Legal & Generals mortgage club has introduced the self-cert flexible tracker mortgage.
The mortgage is aimed at the self-certification market, which is made up of self-employed people who cannot prove their income and who therefore have had trouble obtaining a mortgage.
Legal & General has arranged for the mortgage to have an interest rate of 0.98 per cent above the Bank of England base rate for the term of the mortgage for loans of up to 85 per cent of valuation. It is available for people who are looking to buy their first home or to those who are seeking to remortgage.
Flexible features available with the mortgage include the ability to make underpayments, overpayments, take payment holidays and lump sum withdrawals. Interest is calculated daily. Applications received by June 30, 2001 will have the completion fee of £325 waived and there are no redemption penalties.
Looking at the market, the Legal & General mortgage and Versos are the most competitive self-certification tracker flexible mortgages on May 10, 2001, according to Moneyfacts. With the same rate as Legal & Generals Versos flexible self-cert variable rate tracker mortgage offers all the flexible features. There are also no redemption penalties, but the Verso mortgage does have a completion fee of £325.