Birmingham Midshires Solutions have provided a different angle on an age-old problem. How long should a client fix their mortgage for?
Its new fixed-rate range provides the choice to the applicant on fixing for between one and 10 years all at the same rate of 5.89 per cent. It even allows up to three terms to be applied to the mortgage balance so applicants who want to repay lump sums at specific dates can still benefit from fixing their rates on the remainder of the mortgage for a longer period at today's rates.
Although this may be suitable for the applicant who knows how much he wants to repay at set times in the future, for example, with maturing endowment policies/sharesave schemes, the product will probably find its place among applic-ants n
earing retirement who need certainty as they see their income reducing.
Having said that, there are other lenders who allow more than one fixed rate on one mortgage account who maybe do not offer as much flexibility in the chosen terms but, however, provide a better rate for the term offered.
Birmingham Midshires also provides a buy-to-let fixed rate of 6.99 per cent over two, three and five years and a self-certification rate of 6.49 per cent which both appear competitive in the current market while also providing more choice to applicants.
All these products benefit further from daily interest calculation and the relatively positive view of applicants who are contracted in IT-related occupations.
Steve Smith is a mortgage consultant at Sedgwick Independent Financial Consultants