Mortgage 2000 has introduced the 2.99 per cent fixed rate self-certification mortgage.
Aimed at self-employed people who are unable to prove their income with payslips, the mortgage has a fixed rate of 2.99 per cent for the first year of the mortgage on loans of up to 75 per cent of valuation. The mortgage is available to first time homebuyers and existing borrowers who are looking to remortgage.
Following the fixed rate period the mortgage reverts to the Mortgage 2000 self-cert standard variable rate, which on April 26, 2001 was 1.75 per cent above the Bank of England base rate, giving it a payable rate of 7.25 per cent.
There is an arrangement fee of £299 and redemption penalties of five per cent of the advance for the first two years of the loan and four per cent of the loan in years three and four. The maximum that can be borrowed is £500,000.
Mortgage 2000s product is the most competitive on the market. According to Moneyfacts on April 26, 2001 the next most competitive one-year fixed rate self-cert mortgage is the 5.48 per cent fixed rate mortgage from Verso. Comparing it to the Mortgage 2000 product, the Verso mortgage has a maximum loan of £300,000 which is lower, and an administration fee of £325 which is slightly higher. It might be considered more competitive on redemption penalties, with five per cent of the advance for the first three years of the loan only, compared to four years on the Mortgage 2000 product.