View more on these topics

First Active to target UK brokers

Royal Bank of Scotland is planning an aggressive attack on the mainstream UK mortgage market with the launch of its First Active brand distributing products solely through intermediaries on June 14.

First Active was founded in 1861 in Ireland as the mutual Workingman&#39s Benefit, changing to First National in 1960 and then converting to a public company in 1988.

It previously entered the UK market in conjunction with Britannic as Britannic Money, but this was bought out by Britannic in 2002.

First Active then merged with Ulster Bank, which was taken over by RBS in January this year.

The company is to launch two new low rate mortgages in England, Scotland and Wales, a two-year discount and a five-year stepped mortgage. Both mortgages will track the Bank of England base rate and it says they will carry competitive proc fees.

The two-year discount offers a rate of 4.04% for two years, 0.21% below Bank base rate. This then moves to Bank base rate plus 0.69%, for the life of the mortgage.

The five-year stepped mortgage starts at 3.14% for the first year, 1.11% below Bank base rate, increasing in steps that track the base rate over the next four years. It then moves to 0.69% above Bank base rate for the life of the mortgage.

Jayne-Anne Gadhia, managing director at First Active, says: “Research shows that intermediaries believe that a discounted initial rate and low long-term rates linked to the Bank of England rate are among the most important interest rate features of a mortgage.

“On top of that, good service is paramount. First Active&#39s first two products offer hugely competitive initial and long term rates backed by a quick and efficient service which will minimise paperwork for intermediaries.”


Welsh hotspot

The Welsh property price boom continues unchecked with the UK&#39s biggest house price increases during the past 12 months – up by a whopping 57% in some areas. Wales has effortlessly outstripped most of the UK, boasting four of the top 10 counties with the biggest gains in property prices. In Gwynedd, prices rose by […]

Rate rise won&#39t have adverse effect on equity release, says KRS

Key Retirement Solutions says the Bank of England base rate rise should not have an adverse effect on the equity release market. Colin Taylor, managing director at KRS, says: “Whilst we have recently seen the Bank of England base rate increase on four separate occasions over the last few months, we have actually seen interest […]

Mortgage Talk recruites new estate agency to its franchise

Mortgage Talk has recruited a brand new estate agency to its network of mortgage services franchisees. The newly established Freckleton Brown practice is based in Eastwood, Nottingham, and has been formed by Paul Freckleton and Gordon Brown who have, between them, twenty five years&#39 experience in estate agency. Formerly with several other prominent estate agents […]

FSA bans former Equitable Life chief executive

The Financial Services Authority has banned Christopher Headdon, the former appointed actuary and then chief executive of Equitable Life, from holding a significant management role until May 2010. The prohibition is a result of Mr Headdon&#39s failure to disclose a side letter to the FSA that raised questions about the true value of a reinsurance […]

Singapore cover image - thumbnail

White paper — Singapore International Insights

Jelf Employee Benefits assesses key trends within the international private medical insurance provision of organisations with employees in Singapore. Benefit structure, cost management and healthcare facilities are examined and key considerations are highlighted. This edition will be of particular interest to global human resource directors and benefit managers with local and expatriate populations in Singapore.


News and expert analysis straight to your inbox

Sign up