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Standard Life pays off 1% of loan capital every two years

Standard Life Bank is offering a capital reward mortgage which promises to pay 1 per cent of a customer&#39s outstanding capital every two years for the full term.

The product has a current standard variable rate of 5 per cent for loans to value of up to 90 per cent, rising to 5.2 per cent on LTVs of 95 per cent.

Maximum loan on the product is £750,000, subject to a maximum LTV of 75 per cent.

Once the bonus is paid into the mortgage account, borrowers can withdraw against it for their own purposes. Withdrawals have to be at least £1,000, which means the minimum loan would have to be £100,000.

Arrangement fee is £150. The loan must be repaid by 65. Overpayments of at least £1,000 are permitted.

Director of sales and marketing David Macmillan says: “Other lenders may focus on the benefits of overpayment. We are taking this further by overpaying for our customers by giving a regular 1 per cent bonus every two years on the outstanding capital.

“If customers continue to pay the same monthly amount as before, they, too, will be overpaying.”

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5.45% fix for non-conforming loan

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Lawyers say CP121 may be open to a legal challenge

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FSA is accused of U-turn on single-pricing

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&#39Quality mark could boost stakeholder&#39

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Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders

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