Marsden Building Society has brought in the five year fixed rate mortgage.
Available for both first time buyers and people looking to remortgage their homes, the mortgage has a fixed rate of 5.75 per cent for the first five years for loans of up to 90 per cent of valuation.
The Marsden mortgage comes with £250 cashback and three months free payment protection insurance. For remortgagers the company pays legal fees if the companies solicitors are used and refunds the valuation fee. The mortgage also has redemption penalties of 5 per cent of the advance in year one, 4 per cent in year two, 3 per cent in year three, 2 per cent in year four and 1 per cent in year five.
The number of new fixed rate loans has declined recently, going from 848,000 in 1998 to 566,000 in 2000.
According to Moneyfacts on May 4, 2001 the Marsden mortgage is not the most competitive five year fixed rate mortgage on the market. This is the 5.45 per cent fixed rate mortgage from Cumberland Building Society, which is available for loans of up to 90 per cent of valuation. It also has free accident, sickness and unemployment cover for the first six months of the loan. Redemption penalties on the mortgage are 5 per cent in year one, 4.5 per cent in year two, 4 per cent in year three, 3.5 per cent in year four and 3 per cent in year five.
Based on a £100,000 mortgage for 90 per cent of valuation, London & Country Mortgages says that monthly payments for the Marsden mortgage would be £629.11 a month. The Cumberland mortgage monthly payments would be £611.11.