Today we want to share with you, our mortgage partner John Charcol's fantastic monthly newsletter "Much Ado"... happy reading!

Whilst Much Ado takes great pleasure in producing its monthly compendium of great cinematography, this month we are going to tone it down somewhat. Not, you understand, because we have fallen out of love with Hollywood; rather that we have something particularly fantastic to shout about. As you know, Much Ado doesn't tend to talk about specific products every month but we are going to break with that tradition. For once, this really is Much Ado About Mortgages.

For many years now, innovation in the mortgage market has been notable only by its absence, but that is starting to change. It is one such piece of innovation that we would like to draw your attention to. John Charcol has launched a new track and fix mortgage that we honestly believe is the answer to the current market. For those sitting on their mortgages' metaphorical hands for some time now, this could just be the reason to jump out of your seat. It is our belief that a fixed rate offers little value for the majority over the next two years; we now think the question is when in 2012 Bank Rate might rise and you can forget about any movement this year. So, the ideal solution is a product that starts with a low tracker rate and switches automatically to a predetermined fixed rate for the next three years. Well, wouldn't you know it...  

So, the vital statistics: • Bank Rate +1.79% for two years = current pay rate of 2.29% • Followed by a fixed rate of 3.99% for 3 years • Max Loan To Value (LTV)75% (although it is available with a higher rate for higher LTV's) • Arrangement fee of £1,995 for loans to £750,000 and £3,990 up to £1.5million • Early Repayment Charge is 5/5/5/4/3% of the total loan during the 5 years • Can repay up to 10% per annum penalty free • And the overall cost for comparison is 5.1% APR  

Whilst those are unquestionably impressive vitals, the fee may have you raising an eyebrow (or two). To add the merest modicum of perspective, it's the equivalent of a two year deal having an £800 fee. The pricing means that this product will offer better value than the best five year fixed rate unless Bank Rate averages more than 1.75% over the next two years. We think there's about as much chance of that as the nation giving the latest, and last, Harry Potter a miss.  

The beauty of this track and fix arrangement when compared to its closest alternative, a droplock mortgage, is that the fixed rate pricing is already set. You know exactly what you'll be paying. In addition, it also negates the possibility of not locking at the right time and missing the boat. As ever, this is not likely to be the answer for everyone; we have said countless times that generic advice will not do in this market. Yet, we genuinely believe that this is the closest thing to the answer for many that we have seen in years. Click on the link below to find out more, or call your consultant. And while we have you...95% anyone?  

One other positive feature of the mortgage market over the last few months has been an increasing appetite to lend from some lenders - what Goodfellas they are (sorry, old habits die hard) and more competition in the higher LTV end of the market. This has now extended to a few innovative deals at 95% from lenders who adopt the sensible policy of employing human underwriters rather than leaving it to that pesky computer that says no. For example, we have launched two 95% deals aimed at different segments of the market. One is available to first time buyers and affordability is calculated on the rent they have paid over the previous 12 months; and the other is a family offset mortgage, allowing potential first timers to use the Bank of mum and dad as a reference (if you like) as opposed to actually spending their hard earned savings. To give full product details now would see this email go on for too long. So, if you are a first timer and you have been waiting for some good news, it may just have arrived. Speak to your consultant who can fill you in on the finer details.  

Much Ado will be back...

And do remember, John Charcol is more than mortgages. Talk to them about any of the following: Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance |General Insurance Valuations | Conveyancing | Wills | Home finders - click here for more info http://www.ukauctionlist.com/mortgages/john-charcol