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Northern Rock funds L&G Bank&#39s broker-only deal

Legal & General Bank is offering a flexible mortgage fixed at 5.19 per cent until December 2005, available only through intermediaries.

The product is funded by Northern Rock, which owns L&G Bank, but is being marketed to brokers through L&G appointed representatives.

The loan offers a procuration fee of 0.35 per cent. It is available up to 90 per cent of loan to value. Interest is calculated daily and the loan is available for purchase or remortgage.

L&G says the flexible features mean borrowers can make overpayments, underpayments, take payment holidays and borrow from their accumulated reserve.

Borrowers can make online transactions, track progress and see the effect of altering payments.

After the fixed three-year period, interest will revert to the standard variable rate, which is currently 4.95 per cent. Redemption charges apply only if the entire loan is repaid during the fixed period.

L&G PR manager Peter Timberlake says: “This is a new product being manufactured by Northern Rock and marketed through L&G reps to intermediaries.”

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