Cahoot has jumped on the bandwagon of mortgage market when it launched a range of fixed rate, tracker and flexible mortgages in an understanding with its parent company Abbey. If the online banker is successful in its trial run, it will introduce more offerings without the aid of Abbey.
While the fixed and tracker mortgages are offered to customers at 95 per cent loan-to-value (LTV), the flexible option is offered at 90 per cent LTV. These mortgages can be fixed over the phone without having to interact with mortgage advisor physically.
"With this new range of competitive mortgages, we're dipping our toe in the market and testing the demand for mortgages from Cahoots," said John Goddard, managing director, Cahoot.
Cahoot offers these mortgages with options of both lower booking fee and a higher rate or vice-versa. The Flexible Plus mortgage has features including overpayments, underpayments and payment holidays. There is also an offset facility using which one can reduce the amount of interest owed thus helping the borrowers to pay off their mortgage sooner.
The two-year tracker is available at both 4.34 per cent and 4.54 per cent. The option of loaning is up to 95 per cent of the property value. The two-year fixed rate deal comes at 4.49 per cent, while the flexible plus mortgage is available at 4.90 per cent.
Currently, the figures released by the mortgage industry have shown that customer confidence in mortgage market has returned. It has been reported recently that the competitive deals’ being offered by different players has encouraged more people to buy homes.
These trial mortgages of Cahoot will be offered till the next year. This online bank which was launched in 2000 has gained popularity in a short span of time. It has, in fact, won the Moneyfacts best current account award three years in succession.
Posted
on : Mon, 10 Oct 2005 20:20 GMT | Mortgages News
By : Chris Rowe
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