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Mortgage of the week

Amanda Jarvis

January 9, 2006

Short Term Fixed Rate

Northern Rock are offering a fixed rate deal until the 1st Feb
2008 at a rate of 4.45 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.59 per cent. The overall cost for comparison is 6.40 per cent APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the fixed rate period. There is a valuation fee of £455 and an arrangement fee of £695 that can be added to
the loan.

Long Term Fixed Rate
The Alliance & Leicester is offering a fixed rate deal until the 28th
February 2011 at 4.79 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 5.25 per cent. The overall cost for comparison is 5.3 per cent APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the fixed rate period. There is a valuation fee of £280 and an arrangement fee of £495 that can be added to
the loan.

Short Term Discount

The Norwich & Peterborough is offering a variable rate two-year discounted scheme at a current interest rate of 3.30 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.3 per cent. The overall cost for comparison is 5.90 per cent APR. An Early Repayment Charge is
payable if you repay all or part of this mortgage within 5 years. There is a valuation fee of £225 and no arrangement fee.

Long Term Discount

The Nottingham Building Society is offering a five-year discounted scheme, at a current rate of 4.62 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.39 per cent. The overall cost for comparison is 6 per cent APR. An Early Repayment Charge is payable if you repay all or part of this mortgage within five years.
There is no valuation fee, but an arrangement fee of £450 that can be added to the loan.

Cashback

BM Solutions is offering a 10 per cent cashback variable rate deal at 6.54 per cent. The overall cost for comparison is 6.9 per cent APR. There is a requirement to repay the cashback on early repayment of the loan within ten years of the start date. There is a valuation fee of £350 and an arrangement fee of £695 which can be added to the loan.

Buy to Let

BM Solutions is offering a buy to let deal fixed till 1st March 2008 at 4.99 per cent. SVR is 6.45 per cent with an APR of 6.6 per cent. An Early Repayment Charge is payable if you repay all or part of this mortgage during the period of the deal. There is a valuation fee of £350, and an arrangement fee of £1500 that 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 Halifax is offering a tracker deal until the 31st March 2008 at a rate of 4.54 per cent then reverting to the standard variable rate for the remaining term of the mortgage, currently 6.5 per cent. The overall cost for comparison is 6.3 per cent APR. An Early Repayment Charge is
payable if you repay all or part of this mortgage during the discount period. This mortgage offers a free valuation, free legal work but an arrangement fee of £499, which can be added to the loan.

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

Tracker

The best tracker this week is from the Alliance & Leicester, with a two-year deal at variable base rate minus 0.11 per cent. This equates to 4.39 per cent, reverting to the standard variable rate for the remaining term of the mortgage, currently 5.25 per cent. The overall cost for comparison is 5.3 per cent. An Early Repayment Charge is payable if you repay all or part of this mortgage within the first 24 months. There is a valuation fee of £280 and an arrangement fee of £495, which can be added to the mortgage.

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.


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