Type: Self-cert discounted-rate mortgage
Discounted term: Two years
Payable rate: 5.48%
Minimum loan: £40,000
Maximum loan: Up to 85% of valuation subject to a maximum of £400,000, up to 80% of valuation subject to a maximum of £500,000, up to 70% of valuation subject to a maximum of £600,000, up to 60% of valuation subject to a maximum of £1m
Income multiples: Up to 4.75 times principal income plus second or four times joint
Arrangement fee: £799
Redemption fee: 5% of amount repaid in first two years
Introducer’s fee: Refer to lender
Tel: 0500 050020
This self-cert deal from Mortgage Express has a 1.52 per cent discount for two years, giving a payable rate of 5.48 per cent.
Highclere Financial Services partner Alan Lakey points out that Mortgage Express has a high visibility in the self-cert market and historically has offered a range of attractive products.
“This two-year discounted rate, giving a payable rate of 5.48 per cent for loans up to 85 per cent, is very attractive and the rate undercuts most of the market,” says Lakey. He believes the introducer’s fee also makes it worthwhile for the adviser.
Moving to the less appealing features of the deal, Lakey says: “As is becoming the norm, Mortgage Express has opted to offer an attractive rate attached to a reasonably high product fee at £799. Also, no overpayments are allowed and this reduces the flexibility.”
Freedom Lending’s 5.28 per cent deal with a £545 fee and Bristol & West’s 5.4 per cent deal with a £495 fee are suggested by Lakey as possible competitors.
Lakey concludes: “Unlike many lenders purportedly offering self-cert mortgage express only asks for pre-tax main income from business. This distinguishes it from Abbey and others that continue to ask for three years net profit figures. Unfortunately Mortgage Express does not extend this question to the employed.”
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Good