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Platform leaves tracks in self cert market


Self-Certification Three-Year Fixed Rate

Type: Fixed-rate mortgage

Fixed term: Until July 1, 2008

Fixed rate: 5.69%, 5.99% with cashback

Minimum loan: 25,001

Maximum loan: Up to 85% of valuation subject to a maximum of 500,000, up to 75% of valuation subject to a maximum of 300,000

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

Arrangement fee: 495

Redemption fee: 5% of the amount repaid until July 1, 2008, thereafter one months notice or 1% of amount repaid

Introducers fee: 0.5% of original loan subject to 250
minimum and 3,500 maximum

Tel: 0845 070 1999

Platforms latest self-certification three-year fixed-rate mortgage is available at 5.69 per cent without cashback and 5.99 per cent with cashback for loans up to 85 per cent of valuation.

Charcol product development manager Elliot Nathan feels this is a competitive three-year fixed rate for a self-certification mortgage up to 85 per cent of valuation, but says it is not the most competitive deal on the market. He believes a lack of flexibility and high arrangement fee let this deal down.

Looking at other deals which may provide competition within the self-cert market, he says: “Bank of Ireland has a 5.59 per cent fixed rate for three tears. This has a 299 arrangement fee and allows overpayments of 10 per cent a year free from an early redemption charge.”

Nathan also mentions UCB Home Loans 5.69 per cent self-cert fixed rate for three years which allows overpayments of 500 a month free from an early redemption charge. This deal has a 330 arrangement fee and 75 booking fee.


Suitability to market: Good
Flexibility: Poor
Competitiveness of mortgage rate: Average
Adviser remuneration: Good

Overall 6/10



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