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Product round-up

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  • 11/12/2001
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Each fortnight we bring you the key features of recently launched or relaunched mortgage products

BUY-TO-LET

Coventry Building Society

Product: Five-year fixed rate buy-to-let mortgage

Description: Fixed to 30/04/2007.

Rate: 5.75%.

Max LTV: 80%

Redemption penalty: Six months’ interest to 30/4/2007.

Procuration fee: Negotiable

Arrangement fee: £425 plus £50 administration fee.

Other: Legal fees discount to remortgage.

Contact: 0845 766 5522

Ipswich Building Society

Product: Buy-to-let mortgage

Description: Variable buy-to-let.

Rate: 5.65%.

Max LTV: 80%

Redemption penalty: One month’s interest charged if loan is redeemed or reduced to half original amount in first three years.

Procuration fee: 0.3% up to £100,000, 0.4% over £100,000, minimum £150, no maximum.

Arrangement fee: £195

Other: No compulsory insurance, existing members’ free valuation fees and no application fee.

Contact: 07979 906 847

DISCOUNT

Ipswich Building Society

Product: Remortgage discount mortgage

Description: 1.16% discount for two years.

Rate: 4.49%.

Max LTV: 80%

Redemption penalty: Three months’ interest charged and cashback returned if loan is redeemed or reduced to half original amount in discount period.

Procuration fee: 0.3% up to £100,000, 0.4% over £100,000, minimum £150 no maximum.

Arrangement fee: None

Other: £250 cashback, existing members get extra £100 cashback.

Contact: 07979 906 847

Product: Two-year discount mortgage

Description: 1.5% discount for two years.

Rate: 4.15%.

Max LTV: 95%

Redemption penalty: Three months’ interest charged if loan is redeemed or reduced to half original amount in discount period.

Procuration fee: 0.3% up to £100,000, 0.4% over £100,000, minimum £150 no maximum.

Arrangement fee: £250

Other: Purchase only, existing members’ free valuation and no application fee.

Contact: 07979 906 847

The Mortgage Operation (TMO)

Product: Discounted freedom mortgage

Funded by: Bristol & West

Description: Seven-month discount of 0.65% below BBR, providing a current pay rate of 3.35%, reverting to BBR + 1.2% for the life of the mortgage.

Maximum LTV: 90%

Arrangement fee: £299

Other: A drawdown facility is available.

Contact: 020 7571 2414

FIXED RATE

Coventry Building Society

Product: Five-year fixed rate mortgage

Description: Fixed to 30/4/2007.

Rate: 5.35%.

Max LTV: 95%

Redemption penalty: Six months’ interest to 30/4/2007, but may reduce capital by 5% per annum without penalty.

Procuration fee: Negotiable

Arrangement fee: £295

Other: Legal fees to remortgage, free valuation.

Contact: 0845 766 5522

NatWest Bank

Product: Fixed rate

Description: 18 months fixed.

Rate: 4.59%.

Max LTV: 95%

Redemption penalty: Balance of mortgage multiplied by the difference between the NatWest money market rate and the rate paid on the mortgage, multiplied by the number of days left on that rate, divided by 365.

Procuration fee: 0.4% or minimum £250.

Arrangement fee: £295

Other: No tie-ins beyond the fixed rate period.

Contact: 0800 400 999

FLEXIBLE

Alliance & Leicester

Product: Online two-year fixed rate flexible mortgage

Description: Fixed rate mortgage until 29/2/2004.

Rate: 4.69%.

Max LTV: 95%

Redemption penalty: Six months’ interest until 29/2/2004, but only if loan is paid in full.

Procuration fee: Negotiable

Arrangement fee: £295, free to first-time buyers.

Other: Free valuation.

Contact:

www.al.intermediary.co.uk

Product: Five-year fixed rate flexible mortgage

Description: Fixed rate mortgage until 29/2/2007.

Rate: 5.14% or 5.09% if the borrower is an existing customer.

Max LTV: 95%

Redemption penalty: Six months’ interest until 29/2/2007.

Procuration fee: Negotiable

Arrangement fee: £295, no fee for first-time buyers.

Other: Free valuation and homebuyers insurance.

Contact: 0845 303 3000

Coventry Building Society

Product: Flexx fixed mortgage

Description: Fixed until 30/6/2003, then reverts to Flexx.

Rate: 4.75%.

Max LTV: 95%

Procuration fee: Negotiable

Arrangement fee: £295

Other: Legal fees to remortgage, free valuation.

Contact: 0845 766 5522

M2000 tracker lowest in market

Mortgage 2000, the intermediary mortgage sourcing system, is offering what is possibly the lowest stepped base rate tracker mortgage ever.

Funded by Bristol & West, it has an initial rate of 0.7% until 31/12/2002. This is followed by rates of 4.9% and 5.6%, until 31/12/2003 and 31/12/2005 respectively. Redemption penalties on the loan are 5% of the outstanding loan plus £100 before 31/12/2003, 4% plus £100 for the next two years and 3% plus £100 the following year. The product is available at an LTV of up to 95%, and carries an arrangement fee of £345.

Commenting on the deal, Sean Hornsby, director of Mortgage 2000, said: ‘This product will sell well to first time buyers needing large loans, where there is a need to keep payments low in the first year. It has an incredibly low initial pay rate without a massive sting in the tail. In particular, with the way capital and interest loans are structured, this product means a higher proportion of capital is repaid early on. And who knows, the rate could fall even lower if there are further base rate cuts.’

Procuration fees available with this mortgage are 0.35%, with a minimum of £150.

Contact: 0845 3455 701

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