View more on these topics

Defaqto on Nationwide Two-Year Fixed

View of Defaqto insight analyst for banking Kevin Bray

Bray says: “It is difficult to compare Nationwide’s new product as its nearest competitors offer rates with higher LTVs, but the combination of low rate and a fee of £400 for purchase or £900 for re-mortgage is an attractive proposition.

“With the inevitable rise in interest rates getting closer a two year fixed rate at less than 3 per cent may be appealing to customers who wish to have certainty of their monthly payment.

“The product is only available on a repayment basis, allows a maximum of £500 overpayments per month without penalty and will revert to Nationwide’s higher standard mortgage rate which is currently 3.99 per cent.  A £99 non-refundable booking fee is payable which must be paid up front but the product fee can be added to the mortgage upon completion.

“Fixed rate pricing for two-year fixed rate mortgages is at its lowest level for 2 years for loans up to 60 per cent LTV, with the average rate now just 3.61 per cent. In June 2010 the average rate was 3.98 per cent while in June 2009 the average was higher still at 4.33 per cent It is unlikely that 2 year fixed rate mortgages will be priced lower in the immediate future and should the decision to raise interest rates come sooner many borrowers may have missed the opportunity to secure the best priced deals.”


TCF could be turned into rules

Treating customers fairly guidance could be turned into rules as part of the FSA’s work on product intervention. It reveals that some respondents to the discussion paper are unconvinced of the need for new product intervention rules and think the existing regulatory framework could be used instead, particularly through initiatives such as TCF and the […]

Defaqto issues platform due diligence guide

Defaqto has published a guide to platforms which gives advisers six key areas to consider when conducting their due diligence. The firm says financial strength, cost and charges, range of tax wrappers, investment vehicles offered, ancillary services and standard of service offered should all be considered when choosing a platform. The guide contains a list […]

Avelo appoints new chief tech officer

Avelo has appointed James Thomson as chief technology officer. Thomson was previously Odyssey Financial Technologies senior vice president, responsible for its front office banking technology platforms and wealth management products. Before Odyssey, Thomson worked for Misys where he focused on product management and development within the financial technology sector. Avelo managing director Chris Noblet says: […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm