New "innovative" Legal & General mortgage

Date:Tuesday 20th October 2009
Author: Max Freedman

Legal & General have claimed that lenders need to be creative in order to succeed in the current mortgage market.

Head of mortgage products at the financial services provider Martyn Smith made his remarks following the release of the Legal & General three-year reverse stepped tracker deal.

The product, provided for the organisation by Accord, is available for up to 75 per cent loan-to-value (LTV), with the interest standing at 3.49 per cent above the base rate in the first year, then 2.9 per cent above in the second and 1.49 per cent over it in the final year.

"A reverse stepped tracker is not a mortgage product that you will see every day, but an unusual mortgage market calls for innovative solutions."

The company also launched a new two-year fixed-rate mortgage at 5.99 per cent interest on up to 85 per cent LTV applications.

This week, Legal & General responded to new proposals by the Financial Services Authority by saying that there are plenty of positives in the report which should be welcomed by lenders.