The Mortgage Operation has introduced the self cert discount mortgage, which is aimed at people who have trouble proving how much that they earn, such as the self-employed.
Self cert discount has a discount of 1.25 per cent, giving it a payable rate of 6.75 per cent for five years. The maximum loan to value is 90 per cent of valuation.
Among the options on offer are the ability to underpay, overpay, and have payment holidays. Interest is also calculated daily.
Over a five-year period the rate of 6.75 per cent is quite competitive. According to Moneyfacts the cheapest mortgage on the market on October 9, 2000 which offers the same features is the Norwich Union self-cert discounted mortgage. This has a discount of 1.55 per cent, giving it a payable rate of 6.45 per cent for two years.