Mortgage bulletin for week commencing Monday 18 August

Mortgage arrears and repossessions continued to fall in the second quarter of 2014. According to the Council of Mortgage Lenders the number of mortgages in arrears stood at just 1.18% at the end of June, down from 1.24% three months earlier and 1.38% a year ago.

Paul Smee, director general of the Council of Mortgage Lenders, says, "Any borrower anticipating payment problems should talk to their lender as soon as possible. Today's figures continue to show that in many cases it is possible to work through a period of difficulty, with lenders committed to helping borrowers get their finances back on track."

Borrowers seeking protection against future interest-rate rises are being offered more choice with two new five-year fixed-rate deals from Leeds Building Society. A rate of 3.64% is now available on loans up to 80% loan-to-value (LTV) with a free standard valuation up to £335, free in-house legal services for remortgages and a £399 fee, while a five-year fixed-rate loan up to 75% LTV is now on the market at 3.54% with a £599 fee. Both deals offer the ability to overpay up to 10% of the outstanding balance each year without penalty.

Martin Richardson, Leeds Building Society's general manager of business development, says, "Borrowers fixing their mortgage for five years have the security of knowing their monthly repayments for that period and are protecting themselves against future interest rate rises"

Prospective buyers with a 25% deposit have a range of 75% LTV products to choose from.

For homebuyers who start paying back their loan by 28 February 2015, TSB is offering a two-year variable tracker at Bank of England Base Rate (BBR) plus 1.09% (1.59%) , reverting to BBR+3.49% (currently 3.99%) thereafter, with product fees of £1,995, or a no-fee deal at 1.94% above BBR (2.44%).

Meanwhile, Penrith Building Society is offering remortgage customers a discount of 2.2% off its standard variable rate, which currently stands at 4.15%,for two years on loans up to £980,000 at 75% LTV, with fees of £250.

Nationwide is offering a five-year fixed rate deal at 3.64% at 75% LTV with a product fee of £900 or 3.84% with no product fee. Both mortgages carry a non-refundable booking fee of £99.

Barclays has a five-year fixed-rate mortgage currently at 3.59% on loans up to 75% LTV with an application fee of £999, and for those looking for even more long-term peace of mind, a ten-year fixed rate for loans up to 70% LTV at 3.99%, with an application fee of £1,499.

NatWest is offering home purchasers looking to borrow up to 80% of the value of their new home a five-year fixed-rate mortgage at 3.85% with a product fee of £995 and tapered Early Repayment Charges (ECRs) during the discounted period, while Skipton Building Society is offering a five-year fixed-rate of 4.69% on loans up to 75% LTV with an application fee of £245 and a completion fee of £750. The maximum loan permitted through the Skipton deal is £500,000 and it is available for purchases or remortgages.

Santander has a five-year fixed rate mortgage for purchases and remortgages on loans up to 75% via intermediaries at 2.69% with a fee of £995 on loans up to £1 million or 3.09% with no fee for those borrowing £550,000 or less.