bank of scotland

Product range

Bank of Scotland (BoS) has an excellent and well deserved reputation for dealing competently with self-certification, buy-to-let and large loans. However, it also has a good mainstream residential proposition in terms of both underwriting and products.

Its ‘personal choice’ products offer excellent benefits. For purchase and remortgage, clients can borrow up to 90% loan to value (LTV). Stamp Duty and legal fees can be added to this loan and borrowers will also receive a chequebook facility after completion, which allows them to draw an initial 5% LTV after completion.

At 90% as above, the rate is at 1.19% over BBR for the lifetime of the loan. There is a £399 arrangement fee but no higher lending charge (HLC) and no early repayment charges (ERC).

At 85% the rate reduces to 0.89% over BBR (payrate 5.64%) and at 80% the rate reduces again to 0.69% over BBR (payrate 5.44%).

The personal choice range offers full flexible facilities including lump sum overpayments, underpayments and payment holidays. Bearing in mind the ability to add Stamp Duty and legal fees, coupled with the additional 5% drawdown facility and absence of HLC, this range offers excellent benefits.

BoS has also added two excellent full status remortgage products to its range. Available to 60% LTV, clients can choose from a two-year tracker or two-year fixed rate at 4.89%. Both rates have an arrangement fee of £399 and ERCs of 2%/1% during the fixed or tracker period. These two rates also include a free property assessment and free remortgage legal fees.

BoS is not necessarily the first choice lender for standard residential lending. However, these two remortgage products are excellent and the range of benefits offered by the personal choice schemes are significant. With an easy to use online system and improving service standards, BOS remains one of the leading all-round lenders in the UK.

portman bs

Product range

Portman has a habit of consistently offering a low fixed rate product with an extended tie-in period and this option remains. The rate is 2.29% fixed to 31 July 2007 and is available to 95% LTV. The significant downside to this product is the ERCs apply to 31 July 2011. The ERCs are significant as well, starting at a huge 7% to 31 July 2008 and the reducing to 6%/4%/2% during each 12-month period to 31 July 2011. There is a £599 arrangement fee and a HLC applies above 90% borrowing.

The five-year fixed rate option offers a fixed rate of 4.68% to 31 July 2010. There is a £499 acceptance fee and ERCs of 5% to 31 July 2010. However, there is the facility to repay up to 5% of the outstanding capital balance each year without incurring an ERC.

The final product available is a base rate tracker scheme. This offers a rate of 4.99% equivalent to 0.24% over BBR to 31 July 2007. This product has a £399 arrangement fee although there are no ERCs at any time.

nationwide

Fixed rate range

Nationwide has reduced its residential fixed rate products across its whole range. Two-year fixed rates have reduced by 0.26% and now start at 4.69% to 90% LTV. The three and five-year fixed rates have been reduced by 0.2% and start from 4.89%. Finally, 10-year fixed products have been reduced by 0.1% and they now begin at 4.99%. There is a reservation fee of £389 for all these deals.

The fixed rate range with no reservation fee has also been reduced and the rates are 0.4% higher across the range than the schemes above. These start at 5.09% to 90% LTV for the two-year rate and increase to 5.89% depending on the LTV and length of fixed rate product.