CompaniesMay 1 2013

Launch Pad: Mortgages

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Richard Barker, product manager for N&P, said: “This newest three-year product complements our two year and five-year fixed-rate mortgages at 60 per cent loan-to-value.

“The costs associated completing a mortgage can add up and, in the case of remortgaging in particular, may even deter homeowners from switching to a better deal which will save them money.”

Product specifics:

Available up to 60 per cent LTV

Fee: £295

Incentives: free valuation, and either free legal fees for remortgages or £200 cashback for home buyers.

Overpayment: Borrowers can overpay up to 10 per cent of their mortgage each year without penalty, up to an annual limit of £10,000.

Adviser view:

Mark Sikora, adviser for London-based GMP Independent Financial Advisers, said: “Best buy is such an anachronistic term to use these days and no more than a marketing ploy. Best buy for who, over what period, under what circumstances and in what market conditions?

“We select mortgage products to ‘best match’ client needs, taking myriad criteria into consideration. However is it a best buy in the old-fashioned sense? Well actually, no. As an example, Nationwide probably pips the post with its 2.39 per cent three-year fix and its standard rate variable after the fixed term is currently 1 per cent lower.”