New mortgage deals hit the market

Amanda Jarvis

November 9, 2001

The MarketPlace is offering first-time buyers with a small deposit or those looking to remortgage, a two-year discount of 2.5 per cent below the lender’s SVR, which gives an initial interest rate of 3.75 per cent. The rate will revert to the Bank of England base rate plus 1.75 per cent for the remainder of the loan.

Mortgages with a loan to value of 75 per cent or less qualify for an even lower rate of 3.5 per cent which then reverts to BBR plus 1.5 per cent.

The lifetime tracker product means borrowers benefit from a guarantee that any further cuts in the base rate will be passed to them in full.

The product is MIG free up to 95 per cent LTV, which will save first-time buyers approximately £1,000 on a £60,000 loan.

The deal, funded by Mortgage Express, is available for both homebuyers and remortgages and includes flexible features such as payment holidays, income drawdown, overpayments and underpayments.

Interest is calculated daily, and an arrangement fee of £325 applies.

David Bitner, mortgage technical manager at the MarketPlace said: “Not only will the borrower save the expensive cost of a mortgage indemnity premium, but because the mortgages track Bank Base Rate for the life of the loan, any further rate cuts will be passed on in full to borrowers.”

Other new products launched include an extension to Standard Life Bank’s Freestyle range with the launch of two new seven-year fixed rate mortgages.

The rate of interest is 5.69 per cent on mortgages up to 90 per cent of the property value or on mortgages of 90-95 per cent, 5.89 per cent. John Gill, finance director of Standard Life Bank, said: “For customers who are unsure whether to chose a fixed or a variable rate at this time, Standard Life Bank offers them the flexibility of doing both. All our fixed-rate products, including the new seven-year deals, can be used to cover a portion of the mortgage while the rest could be taken at a discounted variable rate.”

The seven-year fixed rate mortgages are available to UK residents over eighteen years old for loans over £25,000. Repayments can be interest only, capital repayment or a combination of both.

The bank makes a significant contribution towards legal fees and there is a total refund of valuation costs on completion of the mortgage.

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