View more on these topics

Exclusive Connections moves beyond 100 per cent

Exclusive Connections has unveiled a flexible 100 per cent mortgage that has a 1 per cent discount for the first two years.

The mortgage has a current payable rate of 6 per cent and allows borrowers to overpay, underpay and take payment holidays. But they cannot make lump sum withdrawals.

Interest is calculated monthly and Exclusive Connections will lend an additional amount of up to 5 per cent of valuation for moving costs.

There is an extended tie in of one year, so borrowers who pay off the mortgage in the first three years must pay three months&#39 interest as a penalty. The extended tie-in is the main drawback. Similar 100 per cent mortgages such as Northern Rock&#39s together mortgage have no early redemption penalty, but the current payable rate is higher at 6.29 per cent.

According to Moneyfacts on August 9, 2001, Exclusive Connections is the least competitive mortgage of its type. The most competitive is from Private Label, which has a 2.01 per cent discount for two years, giving a current payable rate of 4.99 per cent.

Like the Exclusive Connections mortgage, borrowers who redeem in the first three years must pay three months&#39 interest as a penalty and again up to 5 per cent of valuation is allowed for moving costs. It has the same flexible features as Exclusive Connections, but also allows borrowers to make lump sum withdrawals and interest is calculated on a daily basis. This shows it is more flexible than Exclusive Connections in addition to its more competitive rate.

Recommended

Document download

One of the perennial problems for IFAs is making sure they have anadequate supply of fully up to date literature from product providers. Brochures, application forms, generic key features documents and many morechange on a regular basis and, with the advent of Saltr and the formaladoption of the new FSA rulebook at N2, there will […]

Burrows: will head annuity service

Annuity expert Billy Burrows is teaming up with actuary and pensionconsultant Aspen to set up a specialist annuity IFA. William BurrowsAnnuities will become part of Aspen&#39s fee-based subsidiary, AspenIndividual Clients. It will provide a mainly fee-based advisory service on all aspects ofannuities and income drawdown. Aspen says its decision to expand into theretirement income market […]

Barclays split offshore account

Barclays Private Clients is offering a high interest offshore savings account that is linked to the stockmarket.The high interest index linked deposit account is aimed at investors looking for high interest and capital growth and the security of a capital protected investment.The account has two elements — a high interest savings account and an index-linked […]

Critical issues to address on sales growth

Increased consumer awareness, the recognition of need and industry focushave all contributed to a rise in sales of critical-illness cover,particularly in the mid to late 1990s. Add to this the ABI statement ofbest practice which brings clarity to consumers when comparing products andit is good news all round. However, just as the successful sporting team […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com