Mortgage of the week

11 February 2008

11 February, 2008

MORTGAGE TALK'S PRODUCT OF THE WEEK

Nationwide is offering a lifetime tracker at the Bank of England base rate plus 0.68 per cent, currently equating to 5.93 per cent. The overall cost for comparison is 6.1 per cent APR.

The product offers a free valuation, free legal work and no arrangement fee.

Your existing lender may impose penalties if you switch your mortgage to a new lender.

FURTHER WEEKLY PICKS:

Short-term fixed rate

The Abbey is offering a fixed rate deal until 2 May 2010, at a rate of 5.62 per cent, reverting to its standard variable rate for the remaining term of the mortgage, currently 7.59 per cent. The overall cost for comparison is 7.6 per cent 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 £260 and an arrangement fee of £999.

Long-term fixed rate

The RBS is offering a fixed rate until 30 April 2013, at a rate of 5.54 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.69 per cent. The overall cost for comparison is 7.1 per cent 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 £200 and an arrangement fee of £599 that can be added to the loan.

Short-term discount or tracker

The Halifax is offering a two year tracker scheme at the Bank of England base rate plus 0.19 per cent, equating to 5.44 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.5 per cent. The overall cost for comparison is 7.5 per cent APR.

An Early Repayment Charge is payable if you repay all or part of this mortgage within the incentive period. There is a valuation fee of £315 and an arrangement fee of £999 that can be added to the loan.

Long-term discount or tracker

The Norwich & Peterborough is offering a five year discounted scheme at 1.55 per cent off its standard rate, equivalent to a current rate of 5.94 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.49 per cent. The overall cost for comparison is 7.1 per cent 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 £220 but no arrangement fee.

Cashback

The Abbey is offering a five year tracker mortgage at the Bank of England base rate plus 2.09 per cent, currently 7.39 per cent, with a 5 per cent cashback on completion. The overall cost for comparison is 7.8 per cent 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 1 June 2011 at a rate of 4.99 per cent, reverting to its standard variable rate, currently 7.25 per cent, at the end of the period. The overall cost for comparison is 7.3 per cent 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 £2,250 can be added to the loan.

Lifetime tracker

The Abbey is offering a lifetime tracker deal at the Bank of England base rate plus 0.59 per cent for the full term of the loan, currently equating to 5.84 per cent. The overall cost for comparison is 6.2 per cent.

There is no Early Repayment Charge on this loan, but there is a valuation fee of £260 and an arrangement fee of £999, which can be added to the mortgage.

100 per cent mortgage

The Bristol & West is offering a fixed rate deal until the 28th February 2011, at a rate of 6.09 per cent, reverting to the standard variable rate at the end of the term of the mortgage, currently 7.59 per cent. The overall cost for comparison is 7.6 per cent 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 £499 that can be added to the mortgage.

Capped rate

BM Solutions is offering a tracker mortgage capped until 1 June 2011 at a current rate of 5.64 per cent and a maximum rate of 5.89 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.69 per cent. The overall cost for comparison is 7.8 per cent APR.

An Early Repayment Charge is payable if you repay all or part of this mortgage during the capped rate period. There is a £365 valuation fee, plus an arrangement fee of £1250 which 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.

Your home may be repossessed if you do not keep up repayments on your mortgage.