Mortgage bulletin for week commencing Monday 10 February
The average age of a first-time buyer is currently 29 years, just one year older than it was 30 years ago, according to a study by HSBC. Saving up to buy a property took them on average two years and eight months, two months less than they expected, with two thirds (64%) getting help from their parents - via the Bank of Mum and Dad.
Pete Dockar, head of mortgages at HSBC, says: "Homeownership continues to be an aspiration for the majority of young people. Deposits remain an essential ingredient to getting a mortgage, but in comparison to previous generations affordability is still healthy, so first-time buyers can feel confident about making their first step."
Two providers are offering fixed rates at less than 1.5%. West Bromwich Building Society has a two-year fixed-rate product at 60% loan-to-value (LTV) of 1.48% on loans up to £250,000. The products fee is £99, and the completion fee is £2,400. A similar mortgage with no completion fee is 2.09%, and offers assisted legal and valuation fees up to a value of £525. Meanwhile, HSBC is offering a rate of 1.49% on its two-year fixed-rate mortgage at 60% LTV on loans up to £500,000. A booking fee of £1,999 applies, and homebuyers can overpay by up to 20% of their standard monthly payment without charge.
Homeowners looking to remortgage and reduce their monthly repayments are being offered a new low-fee mortgage from Leeds Building Society at a competitive rate of 2.09% fixed for two years. With a fee of £199, the deal is available on home loans up to 65% LTV and includes a free standard valuation up to £335, with remortgagers also benefiting from free in-house legal services.
With the buy-to-let market remaining strong, mortgage providers are offering a wide range of deals between 60% LTV and 75% LTV. The HSBC has a buy-to-let two-year fixed-rate mortgage at 65% LTV on loans up to £500,000 with a rate of 3.79% and £99 booking fee, or 2.99% with a booking fee of £1,999. After the fixed term, both mortgages revert to the HSBC buy-to-let variable rate, currently 5%.
Coventry Building Society buy-to-let mortgages include a 65% LTV at 3.19%, fixed for two-years with a £250 booking fee and £999 arrangement fee. The deal includes one mortgage valuation worth a maximum of £700, and the rate reverts to Coventry's standard variable rate, currently 4.74%, after the fixed term.
Skipton Building Society's has a two-year fixed-rate buy-to-let mortgage deal of 3.58% at up to up to 75% LTV. The rate reverts to Skipton's 5.69% buy-to-let mortgage variable rate after the fixed term and has fees of £995.
The Halifax two-year fixed-rate buy-to-let is 3.69% up to 60% LTV and 4.39% up to 75% LTV. Both mortgages have a product fee of £995 and revert to the Halifax Tracker Rate of 4.84%, or 4.34% above the Bank of England base rate after the fixed period
A 75% LTV buy-to-let two-year fixed-rate loan from the Nottingham Building Society is currently 3.29%, with total arrangement and booking fees of £1,999, or 3.44% with fees of £1,499. Both deals have free legal fees for remortgage customers, a free basic property valuation and both will revert to Nottingham's buy-to-let variable rate, currently 6.54%, at the end of the fixed term.
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