Mortgage bulletin for week commencing Monday 23 June
Five-year mortgages are becoming an increasingly popular choice for homebuyers, according to mortgage lender Halifax.
Fixed-rate mortgages for terms from four to nine years account for a third of all of the lender's mortgage sales, up from 22% in 2008 to 34%. Five-year fixed-rate deals are the most popular product in the range. For remortgage customers, two-year and four to nine years fixed rate products are also the most popular - accounting for 58% and 35% respectively.
Halifax Intermediaries is launching a new range of five-year fixed-rate mortgage products. Available to homebuyers and remortgage customers the new products will be available from 60% loan-to-value (LTV) to 85% LTV with rates starting from 3.98% for homemovers/first time buyers at 60-75% LTV with a £999 fee, 4.08% for remortgage at 60-75% LTV with a £999 fee, 4.84% for homemovers/first time buyers at 75-85% LTV with a £999 fee and 4.94% for remortgage at 75-85% LTV with a £999 fee. Some remortgage deals offer free legal fees and assessments, while Halifax account holders may qualify for £150 cashback on selected products.
Ian Wilson, Head of Halifax Intermediaries says,"We have taken the opportunity to enhance our product range with a suite of new competitive five year mortgage products for brokers to offer their clients. In terms of the overall mortgage market, two year fixed deals have the highest take up. However, buyers are increasingly locking into in longer term deals with 4 to 9 years deals gaining in popularity since 2008."
Other five-year fixed-rate deals on the market include HSBC's fixed special at 2.94% on loans up to 60% LTV with a booking fee of £1,499. HSBC is offering a five-year fixed-rate of 3.19% at 70% LTV with a booking fee of £999 or 3.49% with no booking fee and 3.49% at 80% with a fee of £999 or 3.79% with no fee.
Nationwide is offering first-time buyers a £500 discount on the product fee on selected mortgages. Their five-year fixed-rate mortgage rate is 3.19% at 60% LTV with fees of £499 or 3.39% with a reduced fee of £99. Rates rise to 3.29% at 70% LTV, again with fees of £499 or 3.49% and fees of £99. At 80% LTV, borrowers will pay 3.89% with a fee of £499 or 4.09% with a fee of £99.
Tesco Bank is offering Clubcard points on all of its mortgages, including a five-year fixed rate of 2.99% on loans up to 70% LTV, with booking fee of £195 and product fee of £1,300.
Santander for Intermediaries has a buy-to-let five-year fixed-rate mortgage at 3.99% for loans up to 60% LTV, 4.14% at 70% LTV and 4.34% at 75% LTV. All products have a booking fee of £1,495 and are available for buy-to-let mortgages from £25,000 to £750,000. Customers will receive a free standard valuation for mortgage purposes (up to a property value of £2.5 million), plus £250 cashback at completion, as a contribution towards legal costs. The completion deadline for these products is
28 November, 2014.