View more on these topics

Woolwich deal good ata stretch


First Time Buyer Two Year Fixed Rate

Type: Fixed-rate mortgage

Fixed term: Until November 30, 2009

Fixed rate: 6.29%

Minimum loan: £25,000

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

Income multiples: Based on affordability

Conditions: Mortgage reserve option available

Arrangement fee: £595

Redemption fee: 3% of the amount repaid in the first two years

Introducer’s fee: Refer to lender

Tel: 0845 070 1567

This Woolwich mortgage is a fixed rate deal at 6.29 per cent aimed at first-time buyers.

Discussing how the product will be received by IFAs, Mint Financial Services IFA Adrian Kidd says: “The only way I see this product as good for IFA’s is where clients are struggling with an income multiple or stretch. There are plenty of other rates – fixed or discounted – that kill this rate. “

However, he observes that the affordability based income multiples enable clients with a high credit score to borrow five times their main income, whereas some of the other lenders will lend 3.5 times. He also believes the set up fee is very competitive.

His main gripe about the product is that the fixed rate is not competitive. He thinks there are too many competitor products to list, but notes that Halifax and Nationwide do a variety of two, three and five-year rates that are up to 0.3 per cent cheaper than Woolwich. “Coventry has a 5.85 per cent rate that would give a high income multiple. Cheshire has a two-year discount at 5.69 per cent that has a £899 set up and that’s a good rate with low fee. I can see a maximum 0.25 per cent increase in rates if we get another hike by the Bank of England.”

Kidd concludes: “Woolwich has the worst online facility for me in the market. It always has problems being offline, especially in last few days. It has also shifted some back office operations to India which I think is a negative as generally the staff have been poorly trained as they are poorly paid. It is purely a bottom-line exercise for the company – I spoke to a woman there today and she was clueless.”


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

Overall 2/10


DB Mortgages product changes mean it will not honour previously accepted DIPs

DB Mortgages has introduced a higher credit score pass threshold for all new business as well as capping maximum sub-prime loan to values at 75 per cent.The changes mean that there is a high chance many applications will not pass the new strict credit scoring system that DB Mortgages has put in place.The changes to […]

Acronym and acrimony

Last week’s comment piece in Money Marketing in which Towry Law chief executive Andrew Fisher suggested that Aifa really stands for Amalgamation of Ignorant Flat Earth Advocates is unlikely to win him many friends among readers of this newspaper.

Best cellars

As in the world of wine, investment tastes are inclining towards the emerging nations

Value remains within European equities

By Rob Burnett, Neptune European Opportunities Fund

In recent months, investors have become more pessimistic about both the European and the US economic outlook and yet stockmarkets have pushed on to new highs. Some would argue that this is a worrying divergence. We would take the opposite view. This appears to be classic bull market behaviour. A wall of worry has been rebuilt, and stockmarket resilience should be taken as a sign of strength. The market is discounting an improving economic outlook ahead, particularly in the south of Europe.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm