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Product matters

Bank of Ireland last week launched a new range of mortgages aimed at those looking to borrow between £1m and £2.5m.

It will lend up to four times single income or 2.75 times joint with a maximum loan to value of 70 per cent up to £2m and charge no arrangement fee.

The rates are not as keen as core products, so Bank of Ireland is focusing on the premium service. Intermediaries have direct access to dedicated underwriters who have a good understanding of complex income streams, essential for loans of this size.

The range consists of five different rates including two and three-year discounts and three and five-year fixes, but one to highlight is the flexible lifetime tracker at 0.75 per cent above base rate.

It is currently lower than both their discounts and offers greater flexibility with no early repayment penalty at any time. It is an attractive product and could be used to provide an overpayment facility by mixing and matching with another product.

Other lenders looking to attract more big-ticket business are Halifax, which has recently increased the maximum loan size on its core range to £2m, and Accord Mortgages, which has a new Elite scheme. It has a maximum loan of £5m and a current discount rate of 5.19 per cent and is principally aimed at directors of FTSE 100 companies and again focuses on the service.

It aims to issue a mortgage offer within five working days and does not need income references as they can use public information. The arrangement fee is 0.1 per cent of the loan.

David Hollingworth is a mortgage specialist at London & Country

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