by Peter Jacobs
A new mortgage product has been launched into the market by Legal and General where they don’t require a credit rating from one of the credit reporting agencies.
Normally banks and building societies entrust the data from one of the main credit reporting agencies in the UK such as Experian or Equifax to get data on applicant’s loan history with regards to payments and amounts outstanding but this new product does not rely on this data at all and won’t take out a simple credit check.
This is the only product in the mortgage market place which works like this and brings back the days of traditional underwriting and risk assessment. As the marketing information on this product quite rightly points out that a creditworthy borrower may get turned down for mortgages and other loans just because they product a low credit score.
Of course potential borrowers should still be completely honest with the information that they provide to Legal and General if they are thinking of taking out this product.
Two year fixed rate deal details
The new Legal and General 2 year fixed rate mortgage at a rate of 3.35% is a great market leading rate and is underwritten by Hanley Economic Building Society with a £100 booking fee and £1,399 administration fee with a maximum loan to value of 75%
The rate is fixed until 31st August 2012 and available for purchases ad remortgages for loans from £25,000 to £750,000 with free legal fees up to £250 for remortgages and an early redemption penalty of 2% of the loan until the end of the fixed rate period.
How to apply for this deal
Unfortunately like all good deals this is only available through the Legal and General mortgage club which is for brokers and agencies so if you want to apply for this deal you’ll need to find an agency that’s registered with the club. A bit of a pain but this rate is very low at the moment so pop along to your mortgage adviser and speak to them about this two year fixed rate deal from Legal and General if this is suitable for your circumstances.
The Legal and General mortgage club also has some other interesting deals you may want to explore especially if you need a higher than average loan to value on a fixed rate.
So there are plenty of deals around using Legal and General if you go to your independent financial adviser or mortgage broker.
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