Briefly: BNP offers inherited homes deal

Friday 16 October 1992 23:02 BST
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BNP MORTGAGES, the UK arm of Banque Nationale de Paris, is offering mortgages against inherited properties that owners cannot sell.

The bank believes that with 150,000 properties being inherited each year - twice as many as the number repossessed last year - they could be an even bigger drag on the market than repossessed homes. It believes the answer is for more people to rent their empty inherited homes, but points out that some lenders charge higher rates of interest to people who raise loans on properties they rent out.

BNP is offering a range of mortgages under its new scheme. One has a variable rate of 10.85 per cent, with a 1 per cent discount for the first six months to bring it in line with building society rates. There is also a fixed rate of 9.6 per cent for two or three years or 9.3 per cent for the same periods, including a mortgage payment protection policy. The arrangement fee is pounds 250.

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