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Product Matters

The Mortgage Business has followed otherspecialist lenders such as Platform, GMAC and BM Solutions in sharpening up its rates.

This may well be a signal of intent from the specialist lender which only returned to the market in February after withdrawing products in July 2004. It also suggests that the service and IT issues it suffered from last year have been resolved.

The portfolio has a distinct focus on self-cert products although full status products are available. Borrowers have numerous options such as flexible features, cashback and let to buy. Most deals have the benefit of no early repayment charges.

The rates are on a par with those on offer from other specialist providers. For example, TMB has a two-year tracker at 5.6 per cent while both BM Solutions and Platform have respective two and three-year trackers at 5.59 per cent (albeit with ERCs) for loans up to 85 per cent loan to value.

New to the range is the offer of 1,000 cashback on its three-year tracker (for loans over 100,000) at 5.94 per cent. As it is a fixed amount and not a percentage of the loan, the cashback will be less appealing for bigger loans although it could cover remortgaging costs. Help with costs is also on offer from GMAC in the shape of no application fee and free legals – available on its two-year tracker at 5.74 per cent up to 85 per cent LTV.

What is most apparent, however, when looking at TMB’s new portfolio is the lack of variety in the type of rate. All the deals track bank base rate so anyone looking for the security of a fix will have to go elsewhere.

James Cotton is a mortgage specialist with London & Country

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