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Legal & General Bank flexes its mortgage muscles

Legal & General Bank has followed up on the recent 0.25 per cent cut in the Bank of England base rate by bringing in the flexible reserve mortgage.

The mortgage will have a discount of 0.5 per cent for the first two years of the mortgage for loans of up to 75 per cent of valuation, giving it a payable rate of 5.6 per cent. At the end of the discounted period the mortgage will revert to Legal & General Bank’s standard variable rate, which on May 21, 2001 was set at 6.1 per cent.

Legal & General Bank has also made the mortgage fully flexible, as it offers underpayments, overpayments, payment holidays, lump sum withdrawals and interest is calculated daily. There are no redemption penalties.

According to Moneyfacts the Legal & General Bank is the joint most competitive two-year discounted flexible mortgage. Its only competitor is the flexible mortgage from Britannic Building Society. This too has a rate of 5.6 per cent for the first two years of the mortgage for loans of up to 85 per cent of valuation, is fully flexible and has no redemption penalties. However, unlike the Legal & General product the Britannic mortgage refunds any legal fees.


FSA publishes credit union compensation proposals

The FSA is publishing details of proposed arrangements for compensation of credit union members.The proposals, designed to deal with the fallout in the event of the failure of a credit union, are set out in Consultation Paper 94 – Credit unions: Consumer Compensation and Consumer Complaints.FSA credit unions regulation head says: “A sound and effective […]

Principality goes for cashback

Principality Building Society has introduced the cashback discount mortgage.Aimed at both first time buyers and existing borrowers looking to remortgage, the mortgage has a discount of 0.25 per cent for the first five years of the loan. This gives it a payable rate of 6.2 per cent for loans of up to 95 per cent […]

Mystery firm starting up in Edinburgh

A new mystery financial services company is set to launch in Edinburgh. Asenior management team is being recruited for the new company which says ithas significant capital backing from a strong financial services brand. Itis aiming to become a leading UK financial services provider. It is not yetknown who is behind the venture or what […]

April mortgage lending surges

Mortgage lending in April was the highest since monthly records began in June 1998, according to figures from the Council of Mortgage Lenders and Department of Environment, Transport and the Regions.Lending increased by 5.3 per cent to £8bn in April 2001 from £7.6bn in March 2001, and up 27 per cent from £6.3bn in April […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


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