Mortgage bulletin for week commencing Monday 25 November
Yorkshire Building Society has launched a host of new 95% loan-to-value (LTV) mortgages to help people with small deposits, with rates starting from 4.59%. Many products in the range allow 10% or partial overpayments, though early repayment charges (ERCs) of 1% or 2% are payable during the fixed period.
The 36 two- and five-year fixed-rate products are available through Yorkshire, Barnsley, Chelsea and Norwich & Peterborough (N&P) Building Societies and the Group's intermediary-only lending arm Accord Mortgages. The Group also offers an offset function at 95% LTV. The deals are available for all homebuyers and movers, with access for remortgage customers due to be rolled out in early 2014.
Yorkshire's two-year fixed-rate is 4.89% on loans to 95% LTV from £50,000 to £500,000 with no fees and £500 cashback, and a similar five-year fixed-rate product is offered at 5.29%.
Chris Pilling, Yorkshire Building Society Group's chief executive, says: "We are delighted to be launching the largest selection of 95% LTV mortgages available from any lender in the UK, and delivering good value for our members at the same time."
The Cambridge Building Society has reduced interest rates on three of its residential mortgage products and launched a new three-year fixed-rate product for intermediaries. The new three-year fixed-rate mortgages include free standard legal fees and valuations for remortgagers and reduced fees of £199. Rates range from 3.29% at 75% LTV, 3.39% at 80% LTV, 3.89% at 85% LTV and 4.59% at 90% LTV. Interest rates have also been reduced by up to 0.30% across two-year fixed-rate and five-year fixed-rate mortgages. Two-year Discount products start at 2.49% at 75% LTV, 2.69% at 80% LTV, 3.14% at 85% LTV and 3.99% at 90% LTV. All two-year Discount mortgages have an application fee of £199 and completion fee of £500.
Andy Lucas, commercial director at The Cambridge says: "We continually look at our product range to see what improvements can be made. After launching a range of new products into the intermediary market in October, we're confident these additional changes backed up by our award-winning service, provide extra support to Intermediaries in meeting their customers' needs."
Clydesdale and Yorkshire Banks have just lowered the rates on their First Time Buyer mortgages. Those looking to buy their first home can now benefit from a 95% LTV mortgage with a rate of 4.99%. A new LTV tier at 90% has also been introduced at 3.99%. First-time buyers taking the new three-year fixed-rate deals will also benefit from the banks' current offer of no arrangement fee, saving £999, free standard valuation and £250 cashback on completion.
Andrew Pearce, retail director for Clydesdale and Yorkshire Banks, says: "Clydesdale and Yorkshire Banks have continuously supported First Time Buyers and have now offered 95% mortgages for more than 10 years and we hope our new lower rates will also help more customers to buy their first home."
Click here to find out more about how Whathouse.co.uk can help you find the right mortgage.