The deals, funded by Mortgage Express, are only available through the network and Justine Tomlinson, marketing director at Mortgage Next, believes they will be very popular with its brokers.
“These products are not only offering highly competitive rates but also come with the benefit of no overhanging early repayment charges (ERCs). The three-year fixed buy-to-let product is also ‘fee free’ for remortgages, as no completion, legal or valuation charges will be made.”
The buy-to-let product is fixed at 5.29 per cent until 31 March 2009 with a five per cent ERC until that date. There is no completion fee, and valuation and legal fees are free for remortgages, but only if done through a Mortgage Express panel solicitor.
The 100 per cent plus deal has an initial rate of 5.49 per cent, which is discounted for three years by 1.05 per cent, and also has a five per cent ERC. There is a completion fee of £450.
Kevin Morgan, managing director of Consilium Financial Planning, believes the products are good value but has reservations regarding 100 per cent mortgages.
“I always try to discourage clients from taking out 100 per cent mortgages unless there are no other options. Psychologically, if the client has a five per cent deposit, it shows that they have thought about buying and aren’t just ploughing in. However, as a product, it does give people the opportunity to get onto the property ladder and at face value it seems very competitive.”
Morgan added: “The BTL product also sounds very competitive and clients often like to have the security of a three-year fixed rate. 5.29 is a good rate and the free legals is also a positive feature.”
