Mortgage bulletin for week commencing 15 September

Posted 16 September 2014 by Keith Osborne

A number of banks and building societies are offering lower rates to borrowers against a backdrop of a slightly slowed housing market. House prices across the UK showed quarterly growth of 3% during June to August over the previous three months, and a 9.7% rise on the same period last year. This was slightly lower than the previous three months of 3.5% and 10.2% respectively.

Nationwide is cutting rates, with two-year fixed-rate mortgages now available from 1.94% at 60% loan-to-value (LTV) or 3.89% at 90% LTV. A five-year fixed rate up to 60% LTV is 2.99%. Existing Nationwide customers get a 0.1% reduction on these rates and the deals carry a £900 fee and £99 non-returnable booking fee. First-time buyers pay a reduced fee of £400 and remortgage customers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback. 

Newcastle Building Society has launched two new low-fee fixed-rate mortgages aimed at first-time buyers. A two-year fixed-rate deal at 3.99% up to 90% LTV on loans up to £500,000 comes with free standard valuation, free legal fees for remortgage customers in England and Wales (a £300 cashback is payable on properties in Northern Ireland and Scotland on completion). Additionally, the Society has launched a five-year fixed-rate product at 4.69% at 90% LTV with the same benefits. 

Coventry Building Society has launched a new range of residential mortgages with two-year and five-year fixed-rate options. These include a two-year rate of 2.29% on loans up to 65% LTV, a two-year rate of 2.59% at 75% LTV and a five-year rate up to 65% LTV at 3.45%. All three products have a £199 booking fee. 

Skipton Building Society has launched a selection of residential two-year discount products with a choice of fee and rate blends to maximise choice and flexibility. The deals revert to Skipton mortgage variable rate, currently 4.99%, after the discounted period. The two-year discount at 60% LTV is currently 1.59% with application and completion fees of £995 or 1.99% with no fee. At 75% LTV, the rates are 1.89% with fees of £495 or 2.24% with no fees. For those with smaller deposits, the rate rises to 2.49% at 85% LTV with fees of £495 or 2.74% with no fees, or the 90% LTV option is 3.49% with fees of £995. 

In addition, Skipton has also lowered rates by up to 0.4% for two-year fixed-rate residential mortgages available through the Skipton Direct customer service centre and all intermediaries. At 60% LTV, the rate is 1.92% with application and completion fees of £995 or 2.49% with no fee. At 75% LTV rates are 2.34% with fees of £495 or 2.76% with no fees and at 85% LTV the rates are 2.99% with fees of £495 and 3.23% with no fees. At 90% LTV rates are 3.89% with fees of £995 or 4.19% with no fee.

Specialist lender Kensington is helping brokers benefit from the growing self-employed population with a range of products. Rates for self-employed borrowers include a 75% LTV product fixed for either two years at 3.44% or three years at 3.64%. Both products revert to LIBOR plus 4.1% after the fixed period, have free valuations and a completion fee of £999. Free legals and valuations are offered on re-mortgages up to £500,000. The same benefits are available to those with smaller deposits. At 80% LTV the two-year fixed-rate is 3.99% for two years or 4.19% fixed for three years, while the 85% LTV two-year fixed-rate is 4.74% reverting to LIBOR plus 4.3%.

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