Mortgage bulletin for week commencing Monday 2 December
Posted 2 December 2013 by Keith Osborne
There are some great new deals on buy-to-let mortgages at the moment, good news for those looking to invest in property to get a better return on their money than they might get in a traditional savings account.
Virgin Money is reducing rates on its buy-to-let range and from 3 December will be offering a two-year fixed-term deal through intermediaries only of 2.89% at maximum 60% loan- to-value (LTV) and with a product fee of £2,495 and 3.19% at 70% LTV.
For direct customers, the new buy-to-let mortgages offer £750 cashback with a two-year fixed rate of 3.25% at 60% LTV and £1,995 product fee, or 4.59% with no fees, reductions of 0.3% and 0.5% respectively on the previous best rates. The new three-year fixed-rate from Virgin Money is 4.69% at 60% LTV with no product fee, a reduction of 0.9%.
Other new 60% LTV buy-to-let products include a two-year tracker at 3.55% with a £995 product fee, or 2.89% with a 2.5% product fee. Early repayment charges (ERCs) apply to any overpayments in excess of the 10% annual allowance.
Anthony Mooney, director of financial services at Virgin Money, says: "We are delighted to announce the launch of our new range of buy-to-let products, which underlines the importance we place on this segment of the market."
The Cambridge Building Society has launched a three-year fixed-rate mortgage, available exclusively to members of Legal & General Mortgage Club, Sesame and PMS. The range, which is available on loans up to £250,000, offers 3.1% up to 75% LTV, 3.2% at 80% LTV, 3.5% at 85% LTV and 4.4% up to 90% LTV, and comes with a £99 application fee and no completion fees, as well as free standard valuation and legal fees for remortgage cases. It is also available to the Cambridge Select group of intermediaries and through its direct channels.
Another buy-to-let deal available currently is a two-year fixed rate from the Principality Building Society with a rate of 1.99% at 60% LTV, with £900 product fee and £99 mortgage commitment fee on loans up to £250,000.
RBS is offering buy-to-let customers 60% LTV two-year tracker deals at 2.69% with a product fee of £1,995 or 3.69% with no fees on loans of at least £25,000, while Hingley and Rugby Building Society is offering its Discounted Variable Rate buy-to-let mortgage at an initial rate for two years of 2.74% on loans up to 60% LTV. The deal is available on loans from £50,000 to £300,000, with a product fee of £250 and completion fee of £2,249.
The Coventry Bulding Society's two-year fixed-rate buy-to-let mortgages are currently 2.79% at 65% LTV, with fees totalling £1,999, or 3.29% with fees of £500. Both offer a free mortgage valuation of up to £700.
Meanwhile, the Post Office has a new range of deals for first-time buyers. They include include a 1.88% two-year fixed-rate mortgage at 75% LTV, 2.28% two-year fixed-rate deal at 80% LTV and 4.29% five-year fixed-rate at 90% LTV, all with fees of £1,495.
John Willcock, head of Post Office Mortgages, said: "Finding the best mortgage can be a daunting task, especially if you're a first-time buyer. For those that want some extra help during the buying process, our mortgage specialists in branch are on hand to offer support."
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