Press
Nottingham finds an interest in commercial
The Nottingham
Commercial mortgage
www.thenottingham.com
Lender says...
The Nottingham has launched an interest-only commercial mortgage aimed at small to medium-sized businesses.
The product has a risk-based rate of between 1 per cent and 3 per cent on top of the commercial mortgage rate, depending on the applicant.
The product has a 1 per cent arrangement fee and a maximum loan-to-value of 75 per cent for owner-occupied or 60 per cent for investment purchases.
There is an early repayment charge of 1 per cent in the first five years with no extended tie in.
The minimum loan amount available is £50,000 and the maximum is £1m.
Gary Burrows, commercial lending manager for The Nottingham, said: "We are intent on delivering a quality-based, customer-focused service.
"A key priority for us is creating mortgage products that add more choice to our intermediary partners and their clients. The interest-only product emphasises this ongoing commitment."
Mr Burrows said the product was also complimented by the society's ability to approve and process a commercial mortgage application within 21 working days.
He said: "In my experience, offering a good product is only half of the battle. Just as important in the scheme of things is our ability to be able to move quickly once an intermediary partner, and their client, registers an interest with us.
"When this happens, we are able to respond very quickly, with 21 working days being a typical turnaround time for a commercial deal. We achieve this because we have an infrastructure that enables advisers to speak directly to an underwriter who is able to approve their clients' application in 24 hours subject to valuation."
Adviser says...
Chris Arnold, managing director of Somerset-based IFA Arnold Commercial Finance, said: "I like doing business with The Nottingham because the service levels are great and the products meet a real need.
"The new commercial mortgage represents a great deal for small businesses and we can see many opportunities to market this product to companies and sole traders."
Rating: HHHH
Skipton Building Society
Three-year fixed
www.skipton.co.uk
Lender says...
Skipton Building Society has relaunched its range of fixed rate mortgages. A three-year fixed rate product is available at 5.69 per cent up to 75 per cent loan-to-value with a completion fee of £599 or at a rate of 5.49 per cent for a fee of £1599.
Borrowers who wish to borrow up to 95 per cent loan-to-value can do so at a rate of 6.19 per cent for a fee of £599. A three-year fixed rate of 5.99 per cent is available up to 95 per cent LTV for a fee of £1599. These products are fixed until 30 April 2011 and the maximum loan amount available is £250,000.
There is an early repayment charge of 5 per cent in the first year, 3 per cent in the second year and 2 per cent in the third.
Adviser says...
Nina Yakas, adviser for Rhyl-based IFA Buckles Investment Services, said: "All these deals have a fairly competitive interest rate taking into account the associated arrangement fees.
"Assuming there is no overhang, the lower loan-to-value products are particularly attractive. Of course any other associated fees and incentives can make all the difference and must be taken into consideration."
Rating: HHH
Alliance & Leicester
Fixed rates
www.alliance-leicester.co.uk
Lender says...
Alliance & Leicester has launched a new range of buy-to-let and residential products.
A two-year residential fixed rate product is available at 4.99 per cent until 31 March 2010 when it reverts to the standard variable rate of 7.69 per cent.
The maximum loan-to-value is 90 per cent and customers can borrow up to £1m.
There is an arrangement fee of 2 per cent. Also available is a buy-to-let product fixed at 5.44 per cent until 31 March 2010 when it reverts to a tracker at 2.19 per cent above base rate. The product is available up to 85 per cent LTV with rental cover set at 100 per cent up to 75 per cent and 120 per cent for greater than 75 per cent LTV. The maximum loan amount available is £500,000.
Adviser says...
James Carter, principal of London-based IFA Independent James, said he thought the products had competitive rates but the arrangement fee could be steep.
He said: "They are competitive products for low loan sizes. The average fee is about £999 so for a mortgage of £100,000, £2000 would be an acceptable fee for the low rate of interest.
The buy-to-let product offers good criteria.You could argue by allowing borrowers to add the fee to the loan amount it enables clients to get an affordable mortgage."
Rating: HHH
Abbey
Fixed rates and stepped
www.abbey.com
Lender says...
Abbey for Intermediaries has added new long-term fixed rates and stepped products to its range.
The range includes a two-year fixed rate at 5.62 per cent. The product has a fee of £999 and is available up to 75 per cent loan-to-value. The early repayment charge is 3 per cent until 2 May 2010. The maximum loan size available is £550,000.
There is also a three-year fixed stepped product at 4.99 per cent in the first year, 5.69 per cent in the second and 6.39 per cent in the third year.
The product has a fee of £499 and is available up to 90 per cent loan-to-value.
There are early repayment charges of 3 per cent until 2 May 2013.
The maximum loan size available is £550,000.
There are no higher lending charges.
Ricky Okey, managing director of Abbey for Intermediaries, said: "We expect the stepped product to prove popular with first-time buyers. The steps up are very manageable and help people who want to reduce the cost of their mortgage in the first year."
Adviser says...
Kevin Morgan, managing director of Hertfordshire-based IFA Consilium Financial Planning, said: "How things change in a year. I like the rate on the two-year fixed rate but the fees are too much.
"I do not see how £999 can be charged for a mortgage. The stepped fixed rate starts off well but that is really going to hurt by the third year. The only people I can see this benefiting is those who are expecting rapid career progression."
Rating: HHH