/10/2006.

Rate: Initial rate of 5.99%.

Max LTV: 95%

MIG: Free to 90%.

Arrangement fee: £195

Procuration fee: Refer to lender.

Other: Free valuation.

Contact: 0845 766 5522 or www.

coventrybuildingsociety.co.uk

Lambeth Building Society

Product: Two-year discount mortgage

Description: Guaranteed to be 1.95% below lender’s SVR in first two years.

Rate: 5.04%

Max LTV: 95%

MIG: Free to 90%.

Application fee: £95

Valuation fee: Between £175 and £300.

Redemption fee: 5% for first two years.

Procuration fee: Varies

Contact: 020 7928 1331

Norwich Union

Product: One-year discount

Funded by: The Mortgage Business

Description: 1.2% discount until 1/10/2002.

Rate: Initial rate of 5.79%

Max LTV: 85%

Arrangement fee: £299

Redemption fee: Three months’ interest in year one, two months in year two and one month in year three.

Procuration fee: 0.5%

Other: Self-certification of income allowed.

Contact: 0845 845 1388

Fixed rate

Alliance & Leicester

Product: Two-year fixed rate

Description: Fixed until 30/09/2003.

Rate: Initial rate of 5.69%.

Max LTV: 95%

MIG: Free to 90%.

Arrangement fee: £295 (first time buyers are exempt).

Redemption fee: Six months’ gross interest during fixed rate period if loan is repaid in full.

Procuration fee: Refer to lender.

Other: Unlimited overpayments and matching underpayments allowed during fixed period. Overpayments can be borrowed back at the fixed interest rate. Interest is calculated monthly.

Contact: 0845 303 3000

Exclusive Connections

Product: Two-year fixed rate mortgage

Funded by: Bristol & West CMS

Description: Fixed until 30/08/2003.

Rate: Initial rate of 5.69%.

Max LTV: 95%

MIG: Free to 85%.

Arrangement fee: £299

Redemption fee: 5% of sum repaid until 30/08/2002, then 4% of sum repaid until 30/08/2004.

Procuration fee: 0.25%, minimum £100.

Other: Up to three months’ arrears within last three years allowed.

Contact: 0870 330 1817

Product: Three-year fixed rate mortgage

Funded by: Bristol & West CMS

Description: Fixed until 30/05/2004.

Rate: Initial rate of 5.69%.

Max LTV: 95%

MIG: Free to 85%.

Redemption fee: 5% of sum repaid until 31/05/2004, then 4% of sum repaid until 31/05/2005.

Procuration fee: 0.25%, minimum £100.

Other: Up to three months’ arrears within last three years allowed.

Contact: 0870 330 1817

Product: Five-year fixed rate mortgage

Funded by: Bristol & West

Description: Fixed until 31/07/2006.

Rate: Initial rate of 5.99%.

Max LTV: 95%

MIG: Free to 85%.

Arrangement fee: £299

Redemption fee: 7% of sum repaid until 31/07/2002, 6% until 31/07/2004, 5% until 31/07/2006, then 4% of sum repaid until 31/07/2007.

Procuration fee: 0.25%, minimum £100.

Other: No borrowing limit on a maximum of 75% LTV.

Contact: 0870 330 1817

Genesis Home Loans

Product: Three-year fixed rate

Description: Designed for applicants who are not in permanent employment.

Rate: Initial rate of 7.99% (SVR + 1%).

Max LTV: 95%

Arrangement fee: £395

Redemption fee: 3% in year one, 2% in year two, and 1% in year three, plus £70.

Procuration fee: Refer to lender.

Contact: 0870 240 0396

Product: Two-year fixed rate

Description: Fixed until 30/09/2002.

Rate: Initial rate of 6.99%.

Max LTV: 75%

Arrangement fee: £395

Redemption fee: 4% in year one, 3% in year two, and 2% in year three, plus £70.

Procuration fee: Refer to lender.

Other: Open to self-cert applicants.

