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Self appraisal

UCB HOME LOANSSelf-Certification 3 Year Flexible FixedType: Flexible fixed-rate mortgage for self-cert applicantsFixed term: Three yearsFixed rate: 5.99%Minimum loan: £25,001Maximum loan: Up to 85% of valuation subject to a maximum of £350,000, up to 75% of valuation subject to a maximum of £500,000, up to 65% of valuation subject to a maximum of £750,000Income multiples: 3.25 times principal income plus second or 2.75 times jointFlexible features: Overpayments up to £500 a month, underpayments, payment holidays, lump-sum withdrawals, interest calculated dailyArrangement fee: £330Redemption fee: Six months’ interest in year one, five months’ interest in year two, four months’ interest in year threeIntroducer’s fee: Subject to negotiationTel: 0845 9401400UCB Home Loans’ self-certification three-year flexible fixed is fixed at 5.99 per cent for three years.

Priestfield Webber proprietor Malcolm Martin regards this deal as a valuable addition to the range of fixed-rate products available to intermediaries. He says: “This is an excellent, flexible shortterm to medium-term fixed rate for self-employed clients who want to take advantage of a true self-certification product.”

Martin says he likes the usual array of flexible features such as overpayments, underpayments, payment holidays and the ability to borrow back previous overpayments.

He says: “The rate is keenly priced when compared with the market. An additional feature is the ability to choose a mixture of fixed and tracker rates within a single mortgage, thereby balancing the client’s exposure to interest rate fluctuations.”

Martin feels that there is little to dislike about the product although he thinks a cashback incentive for remortgages would have made the scheme even more attractive.

Discussing possible competitors, Martin says: “The main competition is provided by Northern Rock, which has a slightly cheaper rate at 5.59 per cent and the benefit of a £1,000 cashback to assist in expenses. However, the UCB scheme is a true self-certification scheme compared with Northern Rock, which will invariably require additional information regarding income verification.”

BROKER RATINGSSuitability to market: GoodFlexibility: GoodCompetitiveness of rate: GoodAdviser remuneration: AverageOverall 7/10

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