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Product Focus: Mortgages

Product Focus: Mortgages

Category: Mortgages

Updated: 27/01/2010
First Published: 25/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Research compiled by Moneyfacts has found a record margin of 3.14 per cent between the average two year fixed rate mortgage of 5.18 per cent and the two year swap rate of 2.04 per cent.

Further research has recently shown reductions in the availability of fixed rate mortgages and a fall in the average loan to value, which may leave borrowers feeling dejected, although there are still some products that may suit customer's needs.

NatWest Mortgage Services – 2 Year Fixed

NatWest's two year fixed deal has a rate of 3.69 per cent until 31st October 2011. Borrowers must pay a booking fee of £799. Maximum loan to value is 75 per cent, with a minimum advance amount of £25,000. Overpayments can be made by either lump sum or regular methods, with the option to reduce existing capital by up to 10 per cent. This deal is available to home movers only.

First Direct – 3 Year Fixed

With a rate of 4.24 per cent, this deal offered by First Direct's is currently top of the three year fixed mortgage tree. Despite offering a competitive rate, customers can only borrow up to 60 per cent of the property value and must pay a booking fee of £499, along with a £499 arrangement fee. There are, however, a plethora of flexible features, including underpayments, overpayments and payment holidays. Borrowers can also offset their savings against their mortgage, so must open or have an existing First Direct current account.

The Co-Operative Bank – 5 Year Fixed

This deal offers a rate of 4.99 per cent until 30th September 2014. The maximum loan to value for remortgage and homeowner customers is 75 per cent, while advances range from £25,000 up to £1m. Borrowers must pay an arrangement fee of £995. Customers looking for flexible features will be pleased to see this product offers overpayments, underpayments and payment holidays.

HSBC – Variable

This product offers a rate of 2.95 per cent with an underlying rate of base rate plus 2.45 per cent. Customers can borrow up to 75 per cent of the property's value for both remortgages and home moves. A booking fee of £799 is payable. There is the option to make overpayments by either lumps sums or regular methods.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.