Mortgage bulletin for week commencing Monday 17 March
With much speculation this week about whether the Chancellor's budget speech will contain changes to the stamp duty rules, or reduce tax breaks for buy-to-let investors, mortgage providers are keeping their powder dry on new deals for would-be homeowners.
However, there are still some good deals to be had, particularly for those remortgaging or moving to a larger home. The West Bromwich Building Society is offering an initial rate of 1.48% on its two-year fixed-rate mortgage at 60% loan-to-value (LTV). The product is available for loans up to £250,000 and comes with a booking fee of £99 and a hefty £2,400 completion fee. A similar deal, but with no completion fee is available at 2.09% for the two-year fixed-rate period.
For loans completed before 31 August 2014, TSB is offering a two-year fixed rate at 60% LTV on mortgages from £200,000 to £1m, with an initial rate of 1.54%. The deal carries an arrangement fee of £1,995. For mortgages up to £199,999 at 60% LTV, the rate is 2.29% fixed for two-years, with no product fee. TSB may levy a completion fee of £265 on these products.
HSBC has a two-year fixed-rate mortgage product at 1.59% at 60% LTV on loans up to £500,000 with a booking fee of £1,999. Regular overpayments by direct debit of up to 20% will not incur early repayment charges (ERCs), while one-off overpayments may.
Tesco Bank is offering loans at up to 60% LTV at 1.64%, fixed for two years, with a non-refundable booking fee of £195 and arrangement fee of £1,300. ECRs apply during the fixed-rate period.
Santander is offering a two-year fixed rate at 1.89% on 60% LTV mortgages completed through intermediaries before 29 August 2014. The product is available for loans up to £1m, and caries a booking fee of £1,495. ERCs of 3% apply during the fixed-rate period, and the deal is available on loans up to £1m. For larger loans, up to £2.5m at 70% LTV, the initial rate rises to 2.34%, fixed for two years, with a booking fee of £1,995. These products come with free standard valuation and £250 cash-back on completion as a contribution toward legal costs.
Self-build is increasingly popular with those looking to move on from their current home. A range of mortgage providers offer self-build deals at a range of LTVs. Progressive Building Society is offering a 1% Discount Tracker Self Build product for loans up to 60% LTV at an initial variable rate of 3.75% for the first two years, rising to a variable rate, currently 4.75% thereafter. The deal is available for loans from £30,000 to £500,000 and is only available to direct customers.
The Bank of Ireland UK is currently offering a rate at bank base rate +3.75% for an initial period of 12 months on loans up to 75% LTV. The rate reverts to a tracker rate, currently 4.49%, thereafter.
Melton Mowbray Building Society has a three-year variable tracker 0.10% Discount Mortgage offering an initial rate, currently 4.89%, reverting to 4.99% after the three- year fixed period. An application fee of £500 is payable on application, and a completion fee of 0.5% of the loan amount. ECRs of 2% of the outstanding balance is payable if the mortgage is repaid within three years of completion.
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