View more on these topics

Leeds & Holbeck offers premier buy-to-let rate

Leeds & Holbeck has introduced a five-year fixed-rate buy-to-let mortgage that is available for loans of up to 80 per cent of valuation.

The mortgage is fixed at 5.89 per cent until February 1, 2007 and borrowers who pay the mortgage off during this period must pay a penalty of six months&#39 interest in the first three years and three months&#39 interest in the remaining two years. Borrowers can overpay by up to 10 per cent a year without incurring the penalty.

Research from the Association of Residential Letting Agents (ARLA) shows that properties in London and the South East have higher capital values than in the rest of the country, but higher rental yields are to be found in the North. This is something borrowers may need to consider alongside their objectives for income, growth or a combination of both.

According to Business Moneyfacts on October 8, 2001, this mortgage is the most competitive of its kind. The next most competitive rate is from Yorkshire Bank, which is fixed at 6.39 per cent until September 30, 2006.

It is available for loans of up to 80 per cent of valuation and borrowers who pay off the mortgage within the first five years must pay an early redemption penalty. This amounts to 5 per cent of the sum repaid in the first two years which then reduces by 1 per cent each year until year five, when the penalty is 2 per cent of the sum repaid. This is higher than Leeds & Holbeck for all five years of the fixed-rate period.

Borrowers who redeem a £500,000 mortgage would pay £25,000 in years one and two with Yorkshire Bank, reducing to £10,000 in year five. Those with Leeds & Holbeck would pay £16,475 in the first three years and £8,237.50 in the remaining two years.


Downing Corporate Finance – Electra Kingsway VCT

Wednesday, 10 October 2001.Aim: Growth by investing initially in Electra investment trust, Electraactive management oeic, fixed interest securities then in unquotedstocks and AiM stocks.Minimum investment: Lump sum £5,000.Opening-closing date: October 2, 2001-December 14, 2001.Charges: Initial 5 per cent, annual 1.5 per cent in year one, 2 per centin year two, 2.5 per cent thereafter.Commission: Initial […]

Advisers must show the value of their service

IFAs must articulate the added value service they offer to consumers if they are to convince the regulator of the need for independent financial advice, according to Aifa director general Paul Smee.In his speech to the FSA polarisation open meeting, Smee said polarisation has been a force for good and without it IFAs could not […]

IFAs to offer bespoke portfolios

Client demand for advice on long-term investments and an increasing focus on wealth management have led the Misys network and national IFA Lighthouse to introduce portfolio design services.The Misys tool, part of the recently launched Misys Investment Services, has been developed solely for its network members and will recommend a client-specific portfolio of investments. The […]

Quarter of solicitors firms not stakeholder-compliant

Nearly 30 per cent of solicitors firms have not yet designated a stakeholder scheme, according to new research by Woolwich IFA Operations subsidiary Sedgwick Independent Financial Consultants. It surveyed over 2,000 firms to reveal that 28 per cent were not stakeholder compliant. It also showed 12 per cent were &#39not interested&#39 in considering stakeholder.

Neptune launches Japan Institutional Fund

By Chris Taylor, Investment Director, Head of Research Neptune is excited to announce the launch of the Japan Institutional Fund on 22 June, having disclosed to the market in March its intention to offer the product. The Fund will be managed by the highly-regarded Chris Taylor, Head of Research and manager of the long-running Japan Opportunities Fund. It will invest in the same underlying stocks as the Japan […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm