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Pat on back for Portman



Type: Two-year fixed-rate mortgage

Fixed term: Fixed until December 1, 2005

Fixed rate: 4.25%

Minimum loan: £15,500

Maximum loan: Up to 95% of valuation subject to a maximum of
£250, up to 90% of valuation subject to a maximum of £400,000, up
to 85% of valuation subject to a maximum of £500,000, up to 75% of
valuation subject to a maximum of £1m

Income multiples: Up to 3.5 times principal income plus second or
2.85 times joint

Arrangement fee: £300

Redemption fee: 3% of amount repaid until December 1, 2005

Introducer&#39s fee: 0.25 % of loan amount

Conditions: Capital repayments of up to 10% a year allowed without

Tel: 01202 563859

Portman&#39s two-year fixed-rate mortgage is fixed at 4.25 per cent until
December 1, 2005 and is available for loans of up to 95 per cent of

Charcol senior technical manager mortgages Ray Boulger regards
this product as very good value for clients because of the competitive
rate. He says: “Although it is not the cheapest 2-year fix currently
available in terms of rate, it is the cheapest 2-year fix with a
penalty-free part repayment facility. This would be the winning feature
that would tempt borrowers to take this product over similar deals
offering a cheaper rate.”

Portman&#39s consistently high standard of service to IFAs is another
positive factor mentioned by Boulger. He says: “Both the lender fee
and the early redemption charges are competitive with similar deals
on the market.”

However, it is not only good news for Portman. Boulger says:
“Portman still calculates interest on an annual basis, which is more
expensive for borrowers on a repayment mortgage, especially for
shorter terms. The end date of December 1, 2005 is very skinny and
in reality, this means most borrowers will have a maximum of 22
months on the fixed rate. “

Looking at the nearest competitors to this mortgage Boulger says:
“The only real competitor to this deal is Britannia&#39s 2 year fix at 4.19
per cent, which is available for loans to 95 per cent of valuation.”

Boulger concludes: “Another point worth noting is that the lender fee
on the Britannia deal is £399, which is £99 higher the fee charged on
the Portman deal.”


Suitability to market: Good

Competitiveness of mortgage rate: Good

Adviser remuneration: Average

Overall 8/10


Standard Life Investments – Property Income Trust

Type: Closed-ended investment company Aim: Income and growth by investing in UK commercial property Minimum investment: Lump sum £5,000 Investment split: Standard offices 37.5%, retail warehouses 25.5%, leisure 16%, office parks 10.7%, standard industrials 8%, industrial parks 2.3% Place of registration: Guernsey Charges: Initial 2.5%, annual 0.85% Commission: Initial 2% Tel: 0131 225 2345

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