Mortgage bulletin for week commencing Monday 6th October
This week sees more building societies and banks reducing mortgage rates to attract first-time buyers, buy-to-let investors, those moving home and remortgaging customers.
Santander is supporting its existing mortgage holders with a range of exclusive new products. Customers can take advantage of some new rates, with fixed and tracker products starting from as low as 2.04%. They include a two-year tracker mortgage at 2.04%, up to 75% loan-to-value (LTV), a two-year fixed rate deal at 2.49%, up to 80% LTV, and a five-year fixed-rate mortgage at 3.44%, up to 75% LTV.
In addition, Santander is reducing its five-year fixed-rate "Existing Mover Exclusive" product from 3.79% to 3.59% (up to 80% LTV). All Existing Mover Exclusive products come with a booking fee of £995, plus Santander’s unique Homebuyer Solution offering a free valuation and £250 cashback for those buying a new home. Santander 1|2|3 Current Account customers who pay their monthly mortgage payment by direct debit will also receive 1% cashback on maximum monthly mortgage payments of £1,000.
Miguel Sard, head of mortgages at Santander, says, “These new rates, together with our offer of 1% cashback to our 1|2|3 Current Account holders, clearly demonstrate our commitment to supporting our customers, both new and existing, as they make their way up the housing ladder.”
Skipton Intermediaries has launched its sale of 250 first-time buyer two-year and five-year fixed-rate products - both at 90% LTV, both fee free, and both with £250 cashback. The deals will be available on a first come first served basis until 8 October or until Skipton reaches its 250 first-time buyer target. These exclusive products include a two-year fixed-rate mortgage at up to 90% LTV at 3.89% or a five-year fixed-rate at 4.53%. Skipton will enable this offer on joint applications where only one applicant is a first time buyer.
In addition, Skipton is reducing rates on a number of products available through the society's Skipton Direct customer service centre, branches and all intermediaries. The new range includes a three-year residential fixed-rate mortgage at 2.77% to 60% LTV with no application or completion fee, three-year fixed-rate at 2.78% to 75% LTV with a £195 application fee and an £800 completion fee at 3.07% with no fees. At 90% LTV, three-year fixed-rates include 4.36% to 90% LTV with a £195 application fee and an £1800 completion fee 0r 4.75% with no fees.
There is also a range of five-year residential fixed-rate mortgages from 3.1% up to 60% LTV with a £195 application fee and an £800 completion fee, or 3.22% with no fee. At 75% LTV the rate rises to 3.29% with a £195 application fee and an £800 completion fee (or 3.48% with no fees). For those with smaller deposits, a 90% LTV five-year fixed-rate loan is available at 4.85% with a £195 application fee and an £800 completion fee or 4.98% with no application or completion fee. All of the above products, which are available for purchases and remortgages, benefit from overpayments of up to 10% per annum allowed without penalty.
The Post Office has launched a new range of mortgage deals. John Willcock, head of mortgages and transaction services, says, "At Post Office we are always looking for opportunities to review our product range so that we can offer our customers the best mortgage possible. We recognise what an important and occasionally daunting process finding a new mortgage can be, and so offer several means of support so that people can buy in the way that suits them best". Post Office rates include a residential mortgage at 2.98% fixed for three years at 60% LTV with no fees, and a five-year fixed-rate mortgage at 3.59%.
Other mortgage deals this week include a three-year tracker mortgage from Virgin Money at 1.99% at 60% LTV and a two-year tracker from Nat West at 2.09%.
Accord is offering a five-year fixed-rate product for those who have been self-employed for at least three years. The deal is 3.94% up to 65% LTV through intermediaries only, with £300 cashback, free valuation, £195 arrangement fee and £130 booking fee.
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