Exclusive Connections has introduced the self-cert fixed rate mortgage.
Funded by Bristol & West, the mortgage is aimed at self-employed people who have trouble getting a mortgage because they have difficulty proving how much they earn. However applicants must be able to prove a three-year clean credit history.
The mortgage has a fixed rate of 5.89 per cent for the first three years for up to 75 per cent of valuation. After the fixed rate period the mortgage will revert to a level of 1.75 per cent above the Bank of England base rate for the term of the mortgage.
Exclusive Connections has fixed the product's redemption penalties at 5 per cent of the advance for the first two years of the mortgage and then 4 per cent for the third year. It also has a £299 administration fee.
Looking at the market, the mortgage is not the most competitive three-year fixed rate self-cert mortgage available. According to Moneyfacts on June 4, 2001, this is the three-year self-cert fixed rate mortgage from the Bank of Ireland. This has a fixed rate of 5.79 per cent for the first three years for loans of up to 75 per cent of valuation. After the fixed rate period the mortgage reverts to 1.75 per cent above the Bank of England base rate. The mortgage also has redemption penalties of 5 per cent of the advance during the fixed rate period. In contrast with the Exclusive Connections product, the Bank of Ireland mortgage has no arrangement fee.