View more on these topics

Northern Rock looks to the base rate

Northern Rock has introduced the five-year base rate tracker mortgage.

Until February 1, 2007 the mortgage will be set at 1.5 per cent above the base rate for loans of up to 75 per cent of the property valuation, giving it a payable rate of 5.5 per cent.

The mortgage can be used to buy up to four properties, with the maximum advance for each property set at £250,000 and an overall limit of £1m. There are no penalties if the mortgage is redeemed during the tracker-rate period and there is an arrangement fee of £495. Any expatriate applicants are restricted to a maximum loan to value limit of 50 per cent of the property value.

This is not the most competitive five-year base rate tracker mortgage on the market. According to Business Moneyfacts on November 19, 2001, the lowest rate is from Verso, which has a rate set at 0.98 per cent above the base rate for loans of up to 80 per cent of valuation, giving a payable rate of 4.98 per cent.

The Verso mortgage may have a lower rate than the Northern Rock product, but it also has a redemption penalty of one month’s interest. Although it can be used to purchase any number of properties, these cannot total more than £500,000, which makes it more restrictive than the Northern Rock mortgage.


Hargreaves Lansdown puts together new Clerical Medical stakeholder product

Hargreaves Lansdown has put together a new stakeholder plan from Clerical Medical offering enhanced terms.It says a price war is breaking out between stakeholder providers and it has been able to negotiate an exclusive deal on Clerical’s Futureproof plan.The plan includes an enhancement of up to 3 per cent on premiums and the plan is […]

MPs lash Davies over Equitable Life failure

FSA chief executive Howard Davies has been lambasted by leading MPs in one of the strongest attacks to date over the regulator&#39s handling of the Equitable Life debacle.Continuing his testimony before the Parliamentary Treasury select committee on the affair, Davies was told the FSA was bullied around by the old Equitable board and impotent in […]

The prudent approach

While the industrywide electronic new business initiative struggles to reach anything like acceptable levels of usage, there are a small but significant number of life offices which are attracting electronic new business over their websites. Prudential is an excellent case in point, having recently announced that it has now received over £100m in investment into […]

Disgusted with Tunbridge Wells

In common with many of my clients, I have had a 10-year with-profits policy with Tunbridge Wells Equitable Friendly Society that matured on October 1.We all received a letter from Twefs on August 7, stating the maturity value due for payment on October 1. Due to the events of September 11, Twefs then decided to […]


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