View more on these topics

Pink gives 100 per cent effort

Pink Home Loans has introduced a 100 per cent mortgage that has a 1.5 per cent discount for the first year.

The mortgage is available for loans of up to £150,000 and has a 1.5 per cent discount with a current payable rate of 5.25 per cent. Borrowers who pay this mortgage off during first three years must pay a penalty. This reduces by 1 per cent each year, from 5 per cent of the outstanding loan in year one to 3 per cent in year three.

Although property prices have increased faster than salaries, particularly in London and the South-east, affordability remains good and most borrowers would not need to borrow up to 100 per cent.

The Nationwide Building Society&#39s monthly review of house prices for August 2001, shows borrowers in London put, on average, 27 per cent of their incomes towards monthly mortgage repayments, compared to 63 per cent in 1989. Borrowers in the North put 14 per cent of their wages towards their mortgage repayments, compared to 30 per cent in 1989.

For borrowers without any deposit 100 per cent mortgages provide a means of getting on the property ladder. According to Moneyfacts on September 6, 2001,the most competitive interest rate for 100 per cent mortgages of this type is from Norwich Union at 3.99 per cent. The least competitive is from Royal Bank of Scotland at 5.74 per cent. This places the Pink mortgage somewhere in the middle of the scale.

The Norwich Union mortgage with a current payable rate of 3.99 per cent has a 3.25 per cent discount until November 1, 2002. If borrowers pay the mortgage off before November 1, 2004, they are subject to a decreasing penalty like Pink Home Loans. In years one and two, this amounts to 3 per cent of the amount repaid, reducing to 2 per cent in year three, which is lower than Pink Home Loans.


Rothschild kicks off retail push with high-yield fund

Rothschild Asset Management is introducing a high-yield bond fund next month as the first step of its relaunch into the retail market. The Five Arrows monthly-income fund will be part of Rothschild&#39s new retail Oeic, which will encompass its seven other offerings to the retail market. It opens on October 1. The fund will aim […]

PIA heaps on review woes for IFAs

The PIA&#39s recently issued CP35 on the pension review is one of those documents that you glance at once and then immediately file away in the “too difficult” drawer. Could the regulator possibly have found a more complicated way of setting out what amounts to who has to pay what to whom and by when? […]

Friends crosses IFA after pledge on &#39poaching&#39

Friends Provident is under fire again for trying to poach IFA clients after it had given an adviser written reassurance that it would not cross-sell. Swansea IFA Keith Lewis of Hartley Great-batch & Co says he had received a letter earlier this year from a Friends head of sales stating that mailing lists were cross-referred […]

First National – 3 Year Fixed British Mortgages Abroad

Tuesday, 4 September 2001.Fixed term: Three years.Fixed rate: 7.3 per cent.Minimum loan: £35,000.Maximum loan: Up to 80 per cent of valuation subject to a maximum of £1m.Income multiples: 3.5 times principal income plus second or 2.75 times joint. Arrangement fee: $1,000 up to 74 per cent of valuation, $1,125 75-80 per cent of valuation.Redemption fee: […]


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