Mortgage bulletin for week commencing Monday 26 May
Fourteen million people have undertaken major work on their current property, or plan to do so within the next year in order to improve or add value to their home, according to research by Lloyds Bank. As house prices increase, almost 2 million homeowners have opted to improve their current house instead, with 60% making additional living space their priority. 40% say a new kitchen comes first and 30% prefer to have a new bathroom. The cost of the work varies with 13% spending between £25,000 and £50,000.
Marc Page, Lloyds Bank mortgages director at Lloyds Bank, says, "Rising house prices are clearly having an impact. However, this is giving more people an opportunity to undertake home improvements, whether they are trying to maximise the value of their property, or even make it more sellable in future." Many homeowners will remortgage their home to fund the improvements.
Metro Bank has reduced the cost of its five-year fixed-rate residential mortgage range. For remortgages under £1.5 million, the new prices for five-year fixed-rate residential products are 3.09% for loans up to 60% LTV, 3.29 up to 70% LTV, 3.49% up to 80% and 3.99% for loans up to 85%. Metro also offers a range of two-year fixed-rate products, including a rate of 2.69% at 70% LTV, 2.99% at 80% LTV and 3.49% at up to 85% LTV. All remortgage products offer free legal and valuation fees up to a maximum property value of £1.5 million, and have a product fee of £999. All products are available through a new web portal, launched by Metro Bank last week for direct customers and intermediaries.
Lloyds Bank is offering two-year fixed-rate remortgages at 2.24% at up to 60% LTV with a product fee of £995 or 2.64% with no product fee. Loans at up to 75% LTV are available at 2.45% with a product fee of £1,995 or 2.84% at a product fee of £995, while at 80% LTV the rate is 3.29% with a product fee of £995 or 3.69% with no product fee.
Santander is offering a range of remortgage product through intermediaries on mortgages completed before 29 August, 2014, including a two-year fixed-rate at 2.29% with a booking fee of £995. At 70% LTV, the two-year fixed-rate for remortgagers is 2.39% with a booking fee of £995 or 2.69% with no booking fee. The two-year fixed- rate remortgage product for loans up to 80% is 3.24% with no booking fee and at 85% is 3.44% with a product fee of £995 or 3.79% with no product fee.
Clydesdale Bank is offering £500 cashback and on selected remortgage products on loans over £25,000. Its two-year fixed-rate at up to 75% LTV is currently 2.29% or 2.49% at 80% LTV. For 85% LTV the rate is 2.89% and loans up to 90% LTV have a rate of 3.59%. All four products carry an arrangement fee of £499 for existing customers or £999 for new customers. For remortgagers taking out a new mortgage the bank is offering free legal and valuation fees, though a valuation may be payable where an additional amount is added to an existing mortgage. The cash back offer ends on 13 June, 2014.
Other remortgage products available include a three-year fixed-rate from Chelsea Building Society at 2.34% up to 75% LTV, with a product fee of £1,545, while Norwich and Peterborough Building Society (N & P) has a three-year fixed-rate remortgage at 2.34% up to 70% LTV with a reservation fee of £1,295.
Tesco Bank's three-year fixed for remortgage customers is currently 2.39% on loans up to 70% LTV, with a product fee of £1,300 and booking fee of £195.
The same three-year fixed-rate of 2.39% is available from The Co-operative bank on loans up to 60%, with an arrangement fee of £999, which includes a booking fee of £150. Other three-year fixed-rate products from the co-op include 2.59% at 75% LTV, 2.84% at 80% LTV and 3.34% at 85% LTV, all with fees of £999.
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