View more on these topics

Northern Rock fixes seven year flexi

Northern Rock has introduced a flexible mortgage that has a fixed rate for seven years.

The seven year flexi fixed mortgage is available for loans of up to 95 per cent of valuation and has a fixed rate of 5.99 per cent until July 1, 2008.

It is fully flexible as overpayments, underpayments, payment holidays and lump sum withdrawals. Interest is calculated on a daily basis.

Borrowers who redeem in the first seven years must pay an early redemption penalty of two per cent of the advance. As an added incentive, mortgage payment protection insurance is provided free for the first six months.

According to Moneyfacts on April 11, 2001, this mortgage is the only seven year flexible fixed rate mortgage available at the moment. despite the lack of competition, the mortgage still offers borrowers a good deal as seven year fixed rates that are not flexible have similar rates. For example, Birmingham Midshires allows borrowers to fix their mortgage term between one and 10 years at 5.65 per cent.

The Northern Rock mortgage provides borrowers with long term security and flexibility. The early redemption penalty is the only downside of this mortgage, but even that is reasonable. Some mortgages apply redemption penalties where borrowers overpay more than 10 per cent of their mortgage. Northern Rock&#39s redemption penalty only applies if borrowers repay the original advance.


European Central Bank resists rate cut

The European Central Bank today resisted mounting pressure for a cut in its interest rate, leaving it unchanged at 4.75 per cent.The decision surprised many analysts, and shows that the ECB sees inflation as its primary concern.ECB president Wim Duisenberg says: “Euro-area interest rates, both short-term and long, are not high by historical standards.” The […]

GMAC sub-prime rate cut could spark off a war

Specialist lender GMAC is slashing rates across the board and offering over 1,300 different mortgages following an overhaul of its non-conforming product range. In a move it says could spark a mortgage war in the sub-prime sector, GMAC is cutting rates on its product range by an average of 1 per cent and adopting a […]

CA relegates league as FSA rejects compulsion

The Consumers&#39 Association has attacked the FSA&#39s proposed league tables, saying they will be seriously undermined because there is no compulsion for product providers to participate. If firms are not compelled to hand over information about their product ranges, the tables will not offer a complete or accurate picture of the marketplace, says the CA. […]

PIA revokes suspension of London based IFA

The PIA has revoked the suspension of IFA Finance Matters of 99 Constantine Road, Hampstead, London.The firm had been suspended since March 5, because it had failed to renew its PI insurance cover.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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