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TMO goes short on redemptions

The Mortgage Operation is offering a three-year mortgage fixed at 6.59 per

cent, with the redemption period extending a year after the fix ends.

Clients can cut the period of the redemption penalty to the fixed per^_iod

at an additional 0.1 per cent on the rate.

TMO says the loan is in response to public demand
for short redemption

lock-ins
and flexible payments with-
out penalties. It is being

fun^_ded by Halifax Mortgage Services.

The loan applies to purchases and remortgages and also features mortgage

indemnity guarantee-free cases up to 90 per cent loan to value.

The mortgage can also be used for raising capital. Interest is calculated

on a monthly basis and the loan is also
fully portable. Advisers who

complete a “short redemption fixed” mortgage will get a procuration fee of

165.

TMO marketing director Josh Cooper says: “Increasingly, the

mortgage-seeking public are demanding short redemption lock-ins and a

degree of flexibility around overpayments without incurring a penalty. We

expect this product to become a very
popular choice.”

First Active is offering a
two-year stepped discount rate on its

current account flex-
ible mortgage.

A discount of 1.5 per cent applies to First Active&#39s standard variable

rate in the first year followed by a 1 per cent discount in the second

year.

This takes the rate down in year one to 6.24 per cent up to 75 per cent

LTV, 6.49 per cent up to 85 per cent LTV and 6.74 per cent up to 95 per

cent LTV.

The mortgage is designed to be totally flexible, with no redemption

penalties, compulsory insurances or mortgage indemnity guarantee.

Overpayments are allowed at any time for any amount and interest is

charged on a daily basis. The money can be drawn down again at any time.

The loan offers full banking facilities, including a chequebook and

cashcard, and there is an option to pay in salary.

First Active spokeswoman Natasha Plackett says: “With many people

expecting interest rates to peak this year and then fall next year, the

higher discount in the first year is
particularly attractive.”

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