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Mortgage works with fixed rate menu



Fixed-rate buy-to-let mortgage

Fixed term:
Until August 1, 2006, 2007 or 2009

Fixed rate:

Minimum loan:

Maximum loan:
Up to 80% of valuation subject to a maximum of £350,000, up to 70% of valuation up to £500,000, up to 60% of valuation subject to a maximum of £1m

Income multiples:
Rental income must be at least 130% of mortgage repayments for loans up to 80% of valuation, at least 120% of mortgage repayments for loans up to 75% of valuation, at least 100% of mortgage repayments for loans up to 65% of valuation

Capital repayments of up to 10% a year allowed without penalty

Arrangement fee:
0.5% of original loan subject to £395 minimum

Redemption fee:
5% of amount repaid until August 1 2006, 2007 or 2009

Introducer&#39s fee:
0.4% of original loan

Tel: 0845 6010763

The Mortgage Works has introduced two-year, three-year and five-year fixed-rate buy-to-let mortgages at the rate of 5.99 per cent.

Adept Financial Services consultant Cliff Francis thinks the desirability of fixing rates increases when base rates rise, with further increases likely, and while rents are not rising. He says: “These new rates from The Mortgage Works continue its trend of offering very competitively priced fixed rates for the buy-to let sector. By providing the same rate for two, three or five years this gives us the choice to match a rate to the security of commitment each client prefers.”

Francis thinks a useful feature of the fixed rates is the sliding scale of rental income ratios, particularly for low LTV applications. He says: “The fees and charges are neither low nor excessive, and documentation requirements are minimal for all but the first time landlord.&#39

However the comments are not all good. Francis says: “In my experience the continuing problem is service. Patience is a virtue usually lacking from a mortgage brokers psyche, but is needed in plentiful supply with The Mortgage Works. In this age of the online instant decisions, waiting for a week or two for an application to even be looked at is intolerable.”

Overall, Francis feels the products are strong, but there is competition with Nat West and Bank of Ireland providing similar products. BM Solutions is also regarded by Francis as a possible competitor which has aan excellent online system but a lack of competitive rates. He concludes: “When rates, fees and documentation are similar between lenders, service is a deciding factor and it is here that The Mortgage Works need radical improvement.”

Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Good

Overall 8/10


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