Brokers have welcomed Woolwich’s City bonus mortgage for staff expecting big bonuses.
The lender says only people who want to borrow more than 500,000 need apply. The loan works as a discounted tracker with an offset facility that starts at 0.51 per cent below base rate, rising to 0.49 per cent above base rate in July 2007 for the life of the loan. Brokers believe Woolwich has found a niche in the market but warn the loan is only suitable for borrowers who regularly receive big bonuses. Brentchase Financial Services mortgage specialist Mike Fitzgerald says: “It is a very good deal but brokers must realise it is not for those who might get a bonus but for those who always get a bonus.” Woolwich head of mortgages Andy Gray says: “The key is it offers full offset facilities which could be of great help to customers who want to get into the market now. Most people expecting a big bonus in January or February will have a good idea if they are going to get one. The problem is it does not get paid until the new year and, if they want to buy a property now, they might be restricted by what they can borrow and choice of mortgage type. If they wait for the bonus, the property may have gone. “The beauty of this loan is customers can borrow now at a lower rate while they are waiting for the bonus to be paid. When they receive the bonus, they can offset against the loan.”View more on these topicsNews
On-Line Partnership looking to buy firms as profits soar by 65%
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GMAC chairman Stephen Knight believes lenders that fail to provide instant offers in future will see business wane. Knight predicts that ano-ther three or four lenders will have joined GMAC and Edeus by the end of next year in providing point of sale offers and brokers and packagers will get so used to Posos that […]
Crossed lines
Money Marketing likes to think of itself as a law-abiding title but it nearly caused a stir at Heathrow Airport this week after an ill-timed call to PMS managing director John Malone as he was going through security. Malone asked for the mortgage hack to call back later for fear of looking suspicious before going […]
Skandia says Government can’t justify Asp restrictions
The Government has failed to justify limiting the use of alternatively secured pensions and explain why offering them more widely could constitute abuse, says Skandia Life head of marketing Billy MackayThe Government says Asps are only designed for groups such as the Plymouth Brethren with religious objections to annuities but Mackay rejects its argument that […]
NATIXIS PORTFOLIO CLARITY – UK Portfolio Barometer
Natixis Global Asset Management’s quarterly Portfolio Barometer offers insights into UK financial advisers’ model portfolios and the allocation decisions they are making. Natixis’s Portfolio Research & Consulting Group works with financial advisers and other intermediaries to analyse and enhance their model portfolios and help them develop investor portfolios suited to today’s complex markets. The Portfolio […]
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