Mortgage of the week

6 August 2007

6 August, 2007

Short Term Fixed Rate

The Alliance & Leicester is offering a fixed rate deal until the 31st August 2009, at a rate of 5.79 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.64 per cent. The overall cost for comparison is 7.7 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 £280 and an arrangement fee of £999.

Long Term Fixed Rate

The Nationwide is offering a five year fixed rate deal, at a rate of 5.98 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.99 per cent. The overall cost for comparison is 6.8 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 £295 and an arrangement fee of £599 that can be added to the loan.

Short Term Discount or Tracker

BM Solutions is offering a two year tracker scheme at the Bank of England base rate minus 0.36 per cent, equating to 5.39 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.74 per cent. The overall cost for comparison is 7.7 per cent 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 £365 and an arrangement fee of £1000 that can be added to the loan.

Long Term Discount or Tracker

The Norwich & Peterborough is offering a five year discounted scheme at 2.15 per cent off its standard rate, equivalent to a current rate of 5.34 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.74 per cent. The overall cost for comparison is 7.10 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 and an arrangement fee of £599 that can be added to the loan.

Cashback

The Abbey is offering a five year tracker mortgage at the Bank of England base rate plus 1.54 per cent, with a 5 per cent cashback on completion. The overall cost for comparison is 7.9 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 two year tracker buy to let deal at the Bank of England base rate minus 0.76 per cent, equating to 4.99 per cent, reverting to their standard variable rate, currently 7.75 per cent, at the end of the period. 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 first two years of the loan. There is a valuation fee of £390, while the arrangement fee of £2499 can be added to the loan. There is no guarantee that it will be possible to arrange continuous letting of the property nor that the rental income will be sufficient to meet the cost of the mortgage.

Remortgage

For those looking to remortgage, the Bank of Scotland is offering a tracker until the 30th September 2009 at the base rate plus 0.19 per cent, currently 5.94 per cent, reverting to the standard variable rate of 8.1 per cent for the remaining term of the mortgage. The overall cost for comparison is 7.9 per cent 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. Your existing lender may impose penalties if you switch your mortgage to a new lender.

Lifetime Tracker

The Norwich & Peterborough is offering a lifetime tracker deal at the Bank of England base rate plus 0.24 per cent for the full term of the loan, currently equating to 5.99 per cent. The overall cost for comparison is 6.3 per cent. 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 fixed rate deal at 6.25 per cent until the 31st October 2009, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.75 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 discount period. There is no valuation fee, but an arrangement fee of £1499 that can be added to the mortgage.

Capped Rate Mortgage

The Skipton is offering a tracker mortgage at a current rate of 6.09 per cent, capped for three years to a maximum rate of 6.34 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.14 per cent. The overall cost for comparison is 7.0 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 valuation fee of £220, and an arrangement fee of £599 that can be added to the loan.