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Product round-up

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  • 17/09/2001
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Each month we bring you the key features of recently launched or relaunched mortgage products

BUY TO LET

Exclusive Connections

Product: Buy-to-let mortgage

Funded by: Bristol & West

Description: Fixed rate until 31/10/2004.

Rate: 5.7% until 31/10/2004 ,then bank base rate+1.2% until 31/10/2006.

Max LTV: 85%

Redemption penalty: 5% until 31/10/2003,4% until 31/10/2005, 3% until 31/10/2006.

Procuration fee: Negotiable

Arrangement fee: £299

Other: No redemption overhang.

Contact: 0870 330 1817

GMAC Residential Funding

Product: Fixed rate buy-to-let

Funded by: GMAC

Description: Fixed to 1/10/2003.

Rate: 6.25% up to 75% LTV, 6.55% up to 85% LTV.

Max LTV: 85%

Redemption penalty: 5% up to 1/10/2003, nothing thereafter.

Procuration fee: 0.45%

Arrangement fee: £395

Other: Estimated gross monthly rental must be 130% more than mortgage payment.

Contact: 01344 478 478

Northern Rock

Product: Buy-to-let mortgage

Description: Two, three or five year fixed to 1/11/2003/4/6.

Rate: 6.74% up to 50% LTV, 6.99% up to 75% LTV.

Max LTV: 75%

Redemption penalty: 2% of original loan balance on full redemption during incentive period.

Procuration fee: Negotiable

Arrangement fee: £495

Other: Annual interest anticipated income must be 120% mortgage repayment at projected 8% interest.

Contact: 0845 600 1516

Product: Buy-to-let mortgage

Description: Two-year fixed rate to 1/11/2003.

Rate: 3.74% up to 50% LTV, 3.99% up to 75% LTV.

Max LTV: 75%

Redemption penalty: 4/7/5/4/ 2/1% of amount repaid in six years.

Procuration fee: Negotiable

Arrangement fee: £495

Other: Annual interest, anticipated income must be 120% mortgage repayment at projected 8% interest.

Contact: 0845 600 1516

Product: Buy-to-let mortgage

Description: 2% or 3% cashback.

Rate: Variable base rate, currently 6.75%.

Max LTV: 50% for 3% cashback, 75% for 2% cashback.

Redemption penalty: 3/3/2/ 2/1/1% of amount repaid in six years for 3% cashback, 2/2/2/1/ 1/1% of amount repaid in six years.

Procuration fee: Negotiable

Arrangement fee: £495

Other: Annual interest, anticipated income must be 120% mortgage repayment at projected 8% interest.

Contact: 0845 600 1516

CAPPED RATEs

Kent Reliance Building Society

Product: Capped discount mortgage

Description: Three-year capped discount

Rate: 1.25% discount up to 75% LTV, 0.75% discount up to 90% LTV

Max LTV: 90%

Redemption penalty: Within discount period 1.5% of the amount repaid, thereafter none.

Procuration fee: 0.2%

Arrangement fee: £250

Contact: 01634 848 944

Pink Home Loans

Product: Capped rate mortgage

Funded by: Staffordshire Building Society

Description: Capped until 01/10/2003.

Rate: 5.19%

Max LTV: 95% up to £150,000 for purchases, 90% up to £200,000 for remortgages.

Redemption penalty: 5% in the first three years, 14 days’ interest thereafter.

Procuration fee: 0.3%

Arrangement fee: £295

Other: Free valuation, annual interest.

Contact: 08707 590 170

Skipton Building Society

Product: Capped rate mortgage

Description: Capped until 31/1/2007.

Rate: 6.5%

Max LTV: 85%

Redemption penalty: 5/4/ 3/20/1% for five years.

Procuration fee: Negotiable

Arrangement fee: £295

Other: Free MIG, 10% capital repayment per annum without charge.

Contact: 0800 446 776

DISCOUNTs

Cheshire Building Society

Product: Two-year discount mortgage

Rate: 1.75% discount to variable rate up to 80% LTV, 1.6% discount to variable rate up to 95% LTV.

Max LTV: 95%

Redemption penalty: Repay-ment of discount within incentive period.

Procuration fee: Negotiable

Arrangement fee: None

Contact: 0845 055 4567

Product: Three-year discount

Description: Three-year discount for remortgages only.

Rate: 1.35% discount to variable rate up to 80% LTV.

Max LTV: 80%

Redemption penalty: Repay-ment of discount within incentive period.

Procuration fee: Negotiable

Arrangement fee: None

Contact: 0845 055 4567

Kent Reliance BS

Product: Discount mortgage

Description: Three-year discount

Rate: 1.25% discount up to 75% LTV, 0.75% discount up to 90%.

Max LTV: 90%

Redemption penalty: 1.5% of amount repaid within discount period, thereafter none.

Procuration fee: 0.2%

Arrangement fee: £150

Other: Available from 14 September.

Contact: 01634 848 944

The Mortgage Operation

Product: Fee assisted remortgage

Funded by: Birmingham Midshires Solutions

Description: 30-month discount to remortgagers.

Rate: 1.9% discount , initial payable rate 4.85%

Max LTV: 95%

Redemption penalty: 3/2/1% in years 1/2/3 of amount redeemed.

Procuration fee: 0.35%, minimum £200

Arrangement fee: £99

Other: One free valuation, free legal service, daily interest.

Contact: 020 7571 2414

FIXED RATEs

Abbey National

Product: Fixed rate mortgage

Description: Two-year fixed rate.

