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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 one per cent above the Bank of England base rate.

It also has a completion fee of £299 and redemption fees of five per cent of the advance for the first three years of the mortgage, along with an administration fee of £100.

Over the past three years the British housing market has seen a swing away from fixed rate mortgages to variable rate products. In 1998 55 per cent of the number of mortgages sold were fixed rate, with 45 per cent being variable rate. By 2000 this had changed to 34 per cent being fixed rate and 66 per cent being variable rate.

According to Moneyfacts on May 9, 2001 the Mortgage Next product is not the most competitive two-year fixed rate mortgage. The two-year fixed rate mortgage from Northern Rock is the most competitive, with a fixed rate of 3.45 per cent for loans of up to 90 per cent of valuation for the first two years of the loan. This has a completion fee of £495 and redemption penalties of 4 per cent of the advance for year one, 8 per cent for year two, 6 per cent for year three, 4 per cent for year four, 2 per cent for year five and 1 per cent for year six.


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 […]

Pru bid for American General off

Prudential&#39s attempt to take over American General has failed after its £14bn bid was beaten by American International Group, the world&#39s largest insurance company.Pru will be receive an immediate termination payment of £419m from American General for breach of the takeover agreement reached earlier this year.A Pru spokesman says: ” American General has concluded the […]

Big six signing up with single-password portal

Six of the UK&#39s biggest financial players are to offer customers centralised access to their online services using one password and one platform in a deal with US specialist Yodlee. The six are thought to include Fidelity&#39s FundsNetwork, Egg, HSBC, Virginmoney and Barclays. The service, known as aggregation, will allow users to access everything from […]

&#39National IFAs first to multi-tie&#39

National IFAs will be first to become multi-tied if the proposed changes to polarisation are implemented, according to Misys IFA Services managing director Patrick Gale. Speaking at the annual conference of Misys network Countrywide last week, Gale predicted that national IFAs will be first to set up multitie salesforces because they are likely to be […]

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]


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