Mortgage bulletin for week commencing Monday 2 June

Posted 3 June 2014

Confidence is blossoming, according to buy-to-let lender Paragon Mortgages. Their quarterly tracking survey of mortgage advisors shows confidence levels at their highest for six years. Intermediaries also reported that during the first quarter of this year, 21% of their mortgage cases were buy-to-let and 19% were first-time buyers. John Heron, director of mortgages, says, "We are now seeing a significant improvement in confidence as the market recovers."

Paragon is currently offering buy-to-let mortgages via intermediaries at up to 75% loan-to-value (LTV) at 5.49% fixed for five years with a product fee of 2%, or a two-year fixed rate at 4.45% with a 3% product fee. Both options are available on loans from £30,000 up to £500,000 on properties valued at a minimum of £75,000.

Best4let is offering loans up to 75% LTV of £200,000 or more at a two-year fixed-rate of 2.64%. The product has a lender completion fee of 2.5% and a free valuation and is available for purchase and re-mortgage.

Aldermore is offering 75% LTV buy-to-let deals from 4.18% on a two-year fixed-rate with 2.5% completion fee or 4.68% with a flat fee of £1,999. Their five-year fixed-rate mortgage at 75% LTV is 5.08% with a fee of £1,999. Variable valuation fees are payable, depending on the size of the mortgage, ranging from £355 on a loan up to £100,000, to £920 on a £1 million loan.

Halifax has a two-year fixed-rate product for buy-to-let purchase and re-mortgage customers at 4.39% on loans up to 75% LTV or 3.69% up to 60% LTV. Both have a product fee of £995 attached to them and are available on loans up to £1 million.

Accord Mortgages has a three-year fixed-rate at 75% LTV at a rate of 3.79% with a completion fee of £1,800, £300 cashback and free standard valuation, or 4.29% and a completion fee of £195 - again with £300 cashback and free valuation. The company is offering £1,000 cashback on its five-year fixed-rate on loans up to 75% LTV, at a rate of 4.44%

NatWest buy-to-let mortgages at 75% LTV include a two-year fixed rate at 3.15% with a product fee of £1,995 or 4.25% with no product fee, and a five-year fixed rate deal at 4.29% with a product fee of £1,995. All three mortgages are available on loans of at least £25,000, to new and existing NatWest mortgage customers.

Meanwhile, The Post Office with its partner the Bank of Ireland, has launched two new buy-to-let mortgage products today (Monday 2 June). A two-year fixed rate at 60% LTV has an interest rate of 3.15%, rising to 3.35% for loans up to 75% LTV. Both products have an arrangement fee of £1,995. The new range is available initially through the Legal and General Mortgage Club Appointed Representatives.

Away from the buy-to-let market, the Post Office's new range includes a rate of 1.98% for a two-year fixed-rate and 3.15% for a five-year fix-rate, both carrying a £995 fee and available to 75% LTV. For those looking to remortgage, the Post Office is now offering a two-year fixed-rate at 2.58% or a five-year fixed-rate at 3.38%, both of which come without product arrangement or value fee and free legals.

For first-time buyers, the Post Office offers a 3.79% two-year fixed-rate up to 90% LTV with a fee of £495 or longer fixed terms at 4.55% for a three-year fixed-rate and 4.95% for a five-year fixed-rate, both without product or valuation fees. John Willcock, head of mortgages at Post Office, says, "Buying a house is a big decision, and we recognise the importance of offering customers a choice in how they do this. These competitive mortgages can be accessed through a number of channels, be it online, in branch or through a broker. We are continuing our journey of becoming one of the top ten providers of mortgages in the market by offering a great range of deals for potential homebuyers, whatever their situation."

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