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Five by five

BRISTOL & WEST MORTGAGES5.05% Five Year FixedType: Fixed-rate mortgageFixed term: Until March 31, 2010Fixed rate: 5.05%Minimum loan: £15,001Maximum loan: Up to 95% of valuation to a maximum of £150,000, up to 90% to £450,000, up to 75%of valuation subject to a maximum of £1mIncome multiples: Up to four times principal income plus second or 2.75 times jointArrangement fee: £399Conditions: Free valuation, free legal fees for remortgagesRedemption fee: 4% of the original loan until March 31, 2010Introducer’s fee: Refer to lenderTel: 0117 943 7755Bristol & West’ s 5.05 per cent five-year fixed-rate mortgage is available up to 95 per cent of valuation. London & Country mortgage specialist James Cotton feels this is a competitive rate. He says: “Five-year fixed rates have plummeted recently, with a number of them now below 5 per cent. This offering is just above that mark but it offers a free valuation and free legal work for remortgages. Those with loans of £200,000 or more may get the best value from the lower rates available but for others looking for stability over five years, this will represent a good deal.”

On the downside, Cotton mentions that there is no flexibility. He says:”Borrowers should make sure they are happy to be tied into this deal for five years without the ability to make penalty-free overpayments. Interest on this scheme is calculated on an annual interest basis rather than daily.”

Cotton concludes that Derbyshire, Leeds & Holbeck and Cumberland , which offer five-year fixed rates at 4.94 per cent, 4.95 per cent and 4.99 per cent respectively, are likely competitors to B&W.

BROKER RATINGSSuitability to market: GoodFlexibility: PoorCompetitiveness ofmortgage rate: GoodAdviser remuneration: AverageOverall 7/10

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