View more on these topics

Sun Bank gets the five-year fix itch

Sun Bank, the mortgage arm of Sun Life Financial of Canada, has brought in the five-year fixed rate mortgage.

The mortgage has a fixed rate of 5.74 per cent for loans up to 75 per cent of valuation until September 1, 2006 and is aimed at both first time buyers and people looking to remortgage. After the fixed rate period the mortgage will revert to Sun Bank’s standard variable rate, which on May 29, 2001 was 6.74 per cent.

The Sun Bank mortgage comes with redemption penalties of 5 per cent of the advance during the fixed rate period and has an arrangement fee of £395.

According to Moneyfacts on May 29, 2001, there is a more competitive five-year fixed rate mortgage. This is the five-year fixed rate mortgage from the Leeds & Holbeck Building Society, which has a fixed rate of 5.49 per cent for loans of up to 90 per cent of valuation until September 1, 2006. The mortgage has a less competitive early redemption penalty of six per cent of the advance in the first three years, reducing to three per cent in the next two years. It also has an arrangement fee of £395, but unlike the Sun Bank mortgage deal, it comes with compulsory buildings and contents insurance.

Based on a £100,000 mortgage, according to London & Country Mortgages the monthly payments for the Sun Bank mortgage would come to £628.50. Payments for the Sun Bank mortgage would cost £620.64 a month.

Recommended

Gateway may be locked to IFAs

Having looked at the proposed Child Trust Fund and some current tax-effective savings and investment opportunities for children over the last two weeks, I would like now to turn my attention to the other new savings proposal in the Government&#39s consultation document. Greatest publicity seems to have been given to the Child Trust Fund but […]

Woolwich – Open Plan Offset Together Mortgage

Friday, 1 June 2001.Type: Flexible tracker-rate mortgage.Tracker term: Term of loan.Tracker rate: Bank of England base rate plus 0.75 per cent.Minimum loan: No minimum as balance is offset with credit balances.Maximum loan: Up to 95 per cent of valuation subject to no maximum.Income multiples: 3.25 times principal income plus second or 2.5 times joint.Features: Underpayments, […]

Second time around

Second-charge loans are growing rapidly in popularity. Many mortgage advisers are finding that the second charge route is more favourable for their clients when compared with remortgaging or a further advance on their existing home loan – or even a personal loan. In the past, there has been a general lack of understanding and misconceptions […]

Fidelity to overhaul supermart pricing

Fidelity is set to overhaul its fund supermarket pricing structure after pressure from prov-iders to increase their share of the platform&#39s revenues. The climbdown over pricing follows Artemis&#39s decision to withdraw from the platform earlier this year. Artemis had complained that the benefits from being on the platform were not worth their while in proportion […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment