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Marsden goes for the five-year fix

Marsden Building Society has brought in the five-year fixed rate mortgage.

The mortgage is fixed at 5.65 per cent until July 31, 2006 for loans of up to 80 per cent of valuation. After the fixed rate period the mortgage will revert to the Marsden’s standard variable rate.

It comes with three months’ free mortgage payment protection insurance, while valuation fees are refunded if the society’s internal valuers are used. Marsden also pays legal fees for remortgages if its solicitors are used. The mortgage has a redemption penalty of 5 per cent in year one, which reduces by one per cent a year to one per cent in year five. It also has an arrangement fee of £295.

According to Moneyfacts the Marsden has the most competitive five-year fixed rate mortgage on July 20, 2001. The next most competitive is from Leeds & Holbeck Building Society. This has a fixed rate of 5.69 per cent until September 1, 2006, but for loans of up to 95 per cent of valuation. However there is a higher arrangement fee of £395 and compulsory buildings and contents insurance. The redemption penalty on the Leeds & Holbeck mortgage of six per cent in the first three years and three per cent in years four and five is also higher.

Fixed rate mortgages are attractive to many borrowers because they enable them to know exactly how much their repayments will be over a set period. However the Bank of England rate has fallen over the past six months and could remain at its current amount in an effort to keep a recession at bay. As a result many borrowers may prefer to opt for discounted rate mortgages which normally have lower rates than fixed rate mortgages.

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A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.

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