Exclusive Connections has introduced the semi exclusive fixed rate mortgage.
Funded by The Mortgage Business, the mortgage has a fixed rate of 5.99 per cent for loans of up to 95 per cent for employed clients and 85 per cent for self-employed clients. The fixed rate will last until August 31, 2004.
Self-employed applicants must have proof that they have been trading for a minimum of two years, although people applying for up to 80 per cent of valuation need only have been trading for one year. The mortgage has a redemption penalty of four months interest for the fixed rate period.
According to a recent report issued by Datamonitor, the self-certification market grew by 19 per cent from 1999 to 2000, with an estimated 8.3m people now being eligible for this type of mortgage.
Based on data from Moneyfacts on June 18, 2001, the most competitive three-year self-cert fixed rate mortgage on the market is from Private Label. This has a fixed rate of 5.95 per cent for loans of up to 85 per cent of valuation for the first three years of the mortgage. It also has a redemption penalty of 5 per cent of the advance during the fixed rate period.