Type: Self-cert tracker mortgage
Tracker term: Two years
Tracker rate: Up to 90% of valuation – 0.85% above Bank of England base rate, up to 85% of valuation – 0.7% above Bank of England base rate, u to 75% of valuation – 0.6% above Bank of England base rate
Payable rate: Up to 90% of valuation – 5.85%, up to 85% of valuation – 5.7%, up to 75% of valuation – 5.6%
Minimum loan: £25,001
Maximum loan: 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 90% of valuation – 4.5 times principal income plus second or 3.5 times joint, up to 75% of valuation – 4.75 times principal income plus second or four times joint
Conditions: £250 cashback, free standard valuation
Arrangement fee: £599
Redemption fee: 5% of the amount repaid in first two years, thereafter 1% or one month’s notice
Introducer’s fee: 0.6% subject to a £250 minimum and £5,000 maximum
Tel: 08707 590170
This deal from Platform via Pink Home Loans is a base rate tracker starting at 0.6 per cent above base rate for loans up to 75 per cent of valuation to give a current pay rate of 5.6 per cent.
John Charcol product specialist Ash Sharma says: “New self cert products introduced from Platform Home Loans via Pink certainly shows that this market is still as strong as ever.”
Sharma points out that this self-cert tracker is available at different rates for loans up to 75 per cent, 85 per cent and 90 per cent of valuation. “The term of these rates is two years from completion and the deal has a relatively low arrangement fee of £599.
“There is also an early repayment charge of 5 per cent for the first two years, and 1 per cent or one months notice thereafter. While many would see this as having an extended tie ins, as long as the month’s notice is given, no early redemption charge will be charged.
Sharma puts the spotlight on the incentives that are given to the client, which include a free valuation and £250 cash back. “Not many lenders would offer these incentives for self-cert customers so for Platform to offer this via Pink shows the lenders plan for growth in the market.”
According to Sharma, the main competition will come from Bank of Scotland’s base plus 0.64 per cent deal to February 28, 2009. This has a £699 fee, is available up to 85 per cent of valuation but it is only remortgage customers who receive a free valuation and free legal service.
Sharma concludes: “BM Solutions also has a base plus 0.59 per cent deal for 2 years via L&G. It is available up to 85 per cent of valuation and has a refund of valuation,”
Suitability to market: Good
Competitiveness of rate: Average
Adviser remuneration: Good