Jumbo solution for hefty mortgages
Borrowers needing a mortgage of £1
million or more should take a look at the Jumbo Loan Drop Lock from
broker John Charcol. Lorna Bourke reports.
The product is a lifetime tracker for
the term of the loan, at bank base rate plus 0.19% giving a pay rate
of 4.94%. There is no arrangement fee and no early repayment charge
and the lender is the Woolwich.
Property price increases have thrust
a further 60,000 UK homes over the £1 million valuation mark in the
last year, prompting more and more demand for larger than average
loans. The drop lock facility guarantees the borrower the right to
switch to any of the lender’s fixed rates whenever they wish.
Ray Boulger, technical director of
John Charcol, said: ‘There is considerable uncertainty over future
interest rate movements but this mortgage puts the borrower in the
driving seat.’ Woolwich has a very competitive 10-year fix at the
moment at 4.98% and its cheapest two-year fix is 5.49%.
Maximum loan-to-value is 85% with a
minimum loan of £1 million. A similar deal with a loan to value of
80% with a minimum loan of £50,000 is available direct from
Woolwich. The package offers free valuation and legals on remortgage
and an arrangement fee of just £75. The mortgage is fully flexible
allowing overpayments, payment holidays, underpayments and a
drawdown borrow-back facility.
Published: 09:50 Wednesday 06
September 2006
By: Tim Sharp, NMA News Correspondent
|