Rate: 5.65% up to 75% LTV, 5.85% up to 95% LTV.

Max LTV: 95%

Redemption penalty: 75 days’ interest in incentive period.

Procuration fee: 0.25%, minimum £100.

Arrangement fee: £195

Other: Reverts to a classic tracker at 0.9% over base rate or lifestyle tracker at 1%. Contact: 0800 555 100

Product: Fixed rate mortgage

Description: Three-year fixed rate.

Rate: 5.97% up to 75% LTV, 5.99% up to 95% LTV.

Max LTV: 95%

Redemption penalty: 135 days’ interest in incentive period.

Procuration fee: 0.25%, minimum £100.

Arrangement fee: £195

Other: Reverts to a classic tracker at 0.9% over base rate or lifestyle tracker at 1%.

Contact: 0800 555 100

Product: Fixed rate mortgage

Funded by: Abbey National

Description: Five-year fixed rate.

Rate: 5.69% up to 75% LTV, 5.89 up to 95% LTV.

Max LTV: 95%

Redemption penalty: 280 days’ interest in incentive period for 5.69% rate, and 270 days’ interest for 5.89% rate.

Procuration fee: 0.25%, minimum £100.

Arrangement fee: £195

Other: Reverts to a classic tracker at 0.9% over base rate, or lifestyle tracker at 1%.

Contact: 0800 555 100

Chelsea Building Society

Product: Five-year fixed rate mortgage

Description: Fixed rate until 1/12/2006.

Rate: Initial rate 5.85%.

Max LTV: 95%

Redemption penalty: During fixed rate period 5% of balance outstanding, unless replaced with another Chelsea mortgage.

Procuration fee: £245

Arrangement fee: £295

Other: Free legal fees if Chelsea BS’s solicitors are used, other-wise £200 towards fees. Overpayments of up to 20% of monthly payments without penalty.

Contact: 08702 404 808

Exclusive Connections

Product: Five-year fixed rate mortgage

Funded by: Bristol & West

Description: Fixed for five years.

Rate: 5.99% for five years.

Max LTV: 95%

Redemption penalty: No extended redemption fee.

Procuration fee: Negotiable

Arrangement fee: None

Contact: 0870 330 1817

Product: Fixed rate mortgage

Funded by: Bristol & West

Description: Fixed for two years.

Rate: 4.75%, reverts to bank base rate + 1.75%.

Max LTV: 95%

Redemption penalty: 5% in years one and two, 4% in years three and four, 3% in year five.

Procuration fee: Negotiable

Arrangement fee: None

Contact: 0870 330 1817

Legal & General

Product: Fixed rate mortgage

Description: Fixed until 2/11/2004.

Rate: 5.59%

Max LTV: 75%

Redemption penalty: 145 days’ interest until 2/11/2004.

Procuration fee: Up to £200.

Arrangement fee: £195

Other: Reverts to a flexible mortgage at end of fixed rate.

Contact: 0845 300 9977

Mortgages plc

Product: Adverse fixed rate mortgage

Description: Fixed until 1/12/2002.

Rate: 6.74% up to 65% LTV, 7.24% up to 80% LTV, 7.49% up to 85% LTV.

Max LTV: 85%

Redemption penalty: Six months’ interest in first three years, one month’s interest, or notice thereafter.

Procuration fee: 1%

Arrangement fee: £295 below £250,000, £495 above £250,000.

Other: Any amount of CCJs and arrears.

Contact: 0845 6050 402

Norwich & Peterborough BS

Product: Spanish fixed rate mortgage

Description: Fixed rate for two or five years for people buying property in Spain.

Rate: 5.74% for two years, or 6.49% for five years.

Max LTV: 65%

Redemption penalty: Six months’ interest in the first five years.

Procuration fee: 0.25%

Arrangement fee: £125 on two year, or £225 on five year.

Other: No compulsory buildings or contents insurance, repayments in sterling, repayable up to 20 years.

Contact: 01733 372 006

Pink Home Loans

Product: Three-year fixed rate mortgage

Funded by: Verso

Description: Self-cert only fixed rate.

Rate: 5.75% until 01/11/2004, 5.95% until 01/11/2004 .

Max LTV: 85% up to £300,000, 75% up to £750,000.

Redemption penalty: 5% of amount repaid to 01/11/2005,

5% of amount repaid to 01/11/2004.

Procuration fee: 0.45%

Arrangement fee: £325

Other: Daily interest.

Contact: 08707 590 170

Capital Reward from Standard Life

Standard Life Bank has enhanced its product range with the launch of the Capital Reward Mortgage.

The product automatically reduces the capital over the length of the mortgage, reducing interest paid by paying a bonus of 1% of the borrower’s outstanding capital every two years for the term of the mortgage.

The product has a variable rate, currently 6.45%, and must be repaid before the borrower reaches age 65. The maximum LTV is 90% and only administration costs are charged for early redemption.

The borrower may make a regular or lump sum overpayment of £1,000 and subject to having done so, may take two payment holidays a year after the first six months.

John Gill, finance director at Standard Life, said: ‘We are rewarding the loyalty of our customers by providing a product that works to pay off the loan on a regular basis throughout the full term of the mortgage.

‘Other lenders may focus on the benefits of overpayment. We are taking this one step further by overpaying for our customers by giving a regular two yearly 1% bonus on the outstanding capital. If customers continue to pay the same monthly amount as before, they too will be overpaying.’

There is no arrangement fee and commission for advisers is 0.32% of the loan.

Contact: 0845 845 8451

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