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Private Label caps for election volatility

Private Label is launching a capped mortgage as it belie ves the forthcoming general election may result in volatile interest rates in future years.

The general election cap mortgage has a three-year upper limit of 5.99 per cent and no lower limit, so borrowers will benefit from any reductions that may be made in interest rates.

The loan has no red emption charge during or after the capped period.

It is available up to 95 per cent loan to value or 99 per cent loan to value including add-ons such as solicitors&#39 fees.

There is no mortgage indemnity guarantee cha rge up to 90 per cent LTV and no requirement for paper references.

Income multiples are 3.25 times first income plus second or 2.75 times joint income.

Intermediaries will receive a procuration fee of 0.35 per cent of the loan, paid directly by the lender after completion. Minimum fee is £200.

Director of marketing Tony Fisher says: “The market is due for a shake-out over the next few years as big mortgage incentives are drop ped and a general election is held.

“Against this uncert ainty, IFAs should be advising customers to take penalty-free mortgage products to maximise their options.”

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