Portman Building Society has unveiled a two year fixed rate that is available for loans of up to 95 per cent of valuation.
The mortgage is fixed at 5.49 per cent until August 1, 2003 and remortgages are offered up to 75 per cent of valuation under Portman's easy remortgage service. The income multiples are 3.25 times the first income plus a second income or 2.75 times joint income.
If borrowers redeem during the fixed rate period, they must pay 3 per cent of the amount repaid. However, they can pay up to 10 per cent of the loan without incurring an early redemption penalty.
According to Moneyfacts on June 21, 2001, the West Bromwich Building Society has a two-year fixed rate mortgage that is available for loans of up to 95 per cent of valuation. It is fixed at 5.39 per cent until August 31, 2001, which is more competitive than the Portman mortgage. The early redemption penalty is the same for both mortgages.
The West Bromwich mortgage allows borrowers to borrow more than the Portman mortgage as the income multiples are 3.5 times the main income plus a second or 2.75 times joint income and remortgages are available for loans of up to 95 per cent of valuation.
The latest figures from the Council of Mortgage Lenders shows that in May 2001, first time buyers borrowed an average of 2.41 times their income and existing homeowners borrowed 2.31 times their income.