View more on these topics

Self-cert mortgage in the Pink

Pink Home Loans has introduced the exclusive self-cert mortgage.

Aimed at self-employed people who have had trouble getting a mortgage in the past because of difficulties in proving their income, it has a discount of 2.65 per cent for the first six months of the mortgage, giving it a payable rate of 3.98 per cent for loans of up to 85 per cent of valuation.

After the discounted period the mortgage will revert to a rate of 1.38 per cent above the Bank of England base rate. Applicants must have at least six months’ history of working with their current employer.

The self-cert market is growing. Birmingham Midshires has announced that it will join the market, along with Bradford and Bingley. One reason for growth in this area is that lenders are able to charge higher interest rates for what is perceived to be higher risk lending. Self-employed people are seen as being higher risk than employed borrowers because their income may fluctuate depending on how much money they earn and what kind of job they have. Some lenders require two years worth of bank statements and accounts to prove their income and self-cert mortgages normally require more equity. Ordinary mortgages can have a loan to value of up to 95 per cent. However self-cert mortgages normally have a loan to value of between 75 and 90 per cent.

According to Moneyfacts on June 8, 2001 the Pink Home Loans mortgage is the most competitive on the market. The next most competitive is from Bristol & West building society and has a discount of 2 per cent for the first six months of the mortgage for loans of up to 85 per cent of valuation. After the discounted period the mortgage will revert to 1.75 per cent above the Bank of England base rate.

Based on £100,000 mortgage for a loan to value of 85 per cent, London & Country Mortgages says that monthly payments for the Pink Home Loans mortgage come to £528.45. Monthly payments for the Bristol & West mortgage come to £591.27.

Recommended

Chelsea Building Society – Portfolio Extra Fixed Rate Bond

Friday, 8 June 2001.Type: Unit linked bond and high interest account.UNIT LINKED BONDAim: Income and growth by investing in up to six Norwich Union investment funds.Minimum investment: £7,000.Fund links: With-profit, guaranteed, defensive managed, cautious managed, balanced managed, property, deposit, gilt, global bond, corporate bond, higher income bond, UK index tracking, with-profit income fund, UK equity, […]

Premier Portfolio Managers – Premier Zero Preference Fund

Thursday, 7 June 2001.Type: Oeic.Aim: Growth by investing in zero-dividend preference shares of split-capital investment trusts and other closed ended funds.Minimum investment: Lump sum £1,000, monthly £50.Investment split: 100 per cent in zero-dividend preference shares.Yield: 8 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 5 per cent, annual 1.25 per cent.Commission: Initial 3 per cent, annual […]

JP Morgan Fleming puts investment trusts on pension map

JP Morgan Fleming Asset Management has unveiled an individual personal pension that focuses on investment trusts. The investment trust personal pension account is designed to provide investors who do not want a stakeholder pension with an equally simple pension arrangement. Investors can choose from a cash fund and three investment trusts&#45 managed growth, claverhouse and […]

Pink continues to focus on self-cert market

Pink Home Loans has teamed up with Verso with the introduction of the exclusive self-cert mortgage.The product has a fixed rate of 5.98 per cent for the first three years of the mortgage for loans of up to 85 per cent of valuation. Pink Home Loans has targeted the mortgage at self-employed people who can […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com