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Flexible is best for Legal & General

Legal & General is targeting the flexible mortgage market with the introduction of the three year fixed rate flexible mortgage.

The mortgage has a fixed rate of 5.25 per cent for the first three years of the mortgage, for loans of up to 75 per cent of valuation. At the end of the fixed rate period the mortgage will revert to Legal & General&#39s standard variable rate, which on April 23, 2001 was 6.5 per cent. It is aimed at first time buyers and people who are looking to remortgage their property.

The three-year fixed rate mortgage includes the ability to overpay, underpay, take payment holidays and lump sum withdrawals. Interest is calculated daily. The mortgage has redemption penalties of three per cent of the advance in year one, two per cent in year two and one per cent in year three.

According to Moneyfacts the Legal & General product is one of the most competitive three year fixed rate flexible mortgages on the market on April 23, 2001. The 5.25 per cent fixed rate mortgage from Pink Home Loans is the only other mortgage that can compete. The Pink Home Loans mortgage has a fixed rate of 5.25 per cent for the first three years for loans of up to 75 per cent of valuation. It also offers underpayments, overpayments, payment holidays, lump sum withdrawal and daily interest, while redemption penalties are three per cent of the advance during the fixed rate period.


Caution is urged on DB transfers into stakeholder

The ABI is issuing its members with guidance notes to curb fears of widespread misbuying as members of occupational pension schemes transfer their defined benefits to stakeholder. Life offices and IFAs fear that the requirement to allow transfers from all other pension arrangements to stakeholder creates the potential for misbuying by defined-benefit scheme members who […]

Britannia lowers mortgage rates for loyal clients

Britannia is introducing lower mortgage rates for loyal borrowers. Borrowers who have had their current mortgage for 10 years or more will pay a standard variable rate of 6.59 per cent and five-year borrowers will pay 6.79 per cent. The standard variable rate for borrowers still in their first five years is now 6.99 per […]

Children of the stakeholder revolution

Probably the most radical change included in the pension reforms that went live on April 6 is the fact that you no longer have to be earning to be able to take out a pension. This opens up whole new areas of pension marketing.However, opinion seems to be divided in respect of one potential new […]

A pension policeman&#39s lot is not a happy one

Given that the Occupational Pensions Regulatory Authority has limited resources, no records of schemes being designated and no means of checking which firms have more than four employees, the only method of policing stakeholder compliance appears to be employee whistleblowing. Do the panel feel this is adequate? – Name and address supplied. NB: Whistleblowing will […]

InFocus - thumbnail

In Focus — February 2015

Jelf Employee Benefits looks at the issue of paying anaesthetist fees when the patient had no chance to discuss or agree to them prior to care; and provides recommendations for avoiding this scenario.


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