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Sun Bank goes halves on flexibility

Sun Bank has designed fix & flex, a flexible mortgage that allows borrowers to split their repayments between a fixed rate and a variable rate.

The mortgage is available for loans of up to 90 per cent of valuation. Under the fixed rate component, which is stepped over two years, borrowers pay 4.74 per cent until January 1, 2002 and then 5.74 per cent until September 1, 2003. The variable rate part is currently 6.24 per cent.

If borrowers redeem the fixed rate component in the first two years, they must pay five per cent of the advance. They can make underpayments, overpayments, take payment holidays and make lump sum withdrawals, while interest is calculated daily.

According to Moneyfacts on May 25, 2001, Standard Life Bank offers a similar mortgage called freestyle plus. It is available for loans of up to 90 per cent of valuation and allows borrowers to split repayments between a 1.76 per cent discount for six months — giving a payable rate of 4.49 per cent — and a two-year fixed rate at 5.99 per cent.

Borrowers who redeem in the first year must pay three months&#39 interest on the discounted part of the loan and it has the same flexible features that Sun Bank offers.

The Sun Bank mortgage is not as competitive as the Standard Life mortgage because it has higher interest rates, has an arrangement fee whereas Standard Life Bank does not and its tie-in period is twice as long as Standard Life&#39s.


Press boost Fidelity Isas

IFA recommendations helped Fidelity get better press coverage than any other fund management group during the Isa season, according to PressWatch.PressWatch&#39s new Fund-Watch initiative tracked national press coverage of Isas, unit and investment trusts between January and April and found IFA support for a particular fund has a hugely significant impact on its track record […]

Mutual message is spin over substance

The Halifax has consistently argued that mutuals may have a role to play in the UK but only small mutuals such as credit unions. Bigger mutuals will face increasing pressure to convert.We have also argued that the assumption that mutuals such as building societies are, by their very nature, better than their plc counterparts is […]

Mortgage Next goes for fixed fee saver

Specialist mortgage broker Mortgage Next has introduced the buy to let five year fixed fee saver mortgage.The mortgage has a fixed rate of 6.23 per cent for loans of up to 75 per cent of valuation for the first five years of the mortgage, after which it will convert to an interest rate of 1.75 […]

Protected funds will take over, says Close

Protected funds are going to overtake with-profits as a low-risk smoothed investment vehicle, predicts Close Fund Management.It says life offices have not being paying out to policyholders the full ret-urns on with-profits and the continuing concern surrounding the obscurity of with-profits policies will turn investors towards protected funds.It says protected funds, which can guarantee from […]

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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