Mortgage bulletin for week commencing Monday 3 February

Posted 3 February 2014

Despite lenders reporting year-on-year increases in business, and the buy-to-let market buoyant, the cost of mortgage continues to fall, with reductions in fixed-rate and tracker mortgages announced this week.

Skipton Building Society has reduced interest rates for direct, in-branch and intermediary customers on its two-year and three-year fixed-rate residential mortgages. The two-year fixed rate at up to 85% loan-to-value (LTV) has been reduce from 2.99% to 2.59% with a £195 application fee and a £1,800 completion fee, 2.89% with a £195 application fee and a £300 completion fee or 3.29% with no application or completion fee.

The three-year fixed-rate 85% LTV residential deals are now 3.46% with a £195 application fee and a £300 completion fee or 3.65% with no application or completion fee. Early repayment charges (ERCs) apply and overpayments of up to 10% per annum are allowed without charge.

The Cambridge Building Society has reduced rates on two products for remortgage customers through direct and intermediary channels. Two-year fixed-rate Remo Special mortgages are available at 2.59% for 80% LTV loans up to £500,000, 3.04% for 85% LTV loans up to £400,000 and 3.89% on 90% LTV loans up to £300,000. These deals have a £99 application fee and £900 completion fee with free basic legal and valuation fees.

The Cambridge has also reduced rates on its five-year fixed-rate buy-to-let product, taking it to 4.49% at 75% LTV. The Society's two-year fixed-rate buy-to-let product at 3.64% on loans up to 75% LTV is now available to all intermediaries and the maximum loan size for this product has increased from £250,000 to £500,000.

Lloyds Bank is offering £500 on a pre-paid MasterCard for residential remortgagers applying before 27 March 2014 using the Lloyds Bank Switcher Service. The Lloyds Bank Switcher Service offers free valuation and basic legal costs but excludes shared equity, shared ownership, buy-to-let and further advance loans. The two-year fixed rate at 60% LTV is 1.99% with a £995 product fee or 2.39% with no fees, while the five-year fixed rate at 60% LTV is 2.99% with a £995 product fee or 3.19% with no fees.

Metro Bank has extended it range with new 85% LTV residential mortgage products for properties valued up to £750,000. Metro's two-year tracker is 3.39%, while the two-year fixed-rate is 3.49% or 4.09% fixed for five years. The products are available to customers direct and through brokers. All Metro Bank residential mortgage products offer free legal and valuation fees up to a maximum property value of £1.5m for re-mortgages.

Halifax Intermediaries has launched two new two-year fixed-rate mortgages in its premier mortgages range, which offers loans from £300,000 for first-time buyers, home movers and remortgage customers. The new products, supported by a dedicated Premier Mortgage Team, are available with a £1,499 fee. Products include two- year fixed-rate up to 70% LTV for homemovers, first-time buyers and remortgage customers at 2.09%, and 2.79% for loans up to 80% LTV.

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