Contact: 0870 240 0396

Ipswich Building Society

Product: Three-year fixed rate

Description: Fixed until 31/10/2004.

Rate: 5.75% up to 80% LTV, or 5.99% up to 95%.

Max LTV: 95%

MIG: Free to 90%.

Arrangement fee: £295

Redemption fee: A charge equivalent to 2.5% of the original loan if the loan is reduced by more than half of the original amount during the fixed rate period.

Procuration fee: If loan is repaid or reduced to less than half of the original value before the end of the fixed rate period an early redemption charge of 2.5% of the original amount will be payable.

Other: Daily interest charges.

Contact: 01473 211 021

Legal & General Mortgage Club

Product: Three-year fixed rate

Funded by: Birmingham Midshires

Description: Fixed until 1/09/2004, then bank base rate plus 1.5%.

Rate: Initial rate of 6.40%.

Max LTV: 100%

MIG: Free to 75%.

Arrangement fee: £299

Redemption fee: During fixed rate period.

Procuration fee: Refer to lender.

Other: 10% of outstanding loan repayable each year without penalty. If the LTV ratio is below 90% at the end of the fix interest will be charged at 1% above base rate. Up to 2% above the purchase price is available at purchase to cover additional costs.

Contact: 0845 300 9977

Mortgage Next

Product: Three-year stepped fixed rate

Funded by: Bristol & West

Description: Fixed until 30/09/2003, then base rate plus 1.5% until 30/09/2004, then 1% above base rate.

Rate: Initial rate of 5.75%

Max LTV: 95% LTV

MIG: Refer to lender.

Arrangement fee: £299, which can be added to the loan.

Redemption fee: 5% of sum repaid until 30/09/2003, then 4% until 30/09/2004 plus £100 administration fee.

Procuration fee: £300

Other: Available to first-time buyers.

Contact: 020 7620 0100

Product: 36-month fixed rate

Funded by: Bristol & West

Description: Fixed for 36 months (then base rate plus 1%).

Rate: Initial rate of 5.99%.

Max LTV: 95% LTV.

MIG: Refer to lender.

Arrangement fee: £299, which can be added to the loan.

Redemption fee: 5% of sum repaid until 30/09/2003, then 4% until 30/09/2004 plus £100 administration fee.

Procuration fee: £225

Other: Available to first-time buyers.

Contact: 020 7620 0100

Standard Variable Rate

Mortgages plc

Product: SVR mortgage

Description: Initial rate payable until 31/08/2002, then SVR+1.5%.

Rate: Initial rate of 6.99%.

Max LTV: 75%

Arrangement fee: £295

Redemption fee: Six months’ interest in the first three years.

Procuration fee: 1% of the loan

Other: For loans up to £1m. £5,000 worth of CCJs, and two months permitted. Targeted at second time purchasers and remortgagers.

Contact: 0845 6050 402

Britannic targets first-time buyers

Britannic Money has launched a new mortgage targeted specifically at first-time buyers. The Flexible Start Mortgage offers a two-year stepped discount off the lender’s usual flexible start rate of 6.99%. The discount in the first year is 3% and 2% in the second, which gives an initial payable rate of 3.99%.

Borrowers can choose to overpay by up to 5% in each of the first four years without penalty, and then have the option to take full flexibility from this point onwards. Redemption charges are levied on the variable gross interest which is charged at lower of base rate plus 2% (currently 7.25%), or the flexible start rate (currently 6.99%) in first three years for overpayments in excess of 5% of the original loan in the first three years for full redemption, and then full redemption of the mortgage in years four and five. The loan is MIG free to 85% and there is a completion fee of £295.

Matt Smith, head of marketing at Britannic Money, said: ‘The obvious market for this is the first-time buyer. This mortgage is acknowledging that life does not stand still, so why have the pain of remortgaging in a few years when your circumstances have changed? Even if flexibility is not top of the list of priorities right now, it may be later on.’

Contact: 08457 743 743 or visit

www.britannicmoney.net

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