Private Label is launching a two-year fixed-rate flexible mortgage.
The flexible fix is fixed at 3.49 per cent until March 2002. It offers borrowers the ability to overpay, underpay, take payment holidays and also has lump-sum withdrawal facilities. Loans are available up to 90 per cent loan to value on home purchases or 80 per cent LTV for remortgages.
Underwriting is based on a credit score done by the len der free-of-charge before an application fee is committed and income references are not necessary.
There is a non-status self-certification option for an extra 1 per cent on the fixed rate to a maximum of 75 per cent LTV for house purchase or remortgages.
The loan has an arrangement fee of £325, added to the loan at completion. There are no compulsory insurances and it is free of mortgage indemnity guarantees.
The procuration fee is 0.45 per cent of the loan and there sis a redemption penalty of three months' interest before March 2004.
Director of marketing Tony Fisher says: “Lenders shy away from offering fixed rates with flexible mortgages because of funding difficulties like overpayments and lump-sum withdrawals. We have solved this problem.”