Type: Fixed-rate mortgage
Fixed term: Until August 31, 2013
Fixed rate: 6.69%
Minimum loan: £25,000
Maximum loan: Up to 90% of valuation subject to a maximum of £500,000, up to 85% of valuation subject to a maximum of £2m
Income multiples: Based on affordability
Conditions: Capital repayments of up to 10% a year allowed without penalty, available for purchases only, new build properties subject to a maximum of 85% of valuation
Arrangement fee: £999
Redemption fee: 5% of the amount repaid in year one, 4% in year two, 3% in year three, 2% in year four, 1% in year five
Introducer’s fee: Refer to lender
Tel: 08459 001110
RBS Intermediary Partners has fixed this deal at 6.69 per cent for loans up to 90 per cent of valuation.
London & Country technical manager Richard Morea says that longer term fixed rates such as this have increased in popularity as borrowers look for peace of mind. He feels this product is likely to sit well with those borrowers still active in the purchase market.
“The rate, at 6.69 per cent, is competitive, especially among deals available to brokers. But it will face competition from direct deals that shave up to 0.2 per cent off the rate,” says Morea.
He thinks the 10 per cent overpayment facility is in keeping with other products, as is the £999 fee, which can be added to the loan within the maximum LTV of 90 per cent. “The reducing early redemption charges of five to 1 per cent give good flexibility should the borrowers plans change,” he says.
In Morea’s view, this is a good deal overall for brokers, as the rate is close to the best direct deals. “However, it is undermined by RBS itself, as it offers a cheaper direct deal at 6.44 per cent,” he says.
The market leading five-year deal from Cheshire, fixed at 6.49 per cent, is suggested by Morea as the main competitor. It has a free valuation and is available to brokers. “Direct deals from lenders such as Halifax, C&G, HSBC and Britannia, will also provide competition, as they offer lower rates,” says Morea.
Suitability to market: Good
Competitiveness of rate: Good
Adviser remuneration: Good