View more on these topics

Woolwich launches City Bonus mortgage

Woolwich has launched what it is calling the ‘City Bonus’ mortgage to target bankers, brokers, consultants and entrepreneurs who expect large bonuses this winter.

It says that only those who wish to borrow over £500,000 need apply. The new discounted tracker with an offset facility starts as a 0.51 per cent discount below the bank’s base rate offering an initial pay rate of 4.24 per cent.

This carries on until July 2007 when it reverts to base rate plus 0.49 per cent (5.24 per cent at present ) for the life of the loan. It has a £1,499 fee with no early repayment charges.

Woolwich head of mortgages Andy Gray says: “The key to the mortgage is that it offers full offset facilities which could be of great help to customers who want to get into the market now.

“Most people expecting a large bonus in January or February will already have a good idea if they are going to get one. The problem is it doesn’t get paid until the New Year and if they want to buy a property now they might be restricted by what they can borrow and by the choice of mortgage type. If they wait for the bonus the property may have gone.

“The beauty of this loan is that customers can borrow now at a lower rate whilst they are waiting for the bonus to be paid. When they receive the bonus, they can then offset against the loan, reducing the payments and keeping costs down or simply pay off part of the mortgage without charge. It really is a flexible loan designed for those with large lump sums going into their account.”

Recommended

74-Year-old client switches firms after being refused Asp

Specialist pension IFA Richard Jacobs has defied Government restrictions on alternatively secured pensions by moving his client to another insurer when refused an Asp on a personal pension by Skandia. Jacobs, director of Richard Jacobs Pension & Trustee Services, argues if he had not advised his client to move elsewhere he would have not been […]

IFAP service delivers £54m value to member IFAs

IFA Promotion’s ‘Find an IFA’ referral service delivered £54m of commission value to member IFAs last year with a 16 per cent increase in consumer and business enquiries.The independent study commissioned by IFAP found a 15 per cent year on year increase in income and an increase of 270 per cent since 2000.The figures show […]

Consumers happy to buy life cover without advice

Advice is the least important feature that consumers look for when taking out life cover, with low premiums and an efficient application process being the top-placed priorities. Research from Hargreaves Lansdown found that only 11 per cent of 428 people surveyed seek financial advice when taking out life cover while 68 per cent focus on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment