View more on these topics

Yorkshire slams Saffron’s low-start deal for divorcees

Yorkshire has hit out at Saffron’s six-month interest-free product targeted at people trying to get back on their feet after divorce.

The product, which was launched last week, has 0% interest for the first six months and a discounted rate of 0.7% off the standard variable rate for the next 30 months. Following the discounted period the loan reverts to the SVR. It is available up to 85% LTV between £50,000 and £500,000.

Yorkshire has offered fixed rate products with six-month interest-free periods in its Fresh Start range for several years.

David Heshon, product development manager at Yorkshire, says: “There are two arguments against the Saffron product – first, a variable rate in an environment of rising interest rates does not offer the payment security many people are looking for.

“Second, the mortgage is only available up to 85% LTV and some people targeted by this type of product might struggle to come up with the remaining 15%.

“But we welcome Saffron’s product in terms of increasing awareness of the market niche that we have created.”

Sarah Darling, marketing manager at Saffron, says the product was not brought out to compete with Yorkshire’s range.

She adds: “This was a way of introducing some flexibility into our range. If you need a payment holiday after divorce or separation but have a good payment history it allows that freedom at the beginning.”

Roy New, sole broker, says: “If interest rates continue to rise this product could come into its own. In terms of overall value a base rate tracker would be better but this is an exceptional deal if a client needs time to pay off debts or renovate a property.”


Terraced houses see biggest price rises

Terraced houses have seen the greatest increases in their price over the last five and 10 years, research by Halifax Estate Agents reveals.Based on Halifax’s house price data, the results show that over the last 10 years the average UK terraced house price has increased by 239%.Over the last five years the trend is a […]

GI brokers must protect consumers money, warns FSA

The Financial Services Authority has warned general insurance intermediaries that they have no excuse for failing to protect client money in their possession.Between September and December 2006 the FSA conducted its third phase of client money work visiting 161 general insurance intermediaries. Results showed that most intermediaries in the sample who had used the FSA’s […]

Woolwich launches lifetime tracker

Woolwich has launched a tracker guaranteed to stay 0.18% above the Bank of England base rate for life, with no arrangement and no redemption penalties.The launch coincides with a new TV advertising campaign as well as the release of a 10-year fix at 5.28%.Andy Gray, head of mortgages for Woolwich, says: The improvement in the […]


News and expert analysis straight to your inbox

Sign up