View more on these topics

Northern Rock feels the seven year fix

Northern Rock is the second lender to offer a seven year fixed rate mortgage.

The mortgage has a seven-year fixed rate of 5.79 per cent for loans of up to 95 per cent of valuation and is available to all borrowers. It is also fully portable.

The 5.79 per cent fixed rate mortgage has redemption penalties of five per cent of the advance for the first three years, dropping to four per cent in year four, three per cent in year five, two per cent in year six and one per cent in year seven.

Northern Rock also include some additional features to the mortgage. Clients can take out a Northern Rock credit card with an interest rate of 7.9 per cent, and can also benefit from a loyalty discount. Customers who have been with the company for seven years or more can benefit from a discount of between 0.26 per cent to 0.41 per cent for the term of the mortgage loan.

According to Moneyfacts, on March 5, 2001, Birmingham Midshires 5.69 per cent fixed rate mortgage is the only other seven-year fixed rate mortgage. It is available for loans of up to 95 per cent of valuation and has redemption penalties of five per cent of the advance for the first year, four per cent in year two, three per cent in year three and two per cent thereafter.

Based on a £100,000 mortgage with a loan to value of 95 per cent, London & Country Mortgages says that monthly payments for the Northern Rock 5.79 per cent mortgage would be £631.53 a month. The Birmingham Midshires 5.69 per cent mortgage, on the other hand, would require payments of £625.49 a month.

Recommended

Pension planning pre April 5

TAX PLANNING AND THE DC TAX REGIME Pensions have always formed an essential part of a client&#39s end of tax year planning. Appropriate pension planning will be even more important in the lead up to 6 April 2001 as account will need to be taken of the provisions of the new DC tax regime which […]

Chiefs cross swords in mortgage rate war

The mortgage rate war between two of the UK&#39s top lenders has heated up with Nationwide chief executive Brian Davis attacking his Halifax counterpart James Crosby for allegedly making misleading claims. In a letter sent by Davis to Halifax chief executive Crosby last Friday, Davis accuses Halifax of wrongly claiming its mortgages are cheaper than […]

Still caught in annuities trap

The Chancellor may not have dumbed down but he has prudenced down. Only three uses of the word after double-digits last year. Nothing in the speech really ignited my professional interest. But there was a conspicuous omission. I was hoping for a move, however tentative, on annuities. After all, the annuity trap is especially acute […]

Positive approach to e-solutions

One of the key conclusions of the strategic review into the future use of technology in the IFA market, carried out by Cap Gemini Ernst & Young last August, was that in the 80s and 90s small advisers had needed compliance clubs (networks). However, in the 21st century they would increasingly need technology clubs to […]

Thumbnail

Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com