Mortgage of the week

19 November 2007

19 November, 2007

Short-term Fixed Rate

Nationwide is offering a two-year fixed rate deal, at a rate of 5.72%, reverting to its standard variable rate for the remaining term of the mortgage, currently 7.24%. The overall cost for comparison is 7.4% APR. An Early Repayment Charge is payable if you repay all or part of the mortgage during the fixed rate period. There is a valuation fee of £295 and an arrangement fee of £999.

Long-term Fixed Rate

Nationwide is also offering a five-year fixed rate, at a rate of 5.63%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.24%. The overall cost for comparison is 6.9% APR. An Early Repayment Charge is payable if you repay all or part of the mortgage during the fixed rate period. There is a valuation fee of £295 and an arrangement fee of £499 that can be added to the loan.

Short-term Discount or Tracker

Nationwide is offering a two-year tracker scheme at the Bank of England base rate minus 0.07%, equating to 5.68%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.24%. The overall cost for comparison is 7.3% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage within two years. There is a valuation fee of £295 and an arrangement fee of £599 that can be added to the loan.

Long-term Discount or Tracker

Alliance & Leicester is offering a five-year discounted scheme at 1.7% off its standard rate, equivalent to a current rate of 6.19%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.89%. The overall cost for comparison is 7.5% APR. There is an early redemption penalty upon repayment of this loan up to the end of the discount period.

There is valuation fee of £280 and an arrangement fee of £149 that can be added to the loan.

Cashback

Abbey is offering a five-year tracker mortgage at the Bank of England Base Rate plus 1.54%, currently 7.29%, with a 5% cashback on completion. The overall cost for comparison is 7.9% APR. There is a requirement to repay the cashback on early repayment of the loan within the incentive period. There is a free valuation and no arrangement fee.

Buy-to-let

BM Solutions is offering a fixed rate deal until the 1 March 2010 at a rate of 5.25%, reverting to its standard variable rate, currently 7.75%, at the end of the period. The overall cost for comparison is 7.8% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the first two years of the loan. There is a valuation fee of £390, while the arrangement fee of £2500 can be added to the loan.

Remortgage

For those looking to remortgage, Nationwide is offering a tracker at the Bank of England Base Rate plus 0.48% for two years, currently equating to 6.23%, reverting to the standard variable rate of 7.24% for the remaining term of the mortgage. The overall cost for comparison is 7.3% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the fixed rate period. This mortgage offers a free valuation, free legal work and no arrangement fee.

Lifetime Tracker

Norwich & Peterborough is offering a lifetime tracker deal at the Bank of England Base Rate plus 0.34% for the full term of the loan, currently equating to 6.09%. The overall cost for comparison is 6.4%. There is no Early Repayment Charge on this loan, but there is a valuation fee of £220 and an arrangement fee of £499, which can be added to the mortgage.

100 per cent Mortgage

Mortgage Express is offering a tracker deal at Bank of England Base Rate plus 0.84% for two years, currently equivalent to 6.59%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.75%. The overall cost for comparison is 7.9% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the discount period. There is no valuation fee, but an arrangement fee of £999 that can be added to the mortgage.

Capped Rate Mortgage

Skipton Building Society is offering a tracker mortgage at a current rate of 6.19%, capped until 30 November 1010 at a maximum rate of 6.44%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.14%. The overall cost for comparison is 7.3% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the capped rate period. There is a valuation fee of £220, and an arrangement fee of £599 that can be added to the loan.

Figures based on £150,000 purchase price or value and £100,000 repayment mortgage over 25 years. All figures are subject to revision, but current at time of going to press.