Mortgage bulletin for week commencing Monday 21 July

Posted 21 July 2014 by Keith Osborne

Lloyds Banking Group is making a number of changes to its new-build mortgage range to make it even more simple and straightforward for both first-time buyers and home movers. Mortgages on new-build houses and flats are now be available between 90% and 95% loan-to-value (LTV) through both Halifax and Lloyds Bank Help to Buy mortgage guarantee scheme products.

New Build 80-90% LTV lending will be available on new-build flats (previously this was only available for houses) and will also be available through Lloyds Bank, which has not previously lent on new-build properties above 80% LTV. Stephen Noakes, mortgage director at Lloyds Banking Group, says: "We continue to support customers with smaller deposits who are buying new-build properties and as a result the Group is allowing these homes to be bought through our Halifax and Lloyds Bank Help to Buy Mortgage Guarantee Scheme products."

Meanwhile, Halifax is offering two-year fixed-rate mortgages at 60% LTV via intermediaries for those buying new-build properties at 2.59% with a product fee of £999 or 2.99% with no fee.

Similar 60% LTV two-year fixed-rate products for first-time buyers with Nationwide are currently 2.09% with fees of £499 or 2.49% with reduced fees of £99. Two-year tracker products with Nationwide have no early repayment charges (ERCs) and include one at 2.09% (Bank of England Base Rate (BBR) plus 1.59%) with fees of £499 or 2.49% (BBR+1.99%) with reduced fees of £99.

HSBC has a two-year fixed-rate special for first-time buyers at 60% LTV, currently 1.79% with a booking fee of £1,999, or for those looking for longer-terms peace of mind, a five-year fixed-rate at 60% LTV is 3.09%, with a booking fee of £1,499. Both deals are open to existing and new HSBC customers.

Barclays and Woowich are offering two-year fixed rates at 60% LTV at 2.25%, and a five-year fixed rate of 3.39%, again at 60% LTV. Both products have an application fee of £999.

Yorkshire Building Society is offering 65% LTV loans on a two-year fixed-rate at 1.94% with a product fee of £845, or 2.09% with reduced fees of £345. Free valuations, legal service or cashback are available on some deals.

Tesco Bank is offering first-time buyers a low rate of 2.19% on its two-year fixed-rate mortgage, at up to 75% LTV. A three-year fixed fate version in currently 2.59%, while fixing your initial rate for five years will see the rate rise to 3.19%. All three products have a £195 booking fee and a product fee of £1,300.

Virginmoney is offering first-time buyers a two-year "Everyday" tracker mortgage at 1.85% (BBR+1.35%) on loans up to 70% with a product fee of £995, or 2.19% with no product fee. The lender's 60% LTV two-year fixed-rate for first-time buyers is currently 2.29% with a product fee of £995 or 2.69% with no fee. A three-year fixed rate at 60% is 2.69%, again with £995 product fee, or 2.99% with no fee.

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