Mortgage bulletin for week commencing Monday 19 May

Posted 19 May 2014

While some lenders are raising rates of their higher loan-to-value (LTV) mortgages, initial interest rates for low LTV mortgages continue to offer very good value.

The West Brom Building Society is offering 1.48% on its two-year fixed-rate mortgage on loans up to 60% LTV. The deal is available for home purchases on loans up to £250,000 and carries a booking fee of £99 and hefty completion fee of £2,300. HSBC is offering a rate of 1.49% on its two-year Discount Special fixed rate at 60% LTV on loans up to £500,000. The deal is available to HSBC current account holders and a £999 booking fee applies.

For loans between £200,000 and £1m, the TSB will charge 1.59% for its two-year fixed-rate mortgage at 60% LTV. The product carries a non-returnable £1,995 booking fee.

Variable-rate mortgages, often called Flexx for Term or Lifetime Tracker mortgages, are based on the Bank of England base rate (BBR), which currently remains at 0.5%. HSBC has a range of Lifetime Tracker mortgages including a 60% LTV deal at the BBR + 1.49% and BBR + 3.69% at 90% LTV. Both products have a booking fee of £999. Barclays' current lifetime tracker rate is Barclays Base Rate plus 2.69% on loans up to 70% LTV with an application fee of £999, or Barclays Base Rate plus 3.29% at 80% LTV, again, with an application fee of £999.

Coventry Building Society is offering a Flexx for Term variable product for re-mortgagers at BBR + 1.55% on loans up to 65% LTV with a booking fee of £199 and arrangement fee of £800. The rate rises to BBR + 2.09% on loans up to 75% LTV with similar fees and both products offer a free mortgage valuation up to a maximum of £670. For buy-to-let customers, Coventry is offering a Flexx for Term product at BBR + 3.05% at a maximum 75% LTV. The product carries a product fee of £250, arrangement fee of £749 and a free valuation to £700.

For longer fixed terms, a number of providers are offering fee-free products. Santander is offering 80% mortgages on loans up to 80% LTV for homebuyers and remortgagers at 3.95% with no booking fee, or at 85% LTV with no booking fee at 4.59%.

The Post Office has a five-year fixed-rate product with no arrangement fee. Rates include 3.38% on loans up to 75% LTV, 3.69% at 80% LTV and 4.75% at 90% LTV. Skipton Building Society is offering a five-year fixed rate of 3.84% on loans up to 75% with no application or completion fee, or 4.53% at 85% LTV.

First-time buyers, those moving home and those remortgaging from another lender can get a ten-year fixed-rate mortgage from the Yorkshire Building Society 4.14% on loans up to 75% LTV with no product fees, while Britannia, part of The Co-operative Bank, has a ten-year fixed-rate 75% LTV deal with no arrangement fee available by phone or in branch at 5.99%.

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