Type: Discounted-rate self-cert tracker mortgage
Discounted term: Until September 30, 2006
Payable rate: 6%
Tracker term: Lifetime of loan
Tracker rate: 1.79% above Bank of England base rate
Minimum loan: 25,005
Maximum loan: Up to 85% of valuation subject to a maximum of 500,000, up to 80% of valuation subject to a maximum of 800,000, up to 75% of valuation subject to a maximum of 1m
Income multiples: Up to 3.5 times principal income plus second or 2.75 times joint
Flexible features: Overpayments, underpayments and payment holidays for up to six months a year, lump sum withdrawals of at least 500, interest calculated daily
Conditions: 14 days notice must be given for use of overpayments, underpayments, payment holidays and lump sum withdrawals, maximum 12 lump sum withdrawals a year
Arrangement fee: 499
Redemption fee: None
Introducers fee: 0.5% of original loan subject to a 10,000 maximum
Tel: 08457 253253
Flexi 85 from The Mortgage Business is a self-cert tracker mortgage with flexible features that is available to salaried and self-employed borrowers.
Brian Pack Financial Services principal Brian Pack regards the re-entry of The Mortgage Business to the marketplace as welcome, especially as it opens another avenue for those who require a true self-cert with flexibility.
He says: “The good features are the deals availability to loans up to 85 per cent of valuation, no early repayment charges . The interest rate of 6 per cent, then 6.54 per cent, is competitive and the income multiples are average. The adviser remuneration is good.”
One feature Pack does not like about the product is the arrangement fee of 499, which he sees as evidence of The Mortgage Business joining the trend for higher fees. He thinks the main competition will come from Bristol & West, Future Mortgages and Bank of Ireland.
To conclude Pack says: “The fuss about self-cert is reducing and the product will take its place on the mortgage introducers shelf again.”
Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Good