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West Brom aims for sweet combination


All In 4.95%

Fixed-rate mortgage followed by discount

Fixed term:
12 months

Fixed rate:

Discounted term:
12 months

Discount: 1%

Minimum loan:

Maximum loan:
Up to 95% of valuation subject to a maximum of £500,000

Income multiples:
Up to 3.75 times principal income plus second or three times joint

Six months&#39 free mortgage payment protection insurance, £300 cashback, free legal fees for remortgages, free valuation up to £350, compulsory West Bromwich buildings insurance

Arrangement fee:

Redemption fee:
1% for the first 2 years, interest to the end of the month thereafter

Introducer&#39s fee:
0.35% of original loan subject to £750 maximum

Tel: 0845 456 7418

This deal from West Brom combines a fixed rate with a discount and is available for loans up to 95 per cent of valuation.

London & Country mortgage specialist James Cotton feels this is a mortgage of two faces. He says: “The fixed rate is good, but a bigger discount would make it a lot better. It has a good fees package, free valuation and either free legal work or £300 cashback. The higher lending charge is also free but the lender insists that borrowers take out its own buildings insurance.”

Cotton thinks the rate is good compared with standard two-year fixed rates. However, he feels the 1 per cent discount that follows is less than competitive. He says: “As is often the case with such &#39hybrid&#39 deals, one component is good, the other not so good.”

Cotton says West Brom is known for providing good deals for first time buyers and good fees packages. However, he feels some people looking for a fixed rate may be more comfortable fixing for the full two years rather than being tied in to a floating rate for the final year. He says: “On the other hand, if a borrower were not concerned about short-term interest rates, a standard discount or tracker would be more suitable.”

Northern Rock&#39s rate of 5.29 per cent, fixed for 18 months, and Coventry&#39s two-year capped rate at 4.99 per cent are seen as the main competition. He concludes: “For those with a larger deposit, standard two-year fixes are now available as low as 4.79 per cent.”


Suitability to market: Average
Competitiveness of mortgage rate: Average
Adviser remuneration: Good
Flexibility: Poor

Overall 6/10


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