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Product round-up

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  • 17/06/2002
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Each fortnight we bring you the key features of recently launched or relaunched mortgage products

BUY TO LET

Buy To Let Processing Centre

Product: ‘Gold’ buy-to-let tracker

Funded by: Property Investment Mortgages and Verso

Description: 1.15% over the three-month Libor .

Rate: 5.35%

Max LTV: 85%

Redemption penalty: None

Procuration fee: 0.5%

Arrangement fee: £90

Other: No valuation fees.

Contact: 029 2076 7744 or

www.buytoletprocessing.com

Pink Home Loans

Product: Buy-to-let discount tracker mortgage

Funded by: Verso

Description: 0.73% discount of BBR+1.98% for three years.

Rate: 5.25%

Max LTV: 85%

Redemption penalty: 5% of amount repaid for three years.

Procuration fee: 0.25%

Arrangement fee: 1% of advance.

Other: Available via direct submission, no MIG, daily interest.

Contact: www.pink.uk.net

Product: Buy-to-let stepped discount mortgage

Funded by: Legal & General Bank

Description: 1.25% discount in year one, 0.75% in year two, 0.5% in year three, underlying variable rate is 5.74%.

Rate: 4.49%

Max LTV: 80%

Redemption penalty: 4% of original loan amount in year one, 3% in year two, 2% in year three, only charged on full redemption.

Procuration fee: 0.25%

Arrangement fee: £195

Other: Cashback of £250, valuation fee refund.

Contact: www.pink.uk.net

Product: Buy-to-let fixed rate mortgage

Funded by: Mortgage Express

Description: Fixed until 3/6/2003.

Rate: 1.99%, underlying rate is BBR + 1.75%.

Max LTV: 85%

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

Procuration fee: 0.5%

Arrangement fee: 1% of loan.

Other: Maximum borrowing £1m.

Contact: www.pink.uk.net

CAPPED

Coventry Building Society

Product: Capped rate mortgage

Description: Capped at 5.99% until 30/9/2007.

Rate: 4.99% (0.76% discount), minimum rate payable 4%.

Max LTV: 95%

Redemption penalty: Six months’ interest to 30/9/2007.

Procuration fee: Negotiable

Arrangement fee: £295

Other: Free remortgage transfer service, free valuation.

Contact: 0845 766 5522

Product: Capped rate mortgage

Description: Capped at 5.75% until 31/1/2005.

Rate: 4.49% (1.26% discount), minimum rate payable 3.74%.

Max LTV: 95%

Redemption penalty: Three months’ interest to 31/1/2005.

Procuration fee: Negotiable

Arrangement fee: £295

Other: Free remortgage transfer service, free valuation.

Contact: 0845 766 5522

Coventry Building Society

Product: Capped rate remortgage

Description: Capped at 5.75% until 31/1/2005.

Rate: 4.49% (1.26% discount), minimum rate payable 3.74%.

Max LTV: 95%

Redemption penalty: Three months’ interest to 31/1/2005.

Procuration fee: Negotiable

Arrangement fee: £95

Other: Free remortgage transfer service, free valuation.

Contact: www.remortgages.com

Product: Capped rate remortgage

Description: Capped at 5.99% until 30/9/2007.

Rate: 4.99% (0.76% discount), minimum rate payable 4%.

Max LTV: 95%

Redemption penalty: Six months’ interest to 30/9/2007.

Procuration fee: Negotiable

Arrangement fee: £145

Other: Free remortgage transfer service, free valuation.

Contact: www.remortgages.com

GMAC RFC

Product: Capped rate tracker mortgage

Description: Tracks BBR + 0.95%, capped at 5.29% until May 2005.

Rate: 4.95%

Max LTV: 90%

Redemption penalty: 4% of amount redeemed until 1/5/2003, 3% until 1/5/2005, nil thereafter.

Procuration fee: 0.35%

Arrangement fee: £395

Other: Express status lending and no MIG. One CCJ or default of less than £300 or one month’s arrears in the last 12, considered, if satisfied. On completion the mortgage will transfer to the Leeds & Holbeck BS without change in terms or conditions.

Contact: 01344 477 477

DISCOUNT

Cheltenham & Gloucester

Product: Large loan discount mortgage

Description: For loans over £100,000, discount of 1.75% of C&G SVR until 31/12/2005.

Rate: 4.2%

Max LTV: 80%

Procuration fee: £500 for £100,000 to £250,000 before 31 July, £1,000 for £250,000 plus before 31 July.

Arrangement fee: £299

Other: Remortgages ‘ free legals in-house, or £150 to use own solicitor.

Contact: 01452 373187

Coventry Building Society

Product: Discount mortgage

Description: 1.26% discount off SVR to 31/1/2005.

Rate: 4.49%

Max LTV: 95%

Redemption penalty: Three months’ interest to 31/1/2005.

Procuration fee: Negotiable

Other: Free valuation, no mortgage indemnity fees, purchase only.

Contact: 0845 7665522

Pink Home Loans

Product: Flexible discount base rate tracker mortgage

Funded by: The Mortgage Business

Description: 0.5% discount for 12 months on underlying base rate of BBR + 1.5%.

Rate: 5%

Max LTV: 85%

Redemption penalty: None

Procuration fee: 0.5%, maximum £2,500.

Arrangement fee: £299

Other: Flexible mortgage with daily interest.

Contact: www.pink.uk.net

FIXED

Chelsea Building Society

Product: Two-year fixed rate mortgage

Description: Fixed until 2/9/2004.

Rate: 4.99%

Max LTV: 95%

Redemption penalty: 3% of all capital repaid until 2/9/2004 unless replaced by another Chelsea mortgage.

Procuration fee: Existing arrangements apply ‘ contact society.

Arrangement fee: £245, £195 paid at application.

Other: For direct business only ‘ free legal fees or £200 contribution.

Contact: 08702 404 808

Lambeth Building Society

Product: Fixed rate mortgage

Description: Fixed to 1/8/2003.

Rate: 2.99%

Max LTV: 95%

Redemption penalty: 5% until 1/8/2003 on full or partial redemption. No redemption if replaced by another Lambeth BS mortgage.

Procuration fee: Contact lender

Arrangement fee: £95 on application, £295 on completion.

Contact: 0845 053 3003

Pink Home Loans

Product: Fixed rate mortgage

Funded by: Mortgage Express

Description: Fixed until 3/6/2004.

Rate: 4.79%, underlying rate is BBR + 1.5% to 75% LTV, BBR + 1.75% to 95% LTV.

Max LTV: 95%

Redemption penalty: Six months’ interest at underlying variable rate until 3/6/2004.

Procuration fee: 0.3%

Arrangement fee: £325

Other: No MIG, flexible options available, overpayments, underpayments and draw-down facilities.

Contact: www.pink.uk.net

SELF BUILD

BuildStore

Product: BuildLoan self-build

Funded by: Verso

Description: Self-certification, BBR + 1.25% tracker.

Rate: 5.25%

Max LTV: 95% of both land and construction costs, but maximum of 85% of final expected LTV.

Redemption penalty: 3% in first year, 2% in second year and 3% in third year.

Procuration fee: £200

Arrangement fee: £195

Other: Available to employed, self employed and contract workers. Maximum loan is £300,000 (£500,000 up to 75% LTV).

Contact: 0870 870 9499

TRACKER

Cheltenham & Gloucester

Product: Large loan BBR tracker mortgage

Description: For loans over £100,000, BBR + 0.5% until 31/12/2005.

Rate: 4.5%

Max LTV: 80%

Redemption penalty: None

Procuration fee: £500 for £100,000 to £250,000 before 31 July, £1,000 for £250,000 plus before 31 July.

Arrangement fee: £299

Other: Remortgages ‘ free legals in-house or £150 to use own solicitor.

Contact: 01452 373 187

Norwich & Peterborough

Product: Spanish BBR tracker mortgage

Description: BBR + 1.25% for five years, after five years Spanish Home Loans SVR applies (currently 6%).

Rate: 5.25%

Max LTV: 75%

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

Procuration fee: 0.25%, minimum £125, and maximum £1,000.

Arrangement fee: £250

Other: Overpayments can fund underpayments and payment holidays. No compulsory insurance.

Contact: 01733 372 006

New graduate deal from Scottish Widows

Scottish Widows Bank has launched a product aimed at graduates struggling to get on the property ladder.

The Graduate Mortgage allows individuals to borrow up to 100% LTV plus another 2% to cover associated costs. This 2% must be repaid within the first 10 years of the mortgage. The mortgage is a BBR tracker with a 0.25% discount off the BBR for the first six months, with a rate of 3.75%. It then reverts to BBR+1.25%.

The product is available to those who graduated from a British university in the last five years and have been employed for the last year.

Gordon Brown, business development manager of Scottish Widows Bank, said: ‘By offering this 102% mortgage we are aiming to help graduates onto the property ladder quickly. Traditionally, on leaving university graduates don’t have a deposit and struggle to enter the property market. While saving money for a deposit prices may continue to increase and the property ladder can remain just out of their grasp.’

Redemption penalties are set at the repayment of the free valuation and legal fees in the first three years. The product carries no arrangement fee.

Contact: 0845 845 0110

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