View more on these topics

Flexi buy to let discount for L&G

Legal & General&#39s buy to let flexi variable discount mortgage is a flexible mortgage which also has a stepped discount over three years. It has a 1 per cent discount in year one, 0.75 per cent in year two and 0.5 per cent in year three. This gives a current payable rate of 6.74 per cent.

This mortgage has a maximum loan to valuation of 75 per cent, which is common for this type of mortgage. The flexibility of the mortgage is good as underpayments, overpayments and lump sum withdrawals can be made, payment holidays can be taken and interest can be calculated daily.

On the down side, there are early redemption penalties in the first three years, but these are also stepped. In year one, three per cent of the loan must be repaid, two per cent must be repaid in year two and one per cent must be repaid in year three.

According to Moneyfacts on December 1, 2000, there are no flexible buy to let mortgages with a three year discount currently available, so this mortgage may carve its niche as interest in investment mortgages continues to flourish.

Recommended

Video reveals Darling&#39s u-turn on polarisation

The government has been accused of hypocrisy and of making a U-turn over its pre-election stance in support of polarisation. The allegations surfaced after Alistair Darling, then Shadow Treasury chief secretary and now Social Security secretary appeared on a financial services video in 1996 saying if polarisation was not broke, why fix it. He also […]

[Polarisation] Question time for the industry

When we launched the Poles Apart Campaign some four months ago, we scripted 10 questions that demand ans wers before any change to the current distribution system occurs. We posted copies of the questions to FSA chairman and chief executive Sir Howard Davies and economic secretary to the Treasury Melanie Johnson. We asked for both […]

Newton plugs into tech market

Roberts says: “This product will provide opportunities to market it to retired clients who are struggling on the income received from building societies and other deposit accounts. It may also be of interest to investors with Tessas maturing, many of which will be coming to the end of their second five years from January 2001 […]

New chief execs for Lambeth and Dunfermline

Dunfermline and Lambeth Building Societies have both announced the appointment of new chief executives. Dunfermline’s David Smith will retire in March next year, he has been director and chief executive of the society since 1987 and chairman of the building societies association since last year. Smith will be replaced as chief executive by Graeme Dalziel […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment