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Newbury 5 free from redemption penalty

Newbury Building Society has improved its Newbury 5 mortgage, which has a five year discount and no early redemption penalties.

Loans of up to 75 per cent of valuation have the biggest discount – 0.5 per cent, giving a payable rate of 5.74 per cent. Loans of between 76 and 90 per cent of valuation have a 0.35 per cent discount, giving a payable rate 5.89 per cent. Loans of between 91 per cent and 95 per cent of valuation offer a 0.20 per cent discount, giving a payable rate of 6.04 per cent.

According to Moneyfacts on May 24, 2001, the Newbury 5 mortgage is the most competitive mortgage of its type, but only for smaller loans at 5.74 per cent. The closest competitor is Stroud & Swindon Building Society&#39s five year discounted rate mortgage that has a flexible option. It has a payable rate of 5.99 per cent, regardless of the size of the loan.

Like the Newbury mortgage, it has no redemption penalty. Although it has a higher rate than the Newbury mortgage for borrowers with loans up to 90 per cent, borrowers who need the flexibility may find it more attractive. Borrowers with larger loans, particularly first-time buyers with small deposits, can get a lower interest rate with Stroud & Swindon and also have the benefit of flexible features such as overpayments, underpayments, payment holidays and lump sum withdrawals.


FSA publishes credit union compensation proposals

The FSA is publishing details of proposed arrangements for compensation of credit union members.The proposals, designed to deal with the fallout in the event of the failure of a credit union, are set out in Consultation Paper 94 – Credit unions: Consumer Compensation and Consumer Complaints.FSA credit unions regulation head says: “A sound and effective […]

Scottish Equitable International – UK Corporate Bond Fund

Monday, 21 May 2001.Type: Offshore life fund.Aim: Growth by investing in UK investment grade bonds.Minimum investment: £15,000.Place of registration: Luxemburg.Investment split: 100 per cent in UK investment grade bonds.Isa link: No.Charges: Annual 1 per cent.Commission: Initial 5.25 per cent.Tel: 0131 339 9191.

Coles claims best-buy tables pervert market

Coles said lenders that “play fair” lose business to providers that cater products specifically with best-buy tables in mind, even though the loans they offer are often more exp-ensive in the long run.He warned banks and building societies not to leave themselves open to allegations of foul play as consumers become increasingly aware that there […]

Standard Life Investments – Standard Life European Private Equity Trust

Wednesday, 23 May 2001.Type: Investment trust.Aim: Growth by investing in private equity funds which invest in unquoted companies.Minimum investment: £50.Maximum investment: No maximum.Investment split: 100 per cent in private equity funds which invest in unquoted companies.Types of share: Ordinary shares.Isa link: NoPep transfers: No.Redemption date: None.Charges: Annual 0.8 per cent.Commission: None.Tel: 0800 333353.


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