Legal & General s Mortgage Club is going for the self-employed market with the introduction of its discounted self-cert tracker mortgage.
The mortgage is aimed at self-employed people who find it difficult proving their income. Applicants for the discount self-cert tracker will not have to provide proof of income, and there are no minimum income requirements.
Legal & Generals Mortgage Club has set the mortgage rate at a 1.5 per cent discount from the companys standard variable rate for the first two years of the loan, giving it a payable rate of 6.23 per cent for loans of up to 85 per cent of valuation. After the discounted period the mortgage will be set at 1.98 per cent above the Bank of England base rate, currently set at 5.75 per cent.
The mortgage has redemption penalties of five per cent of the advance in the first two years, reverting to one months interest thereafter.
The discounted self-cert tracker is not the cheapest of its kind on the market. According to Moneyfacts the cheapest two-year discounted self-certification mortgage is the 5.74 per cent mortgage from the Mortgage Operation. This has a discount of 2.01 per cent for the first two years, giving it a payable rate of 5.74 per cent for loans of up to 85 per cent. After the discount period the rate is set at two per cent above the Bank of England base rate. The redemption penalty is three months interest in the first two years, reverting to one months interest thereafter.