View more on these topics

Mercantile brings in fixed rate

Mercantile Building Society has introduced the two-year fixed rate mortgage.

Specifically aimed at first-time buyers in the North East of England, the mortgage has a fixed rate of 5.49 per cent until August 1, 2003 for loans of up to 80 per cent of valuation.

The mortgage can be used to buy properties in Northumberland, Tyne & Wear and County Durham. It has an arrangement fee of £195 and comes with free unemployment assurance for the first year of the loan. It has a redemption penalty of 4 per cent of the advance in the first year and 3 per cent of the advance in the second year.

In an attempt to stave off a recession the Bank of England has cut interest rates steadily over the first seven months of 2001. As a result many lenders have also cut their rates to appeal to borrowers. According to the Council of Mortgage Lenders the average fixed rate mortgage rate was 6.22 per cent for the first quarter of 2001. For the second quarter of 2001 this had reduced to 5.94 per cent.

According to Moneyfacts on August 7, 2001 the most competitive two-year fixed rate mortgage is from Yorkshire Building Society. This has a fixed rate of 5.19 per cent for loans of up to 75 per cent of valuation. The Yorkshire mortgage has an arrangement fee of £295. It also has a slightly more competitive redemption penalty of 3 per cent during the fixed rate period. However the biggest difference between the two mortgages is that the Yorkshire Building Society product is available to anyone wanting to buy a property anywhere in the UK, unlike the Mercantile product which is restricted to properties in the North East of England.


Pavilion moves up a gear

Pavilion Asset Management has made its debut on the investment trust scene with the Pavilion geared recovery trust.This split-capital investment trust aims to provide a combination of income and growth by investing in undervalued stocks mainly in the UK and in the shares of other investment trusts.A growth portfolio makes up 60 per cent of […]

Standard rebuts Stewart rumour

Standard Life has dismissed as “pure speculation” claims that Scottish & Newcastle chairman Sir Brian Stewart is to become its new chairman.The mutual life office says no decision has been made as to who will replace current chairman John Trott, who is expected to announce his retirement at Standard&#39s AGM next April.

Maggie Evans

When musing over the customer retention issues facing IFAs, the message isclear – it is not why but how. We all know and accept the (varying)statistic that it costs eight times more to recruit a new customer than itdoes to retain one. Although the argument is compelling, few firms haveaddressed the issue. A study carried […]

New telephone account from Chelsea

Chelsea Building Society is launching a telephone based investment account paying a variable interest rate, currently 5 per cent gross a year.The interest on the Call-Direct Advantage Account is guaranteed not to fall more than 0.25 per cent below the Bank of England base rate before January 2003. The minimum investment is £2,500, and no […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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