Mortgage of the week

15 October 2007

15 October, 2007

Short Term Fixed Rate

The Woolwich is offering a fixed rate deal until the 30th November 2009, at a rate of 5.59%, reverting to its standard variable rate for the remaining term of the mortgage, currently 6.7%. 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 £995.

Long Term Fixed Rate

The Woolwich is also offering a longer term fixed rate deal until the 30th November 2011, at a rate of 5.59%, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.7%. The overall cost for comparison is 6.6% 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 £995 that can be added to the loan.

Short Term Discount or Tracker

The 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

The 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

The 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

Mortgage Express is offering a two year fixed rate deal until the 30th November 2009 at 5.34%, reverting to its standard variable rate, currently 7.5%, at the end of the period. 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 first two years of the loan. There is a valuation fee of £354, while the arrangement fee of £2500 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 Ireland is offering a fixed rate mortgage until the 31st December 2010 at 5.99%, reverting to the standard variable rate of 7.84% for the remaining term of the mortgage. The overall cost for comparison is 7.6% 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% 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 6.39% until the 30th November 2009, 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

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.

Your home may be repossessed if you do not keep up repayments on your mortgage.
In certain circumstances Mortgage Talk may charge a fee for arranging your mortgage. A typical fee could be up to £299.