Mortgage of the week

28 August 2007

28 August, 2007

Short-Term Fixed Rate

Nationwide is offering a two-year fixed rate deal, at a rate of 5.78%, reverting to the 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 offering a five-year fixed rate deal, at a rate of 5.98%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.24%. The overall cost for comparison is 7.1% 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%, equating to 5.39%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.74%. The overall cost for comparison is 7.7% 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

Norwich & Peterborough is offering a five-year discounted scheme at 2.15% off its standard rate, equivalent to a current rate of 5.59%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.74%. The overall cost for comparison is 7.1% 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

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 two-year tracker buy-to-let deal at the Bank of England base rate minus 0.76%, equating to 4.99%, reverting to their 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 £2499 can be added to the loan.

Remortgage

For those looking to remortgage, the Bank of Scotland is offering a tracker until 31 October 2009 at the base rate plus 0.24%, currently 5.99%, reverting to the standard variable rate of 8.1% for the remaining term of the mortgage. The overall cost for comparison is 8.0% 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 0.24% for the full term of the loan, currently equating to 5.99%. The overall cost for comparison is 6.3%. 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% Mortgage

Mortgage Express is offering a fixed rate deal at 6.25% until 31 October 2009, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.75%. 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 discount period. There is no valuation fee, but an arrangement fee of £1499 that can be added to the mortgage.

Capped Rate Mortgage

Accord Mortgages is offering a tracker mortgage at a current rate of 6.04%, capped for three years to a maximum rate of 6.29%, reverting to the standard variable rate for the remaining term of the mortgage, currently 7.75%. The overall cost for comparison is 7.7% 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 £260, and an arrangement fee of £995 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.