View more on these topics

Five year fixed Next in buy-to-let queue

Mortgage Next has joined forces with Mortgage Express to offer a buy to let five-year fixed rate mortgage.

The mortgage is available for loans of up to 80 per cent of valuation and is fixed at 6.35 per cent until June 3, 2006. An unlimited number of properties can be bought, within a total advance of £1m.If borrowers redeem in the first five years, they must pay a redemption penalty of six months interest.

According to Moneyfacts on May 11, 2001, the Royal Bank of Scotland&#39s five-year fixed-rate buy to let has a more competitive interest rate at 6.19 per cent until July 1, 2006. Like Mortgage Next, it is available for loans of up to 80 per cent of valuation and also has redemption penalties in the first five years.

Borrowers who choose to redeem early must pay five per cent of the advance in year one, reducing by one per cent each year to one per cent in year five. This means borrowers who redeem in year one would pay less with Mortgage Next, but those who redeem in year five would pay less with the Royal Bank of Scotland.

However, the Royal Bank of Scotland allows just two properties to be bought within limits within the total advance. Mortgage Next is more competitive because the number of properties are unlimited and this means there is less risk of all the properties in the portfolio being empty at the same time.

Recommended

Inside EDGE JIM GASKIN

There has been much debate about the economics of selling pensions and stakeholder has had an impact across the product range. An area that I think is of equal, if not greater, importance to IFAs is the ongoing advice needed after the initial purchase of a pension policy by their clients – the emphasis being […]

Whose life policy is it, anyway?

The news that online travel company Expedia has moved into profit a year ahead of schedule and that e-bookers is reporting smaller than expected losses suggests not all areas of the online community are suffering as much as others. It is particularly significant for the personal finance industry that travel is one of the markets […]

Fix is good for Mortgage Next

Mortgage Next is targeting first time homebuyers and people looking to remortgage their homes with the two-year fixed rate mortgage.The mortgage has a fixed rate of 5.58 per cent for loans of up to 95 per cent of valuation for the first two years of the mortgage. After the fixed rate period it reverts to […]

Aberdeen offers corporate bond discount

Aberdeen Unit Trust Managers is offering a 0.5 per cent discount on its range of corporate bond Isas until July 16. The funds include the Aberdeen Sterling Bond, Aberdeen High Yield Bond and Aberdeen Fixed Interest Unit Trusts.Aberdeen head of fixed interest Paul Reed says: “Falling short-term interest rates, benign inflation and the growing expectation […]

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