Short Term Fixed Rate
Northern Rock is offering a year fixed rate deal until 1 August 2008, at a rate of 4.79%, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.59%. The overall cost for comparison is 6.5% APR. An Early Repayment Charge is payable if you repay all of the mortgage during the fixed rate period. There is a valuation fee of £455 and an arrangement fee of £695 that can be added to the loan.
Long Term Fixed Rate
Northern Rock is also offering a fixed rate deal until 1 August 2011, at a rate of 5.19%, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.59%. The overall cost for comparison is 6.4% APR. An Early Repayment Charge is payable if you repay all of the mortgage during the fixed rate period. There is a valuation fee of £455 and an arrangement fee of £695 that can be added to the loan. There is also a cashback of £750 available.
Short Term Discount or Tracker
BM Solutions is offering a two-year tracker scheme at the Bank of England base rate minus 0.25%, equating to 4.50%, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.74%. The overall cost for comparison is 6.7% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage within two years. There is a valuation fee of £350 and an arrangement fee of £500 that can be added to the loan.
Long Term Discount or Tracker
Alliance & Leicester is offering a five-year discounted rate scheme at its standard variable rate less 1.8%, equivalent to a current rate of 4.79%, reverting to the standard variable rate for the remaining term of the mortgage, currently 6.59%. The overall cost for comparison is 6.1% APR.
There is no penalty upon repayment of this loan.
There is valuation fee of £280 and an arrangement fee of £99 that can be added to the loan.
Cashback
Chelsea Building Society is offering a 6% cashback until 30 September 2011, fixed at a rate of 6.49%. The overall cost for comparison is 6.8% APR. There is a requirement to repay the cashback on early repayment of the loan within the fixed rate period. There is a free valuation but an arrangement fee of £545 that can be added to the loan.
Buy to Let
BM Solutions is offering a two-year tracker buy-to-let deal at the Bank of England base rate plus 0.19%, equating to 4.94%, reverting to their standard variable rate, currently 6.7%, at the end of the period. The overall cost for comparison is 6.8% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the first two years of the loan.
There is a valuation fee of £350, while the arrangement fee of £1500 can be added to the loan.
There is no guarantee that it will be possible to arrange continuous letting of the property nor that the rental income will be sufficient to meet the cost of the mortgage.
Remortgage
For those looking to remortgage, the Bank of Scotland is offering a tracker at the Bank of England base rate plus 0.19%, equating to a current rate of 4.84%, until 30 September 2008, reverting to the standard variable rate of 6.65% for the remaining term of the mortgage. The overall cost for comparison is 6.6% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the fixed rate period. This mortgage offers a free valuation, free legal work and no arrangement fee.
Your existing lender may impose penalties if you switch your mortgage to a new lender.
Lifetime Tracker
Norwich & Peterborough is offering a lifetime tracker deal at the Bank of England base rate plus 0.35% for the full term of the loan, currently equating to 5.1%. The overall cost for comparison is 5.4%. There is no Early Repayment Charge on this loan, but there is a valuation fee of £220 and an arrangement fee of £599, which can be added to the mortgage.
100% Mortgage
Norwich & Peterborough is offering a three-year discounted deal at 1.1% off its standard variable rate, equating to 5.39%. This reverts to the standard variable rate for the remaining term of the mortgage, currently 6.49%. The overall cost for comparison is 6.4% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the discount period. There is a valuation fee of £220, but no arrangement fee.
Capped Rate Mortgage
Skipton Building Society is offering a tracker mortgage, capped for three years, at a current rate of 5%, reverting to the standard variable rate for the remaining term of the mortgage, currently 5.89%. The overall cost for comparison is 5.9% APR. An Early Repayment Charge is payable if you repay all or part of this mortgage during the capped rate period. There is a valuation fee of £220, and an arrangement fee of £449 that can be added to the loan.
Figures based on £150,000 purchase price or value and £100,000 repayment mortgage over 25 years. All figures are subject to revision, but current at time of going to press.
