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Good value from Pink and Abbey

Pink Home Loans

Abbey For Intermediaries 3.99% Two-Year Fixed

Type: Fixed-rate mortgage

Fixed term: Until July 2, 2011

Fixed rate: 3.99%

Minimum loan: £6,000

Maximum loan: Up to 75% of valuation subject to a maximum of £550,000

Income multiples: Based on affordability and credit score

Conditions: Capital repayments of up to 10% a year allowed without penalty,
free valuation for properties valued up to £2.5m, £250 cash back

Arrangement fee: £225 mortgage account fee

Redemption fee: 3% of mortgage balance in first two years, repayment of
cashback if mortgage repaid by April 2, 2011

Introducer¹s fee: 0.3% of the original loan

Tel: 08707 590170

This fee-free two-year fixed rate mortgage is available for loans up to 75
per cent within a maximum of £550,000.

London & Country Mortgages technical manager Richard Morea points out that this Abbey deal is available through a number of mortgage clubs, and is for purchases only.

“In this volatile market, the lack of arrangement fee and free valuation – unusual for a purchase product – add good value, making it the market leading fee free two-year fixed rate.”

He says that the fixed rate of 3.99 per cent is up to 1 per cent higher than
the cheapest two-year fixed, but the absence of fees, coupled with a £250
cashback, should make it a serious contender for most borrowers.

Looking at the negative features of the deal, Morea says: “The product is
for purchase customers only, but would suit remortgage borrowers equally

Identifying the main competitors, Morea says: “There are a number of lenders
such as First Direct, RBS and Mansfield Building Society, who have similar
deals with lower rates, although the fee-free nature of the Abbey deal will
see it compete well with these lower-priced deals.”


Suitability to market: Good
Competitiveness of rate: Good
Flexibility: Average
Adviser remuneration: Good

Overall 8/10


Societies in black books

Moody’s has downgraded most of the UK’s top building societies en masse as confidence in mutuals’ loan books and investments continues to slide.

Short notice

I hardly need to say what a dire decade this has been for the UK stockmarket. We have now had two falls of 50 per cent in the stockmarkets and many clients will be disillusioned. That said, the further the market falls, the more confident I become about the long-term future. The trouble is that I cannot tell you if the market will fall further from here or if we have already seen the bottom.

Broker Talkback

Is it right that critical-illness cover can be sold on a non-advised basis?

No 88%
Yes 12%


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