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Product round-up

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  • 23/04/2002
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Each fortnight we bring you the key features of recently launched or relaunched mortgage products

BUY-TO-LET

Exclusive connections

Product: Buy-to-let discount mortgage

Funded by: Mortgage Express

Description: 0.76% discount for first year.

Rate: 4.99%

Max LTV: 85%

Redemption penalty: Six months’ interest at the SVR for three years.

Procuration fee: Negotiable

Arrangement fee: £325

Other: No flats above shops, no ex-council properties, no DSS. Estimated income 130% above repayment level.

Contact: 0870 330 1817

Mercantile Building Society

Product: Buy-to-let discount mortgage

Description: 1% discount until 31/3/2004.

Rate: 4.84%

Max LTV: 75%

Redemption penalty: 3% for three years.

Procuration fee: 0.25% minimum £150, maximum £250 payable to registered introducers.

Arrangement fee: Booking fee £100, completion fee £195.

Other: No tie-in after discount period.

Contact: 0500 295 500

Pink Home Loans

Product: Buy-to-let discount mortgage

Funded by: Birmingham Midshires

Description: 0.66% discount for three years.

Rate: 5.29%

Max LTV: 85%

Redemption penalty: 4% in year one and 3% in years two and three.

Procuration fee: 0.5%, minimum £200, maximum £5,000.

Arrangement fee: £299

Other: Daily interest, monthly rental must cover 125% mortgage payments at SVR on interest-only basis.

Contact: www.pink.uk.net

DISCOUNT

Legal & General

Product: Stepped discount mortgage

Description: 2.5% discount from SVR in year one and 1.82% discount in year two.

Rate: 3.45%

Max LTV: 95%

Redemption penalty: Six months’ interest on full repayment until 30/04/04, up to 10% repayment allowable yearly without incurring a charge.

Procuration fee: Average £200

Arrangement fee: £100

Other: Daily interest.

Contact: 0845 300 9977

Mercantile Building Society

Product: Five-year discount mortgage

Description: 0.8% discount to 95% LTV, 1.05% to 90% LTV and 1.5% to 75% LTV.

Rate: 5.24%, 4.99% and 4.34%

Max LTV: 95%

Redemption penalty: Discount and benefits reclaimed up to five years, capital repayments up to 10% annually without penalty.

Procuration fee: 0.25% minimum £150, maximum £250 payable to registered introducers.

Arrangement fee: None

Other: Remortgage ‘ free solicitors costs when using a nominated MBS solicitor.

Contact: 0500 295 500

Pink Home Loans

Product: Discount flexible mortgage

Funded by: Britannic Money

Description: 0.65% discount for three years.

Rate: 4.59% up to 75% LTV, 4.84% up to 85% LTV, 5.09% up to 95% LTV.

Max LTV: 95%, 80% if self-cert option taken.

Redemption penalty: 1.5% of the amount repaid for three years, only charged if loan is paid in full.

Procuration fee: 0.35%

Arrangement fee: None

Other: Free remortgage legal service, £250 cashback, no MIG.

Contact: www.pink.uk.net

Yorkshire Building Society

Product: Two-year stepped rate discount mortgage

Description: 2.5% discount for first year, then 0.5% discount for the second year.

Rate: 2.95%

Max LTV: 95%

Redemption penalty: 3% payable in years one and two, part repayments allowed without charge.

Procuration fee: Negotiable

Arrangement fee: £295

Other: Free mortgage payment insurance for six months, daily interest, over/underpayment and payment holidays available.

Contact: 0845 1200 899

FIXED RATE

Chelsea Building Society

Product: Two-year fixed rate mortgage

Description: Fixed until 1/6/2004.

Rate: 4.99%

Max LTV: 95%

Redemption penalty: 3% on all capital repaid before 1/6/2004 ‘ unless replaced by a new Chelsea BS mortgage on a different property.

Procuration fee: Negotiable

Arrangement fee: £295

Other: A fixed administration fee of £245 of which £195 is paid at time of application ‘ remaining added to loan.

Contact: 0800 291 291

Pink Home Loans

Product: Fixed rate adverse credit mortgage ‘ plan G

Funded by: Mortgages plc

Description: Fixed to 31/3/2003.

Rate: 5.45%

Max LTV: 85%

Redemption penalty: 6% for three years.

Procuration fee: 1%, minimum £500, maximum £5,000.

Arrangement fee: £395

Other: Unlimited CCJs, maximum six months arrears at application with maximum of three in the last three months, full status and self-cert.

Contact: www.pink.uk.net

Product: Fixed rate buy-to-let mortgage ‘ plan H

Funded by: Mortgages plc

Description: Fixed to 31/3/2003.

Rate: 5.45%

Max LTV: 80%

Redemption penalty: 6% for three years.

Procuration fee: 1%, minimum £500, maximum £5,000.

Arrangement fee: £395

Other: Rent to exceed 130% of mortgage repayment.

Contact: www.pink.uk.net

Product: Fixed rate 100% mortgage

Funded by: Mortgage Express

Description: Fixed to 3/6/2007.

Rate: 6.24%

Max LTV: 105%, 102% for first- time buyers.

Redemption penalty: Six months’ interest at fixed rate until 3/6/2007.

Procuration fee: 0.3%

Arrangement fee: £325

Other: No MIG, purchase only.

Contact: www.pink.uk.net

Product: Fixed rate 100% mortgage

Funded by: Mortgage Express

Description: Fixed to 3/6/2005.

Rate: 5.99%

Max LTV: 105%, 102% for first- time buyers.

Redemption penalty: Six months’ interest at fixed rate until 3/6/2005.

Procuration fee: 0.3%

Arrangement fee: £325

Other: No MIG, purchase only.

Contact: www.pink.uk.net

Yorkshire Building Society

Product: Fixed rate mortgage

Description: Fixed for five years.

Rate: 5.89%

Max LTV: 95%

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

Procuration fee: Negotiable

Arrangement fee: £295

Other: Free mortgage payment insurance for six months, daily interest, over/underpayment and payment holidays available.

Contact: 0845 1200 899

Product: Fixed rate mortgage

Description: Fixed for two years.

Rate: 4.99% to 75% LTV, 5.49% to 95% LTV.

Max LTV: 95%

Redemption penalty: 3% payable in years one and two, part repayments allowed without charge.

Procuration fee: Negotiable

Arrangement fee: £295

Other: £500 cashback with 5.49% option, free mortgage payment insurance for six months, daily interest, over/ underpayment and payment holidays available.

Contact: 0845 1200 899

OFFSET

Yorkshire Building Society

Product: Offset account mortgage

Description: Bank of England base rate + 0.75% for five years.

Rate: 4.75%

Max LTV: 95%

Redemption penalty: 1% in years one and two, part payments allowed without charge.

Procuration fee: Negotiable

Arrangement fee: None

Other: 1% of the loan amount paid as cashback into offset account on completion.

Contact: 0845 1200 899

SELF CERTIFICATION

Pink Home Loans

Product: Self-cert fixed rate mortgage

Funded by: Mortgage Express

Description: Fixed until 3/6/2005.

Rate: 6.24%

Max LTV: 90%

Redemption penalty: Six months’ interest at fixed rate until 3/6/2005.

Procuration fee: 0.5%

Arrangement fee: £325

Other: Flexible options available, no MIG, first-time buyers and remortgages up to 80% LTV.

Contact: www.pink.uk.net

Product: Self-cert fixed rate mortgage

Funded by: Mortgage Express

Description: Fixed until 3/6/2007.

Rate: 6.35%

Max LTV: 90%

Redemption penalty: Six months’ interest at fixed rate until 3/6/2007.

Procuration fee: 0.5%

Arrangement fee: £325

Other: Flexible options available, no MIG, first-time buyers and remortgages up to 80% LTV.

Contact: www.pink.uk.net

The best of both worlds with Mortgage Next

Mortgage Next has launched a new product called the Aggregator Mortgage. Funded by Bristol & West, the mortgage splits 50/50 between a fixed rate and a variable rate product. It is intended to allow homebuyers the chance to take advantage of current rates at 1% above base rate for term, while fixing half the loan at 5.65% until 31 May 2007. The current aggregator rate is 5.33%.

Justine Tomlinson, director of marketing at Mortgage Next, said: ‘With bank base rates at their lowest for 50 years, people are keen to take advantage of the low variable rates on offer. However, such rates are predicted to rise later in the year, so fixed rate products may be more attractive in the long term. Increasingly, consumers are looking for flexibility to repay part of their mortgage at an earlier date, and the redemption free element of this mortgage enables this to happen. The Aggregator Mortgage offers home buyer the best of both worlds’ agreement.

Redemption penalties apply only to the fixed half, at 7% of the sum repaid until 2003, 6% until 2005 and 5% until 2007, plus a £100 administration fee, payable only on full redemption. The product carries a procuration fee of 0.3%.

Contact: 0845 130 2223

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