View more on these topics

Northern Rock comes together with flexible tracker

Northern Rock has introduced a flexible mortgage that tracks the Bank of England base rate for five years.

The mortgage is part of the together range and is available for loans of up to 95 per cent of valuation. The interest rate is currently 6.89 and is guaranteed not to be more than 1.5 per cent above the base rate until January 1, 2005.

Overpayments, underpayments, payment holidays and lump sum withdrawals are offered and interest is calculated on a daily basis. There are no early redemption penalties and mortgage payment protection insurance is free for the first six months.

According to Moneyfacts on April 9, 2001, there are no exact comparisons to the Northern Rock mortgage. The closest competitor is a flexible base rate tracker from The Mortgage Business, Like the Northern Rock mortgage it is available for loans of 95 per cent and has the same degree of flexibility, including daily interest. It is guaranteed not to be more than 1.49 per cent above the base rate for the mortgage term.

The Mortgage Business mortgage may be more competitive than the Northern Rock mortgage because any cut in the base rate will immediately be passed on to borrowers for the life of the loan. The Northern Rock mortgage reverts to the standard variable rate after five years and the building society would not necessarily pass on base rate cuts straight away.

Recommended

ScotAm deals double whammy to income drawdown applicant

Bunglebusters makes a comeback this week after Scottish Amicable lost an IFA client&#39s income drawdown paperwork not once but twice. Abergavenny IFA Colin Thompsett claims his widowed client was left facing a lower transfer value as a result. The admin saga began last May when Thompsett&#39s client planned to transfer her NPI personal pension to […]

Employer guide to stakeholder survival

The Confederation of British Industry and law firm Hammond Suddards Edge have produced an employer&#39s guide to stakeholder. The stakeholder survival guide is aimed at helping businesses legally bound to offer the new pension scheme, helping them educate employees about the need to make provision for their retirement. The booklet explains the new obligations on […]

Principality Building Society – Discount Option 5

Tuesday, 10 April.Discount Option 5Discounted term: Until June 30, 2006.Discount: 0.86 per cent.Payable rate: 6.09 per cent.Minimum loan: £5,000.Maximum loan: Up to 95 per cent of valuation subject to no maximum. Remortgages up to 90 per cent of valuation subject to no maximum.Income multiples: 3.5 times principal income plus second or 2.5 times joint.Arrangement fee: […]

Market Harborough – 3.75 Per Cent Fixed

Thursday, 12 April.3.75 Per Cent FixedFixed term: Two years.Fixed rate: 3.75 per cent.Minimum loan: £5,000.Maximum loan: Up to 90 per cent of valuation subject to a maximum of £400,000.Income multiples: For loans up to 75 per cent of valuation 3.25 times principal income plus second or 2.75 times joint. Loans of 76-90 per cent of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment