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Heritable takes a chance


Self-Cert Three-Year Fixed

Fixed-rate self-certification mortgage

Fixed term:
Until March 1, 2007

Fixed rate:

Minimum loan:

Maximum loan:
Up to 75% of valuation subject to a maximum of £400,000,
up to 70% of valuation subject to a maximum of £500,000

Income multiples:
Based on affordability calculation and credit score

Arrangement fee:
0.5% of loan amount subject to £500 minimum plus £399

Redemption fee:
5% of mortgage balance until March 1, 2007

Introducer&#39s fee:
0.5% of original loan

Tel: 020 7518 4224

Heritable Bank&#39s three-year fixed rate is available for loans up to 75 per cnet of valuation at a rate of 5.99 per cent until March 1, 2007.

London and Country mortgage specialist David Hollingworth points out that Heritable Bank&#39s self-certification rates work in a similar fashion to GMAC and The Mortgage Works. He says: “Rather than the borrower stating their income, they simply declare that the mortgage payments are affordable.”

Hollingworth points out that Heritable Bank, owned by Landsbanki Islands the National Bank of Iceland, launched into the UK mortgage market in 2003 so is something of a newcomer to the residential mortgage market. It has launched products on status, buy to let and self-certification.”

He says: “The three-year fixed rate at 5.99 per cent is available to 75 per cent LTV so is not the cheapest self-cert rate on the market, but it carries no extended redemption penalties. Adviser remuneration at 0.5 per cent is on a par with its peers. The rate is not the best but nor is it way out of line with other products. The rate is not helped by the fee structure with an arrangement fee of 0.5% payable (minimum £500) and a completion fee of £399.”

Looking at likely competitors to this offering Hollingworth says: “Bristol & West is strong in the self certification arena and currently offers a three-year fixed rate at 5.09 per cent with a £299 arrangement fee. Bank of Scotland also weighs in with a 5.35 per cent 3 year fix and GMAC is offering a rate of 5.49 per cent over two years through L&G Club. It will be interesting to see how this relatively new entrant develops.”


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

Overall 6/1


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