View more on these topics

Legal & General offers 100 per cent mortgage

Legal & General has joined the small number of lenders offering 100 per cent mortgages.

The 100 per cent low start discount mortgage has been designed with the first time homeowner in mind and has a two stage stepped discount. The mortgage will have a 5.25 per cent discount until November 1, 2001, giving it a payable rate of 2.99 per cent. After this, the mortgage has a 0.75 per cent discount until May 1, 2004. It is available on an interest only or repayment basis.

Interest is calculated daily and the mortgage has redemption penalties of three per cent of the advance until the end of the final discount period. Borrowers must have life assurance, though not necessarily from Legal & General. The product also has a mortgage indemnity guarantee (MIG) premium based on 12 per cent of the advance, payable on completion.

The 100 per cent low start discount mortgage is the most competitive three-year discounted rate 100 per cent mortgage on the market at the moment. According to Moneyfacts, the next most competitive three-year discounted rate 100 per cent mortgage is the 5.69 per cent mortgage from Pink Home Loans.

The Pink Home Loans mortgage has a 2.3 per cent discount until May 1, 2002, followed by a one per cent discount until May 1, 2004. It also has redemption penalties of three per cent of the advance for the discounted term. There is also a 12 per cent MIG premium, payable on completion, but this mortgage is available on an interest only and repayment basis, with no need for life cover.

Recommended

Baring takes five

Baring Asset Management is taking a novel approach to global sector funds with the introduction of the leading sector fund. This unit trust aims to produce capital growth by investing in financials, technology, healthcare, telecommunications and the media within the fund. Financials and technology will be the heaviest sector weightings. The financial sector is a […]

Opra publishes stakeholder guidance

The Occupational Pensions Regulatory Authority is publishing technical guidance on arrangements for direct payments by employers to personal pension plans and stakeholder schemes. The guidance note explains the duties of providers and employers and the procedures for reporting to Opra. It also gives details of the timescale for making payments, and sets out how employers […]

INDEPENDENT VIEW

“At least if you are dealing with a crook, he is an educated crook.” Which wise man would say this to a television audience of millions, live, on BBC1 business breakfast? A lawyer maybe? How about a judge talking on the way convicts educate themselves in prison? Worse still, a politician talking about the Chancellor? […]

Saving graces

In a move that has attracted a fair amount of early praise, the Conservatives have announced their plans to remove all tax liability on savings income that falls below the threshold for higher-rate tax – currently £32,785 – before deducting the personal allowance. This was stated to be in response to the savings ratio having […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com