View more on these topics

Short-term fix from ICMG

Insurance Company Mortgage Group (ICMG) has introduced a one-year fixed rate buy-to-let mortgage.

The mortgage is fixed at 3.99 per cent until September 3, 2002 and is available to all borrowers for loans of up to 80 per cent of valuation. Any number of properties can be bought within a total advance of £1m.

There is an extended tie-in, so borrowers who pay the mortgage off before September 3, 2004 must pay an early redemption penalty of six months&#39 interest.

According to Business Moneyfacts on October 2, 2001, this is the most competitive fixed-rate for mortgages of this type and three other lenders — Pink Home Loans, Mortgage Express and The Mortgage Operation — offer virtually identical products.

The Mortgage Express deal has a £325 arrangement fee like the ICMG mortgage, but it has the advantage of offering flexible features and borrowers are tied in for a shorter period. If borrowers pay the mortgage off before September 3, 2003, they must pay six months&#39 interest as an early redemption penalty.

Borrowers can overpay a maximum of double their monthly repayments without incurring this penalty. They can also benefit from the daily calculation of interest, make underpayments, take payment holidays and lump sum withdrawals.

However, some borrowers may be looking for a longer fixed-rate as the Bank of England base rate currently stands at 4.75 per cent and they may feel interest rates are unlikely to fall further.

Recommended

Genesis amethyst mortgage aims at fixed rate market

Genesis Home Loans is hoping that the sparkle of its new mortgage will appeal to borrowers.The Genesis amethyst fixed rate mortgage is aimed at the self-certification market, made up of employed and self-employed people who have had trouble getting a mortgage as they have found it hard to prove how much they earn.The mortgage has […]

Old Mutual hedges towards UK expats

Old Mutual Asset Managers has introduced an offshore hedge fund that is available to high-net-worth UK expatriates.The Old Mutual global equity market neutral fund is designed to meet demands for a hedge fund from investors in South Africa, where the company was founded. It is not available in the UK, but it is being marketed […]

Only £20bn in life office coffers as assets plunge

The life industry as a whole has only £20bn in excess capital to support with-profits business, plummeting from the £130bn which was available at the end of 1999.Some companies have negative excess capital, such as Equitable Life, Alba Life, and Royal & Sun Alliance Life & Pensions. Friends Provident has marginal excess capital despite the […]

Stakeholder increases pension take-up says Virgin Direct

Stakeholder is responsible for a 250 per cent rise in the number of people starting a private pension according to Virgin Direct.Virgin points to ABI figures which show 535,000 individual pensions were taken out since April, which is a rise of 247 per cent on last year. Virgin says its pensions sales have more than […]

International jurisdictions

By Neil Jones, Canada Life Investing through international providers has grown in popularity over recent years as investors seek out the benefits of gross roll-up and the wider range of investment options that can be available. When considering a recommendation for a lump sum investment, not only does the adviser have to select a suitable tax wrapper […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment