View more on these topics

Mortgage Business designs flexible buy to let

The Mortgage Business has designed a flexible buy-to-let mortgage that allows borrowers to buy up to ten properties.

Investment Portfolio has a maximum loan to valuation of 85 per cent and tracks the Bank of England base rate for the mortgage term.

Flexibility is ensured by the ability to make overpayments, underpayments, payment holidays and lump sum withdrawals.

The mortgage is, on the whole, an attractive product. A maximum loan to valuation of 85 per cent is the highest on the market and a maximum of ten properties is good compared to some mortgages. But the interest rate of two per cent above the base rate gives a current payable rate of eight per cent, is high, and borrowers could be paying extra for additional features that they may not use.

If a lower interest rate is more important, borrowers could choose another product. According to Moneyfacts on November 17, 2000, Exclusive Connections had a flexible buy-to-let tracker mortgage with a payable rate of 7.15 per cent until December 3, 2005. After this period it reverts to 1.75 per cent above the Bank of England base rate for the term of the mortgage.

However, it has an early redemption penalty of six months interest in the first five years. The Mortgage Business product is slightly more flexible as it allows lump sum withdrawals and Exclusive Connections does not.

Recommended

Sailing close to the windfall

After many months of speculation, Scottish Life announ ced in October it had agreed, subject to member, regulatory and Court of Session approval, to the transfer of its business to the Royal London Group.On first viewing, the proposal looked attractive. Mem bers would receive £500 in compensation for loss of membership rights and with-profits policyholders […]

Virgin sets target for IFA business

Virgin One is starting a nationwide recruitment drive with ambitious plans to generate up to half of its business thr ough intermediaries.The company is seeking key staff to lead its push into the independent adviser market, including a head of intermediary sales, regional business development managers and call centre sales-support staff.The move is part of […]

Manor Park – Guaranteed UK Capital Growth Fund

Thursday, 23rd November 2000.Type: Guaranteed growth bond.Minimum-maximum investment: £5,000-no maximum.Term: Five years.Return: 110 per cent of capital returned in full along with 70 per cent ofaverage growth in FTSE 100 index.Commission: Initial 3 per cent.Tel: 0845 6030232.

Abbey offers pooled global equity fund

Abbey National Asset Management is adding a new Pooled Global Equity Fund to its fund range. It is an actively managed medium risk fund which uses ANAM’s existing Pooled UK Equity and Pooled International Equity Funds for its exposure. Assets will be split equally between UK equities and overseas equities. Performance will be measured against […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment