View more on these topics

North of the border mortgage from Scottish Building Society

The Scottish flexible mortgage from the Scottish Building Society is aimed at borrowers who want to buy a new home in Scotland.

The mortgage is available for loans of up to 90 per cent of the value of the property, with Scottish Building Society giving the mortgage a 2 per cent discount for the first six months of the loan. This gives it an initial rate of 3.75 per cent.

Scottish Building Society will provide lenders with free unemployment insurance for the first five years of the loan. Borrowers who are remortgaging their properties will be able to get their basic valuation and legal fees refunded by the company if they use experts recommended by the society. If the mortgage is redeemed in the first five years then the borrower will have to pay a fee of two months’ interest in the first three years and one months’ interest in year four and five.

The flexible features include underpayments, overpayments and the facility to take payment holidays. However, unlike other flexible mortgages interest is calculated monthly instead of daily and there is no facility for lump sum withdrawal.

Only two building societies confine their lending to just Scotland: Scottish Building Society and Dunfermline Building Society. As Dunfermline does not offer any discounted flexible mortgages, this makes the Scottish Building Society offering unique. It is also the most competitive six-month discounted flexible mortgage in the UK market according to Moneyfacts on September 25, 2001. Its nearest competition comes from Standard Life Bank, which offers a flexible mortgage with a 1.76 per cent discount for the first six months, giving it a payable rate of 3.99 per cent for loans of up to 90 per cent of valuation.

Recommended

Life on Mars as 150 funds get on board

Old Mutual&#39s multi-manager platform, codenamed Project Mars, will offer more than 150 funds from 24 providers at launch in a bid to rival Skandia. The new platform, to be named on October 1, will include funds from Aberdeen, Artemis, Credit Suisse, Deutsche, Dresdner, Framlington, Friends Provident, Invesco Perpetual, Investec, Liontrust, Merrill Lynch, Newton, Old Mutual, […]

Smee says IFAs must encourage youth

At this week&#39s Institute of Financial Planning conference at Warwick University the message on how important education and technology are to IFAs was drummed home to members.In a question time session Aifa director general Paul Smee criticised IFAs for their reluctance to recruit and train graduates and encourage young, educated people to join the profession.In […]

Genesis amethyst mortgage aims at fixed rate market

Genesis Home Loans is hoping that the sparkle of its new mortgage will appeal to borrowers.The Genesis amethyst fixed rate mortgage is aimed at the self-certification market, made up of employed and self-employed people who have had trouble getting a mortgage as they have found it hard to prove how much they earn.The mortgage has […]

A consumer&#39s view

Standard Life storms into the buy-to-let market, read a news headline a couple of weeks ago. Perhaps it is just journalistic cynicism but it is difficult to dismiss the thought that this will probably signal the top of the property investment market, at least in the short term. Those of us who have been around […]

Nobody expects the Spanish Inquisition

Paul Fidell, Head of Business Development (Investments), writes about one of the primary challenges for those involved in estate planning. He looks at dealing with investment uncertainty in these low growth, low inflation but still volatile investment conditions. Protection of capital, to leave something for beneficiaries, is a fundamental objective of many people’s plans for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment