Mortgage bulletin for week commencing Monday 25 August
Lower mortgage interest rates mean that the cost of a first-time buyer owning a home in the UK is now £110 (14%) per month lower than renting, or £1,316 per year. According to research by Halifax, the average monthly mortgage costs associated with owning a three bedroom house for a typical first-time buyer in the UK stood at £677 in June 2014; £110 lower than the average monthly rent paid.
For those taking out a new loan with Halifax before 7 October, the lender is offering to refund two months' interest on mortgages for homemovers and first-time buyers, up to a maximum payment of £1,000, as part of its latest offer for mortgage customers.
Meanwhile, Coventry Building Society has launched a new residential range, with Flexx for Term and fixed rate options available at up to 90% loan-to-value (LTV). The range includes a 3.95% Flexx for Term, variable rate, 90% LTV mortgage, with a £199 booking fee, £300 arrangement fee and no Early Repayment Charges (ERCs). A two-year fixed-rate at 90% LTV has a rate of 4.05%, with a £300 arrangement fee or 4.15% with no arrangement fee. Both fixed-rate products have a £199 product fee and ECRs payable during the two-year fixed period. The lender's new five-year fixed-rate product has a rate of 4.65% with £199 booking fee, £800 arrangement fee and ECRS payable during the first five years of the loan. All residential products include a valuation up to £670.
HSBC is offering more than twenty different mortgage products for those wanting a 90% LTV mortgage. Among them are a two-year discount special product with a rate of 2.89% variable with a booking fee of £999, a standard lifetime tracker at 4.39% with a fee of £999 which is reduced for HSBC Premier Customers to £299, or a two-year fixed rate High Street special at 3.79% initially, with a product fee of £1,499. Five-year fixed-rate deals from HSBC at 90% LTV include a Standard five-year at 4.79% with a product fee of £999 or five-year fixed-rate Fee Saver at 5.19% with no fee.
Through its branches, Chelsea Building Society is offering a 90% LTV two-year fixed-rate at 3.44% with a product fee of £1,545 or 3.79% with a reduced fee of £345 and three-year fixed-rate at 90% LTV at 4.04% with a fee of £1,545.
Yorkshire Building Society has a range of two-year fixed rate product for loans up to 90% LTV available in-branch. For first-time buyers, a two year fixed-rate is 4.09% with no product fee, £1,000 cashback and free standard valuation. For those moving home and remortgagers the rate is 3.49% with a product fee of £845, or 3.64% with a reduced product fee of £345. The lender has a £500 cashback two-year fixed-rate product at 90% at an interest rate of 3.79% and a £345 product fee, while for remortgagers the 3.79% two-year fixed-rate comes with free standard valuation and legal services and the same £345 product fee.
First Direct is offering its Limited Edition two-year fixed-rate mortgage for loans up to 90% at an initial rate of 3.89% with a booking fee of £1,000 or 4.29% with no booking fee. The lender's five-year fixed-rates include a 90% LTV deal at 4.59% with a £1,000 booking fee and 4.79% with no booking fee.