Mortgage bulletin for week commencing Monday 9 December
Remortgaging, to invest either in buy-to-let, or renovating or enlarging an existing property, attracts some of the cheapest mortgage rates around. With a loan-to-value (LTV) of up to 60%, lenders are offering a number of products from fixed-rate to tracker and variable-rate mortgages.
Skipton Building Society has launched a new range of mortgages, with rates reduced by up to 0.20%. Its two-year fixed-rate deal at up to 60% LTV is 1.74% with £195 application fee and £1,800 completion fee, or 2.39% with no fees. Skipton's three-year fixed rate up to 60% LTV with no fees has fallen from 2.78% to 2.68%. These products are available through the Society's Skipton Direct customer service centre, branches and all intermediaries.
HSBC is offering a rate of 1.49% on its 60% LTV two-year fixed-rate mortgage with a £1,999 booking fee and early repayment charges (ERCs) on new loans up to £500,000. The bank's Lifetime Tracker product, offers a rate calculated as 1.49% over the Bank of England base rate, for the life of the mortgage. Currently 1.99%, the rate will change as the bank rate changes. Again, a £1,999 fee applies, and loans are available up to £500,000, with ERCs and overpayment of up to 20% free of charge.
For those with a 40% deposit, the Post Office is offering a two-year fixed rate, with free standard valuation and standard legal fees for remortgagers, of 1.63% with an arrangement fee of £1,995, 2.19% with a lower fee of £995 or 2.49% with no fee. Its three-year fixed rate at 60% LTV is 2.45% with a fee of £995 or 2.69% with no fees. All of these products revert to the Post Office's variable rate at the end of the fixed period, which is currently 4.49%.
For intermediaries, NatWest is offering loans for residential remortgagers at 60% LTV with free standard legal and valuation fees at 2.55%, and two-year tracker at 2.29%. Both products have a £1,499 fee. NatWest direct customers can take advantage of the bank's Variable Offset for remortgagers at the current rate of 4% with a £499 product fee. Offset mortgages reduce the amount a borrower owes by the amount that they have in savings or their current account. Interest is paid only on the difference between the two figures and can reduce the repayment period.
RBS is offering existing customers a range of remortgages with £100 cash back. The two-year fixed-rate 60% LTV deal is 2.49% with no product fee or 1.89% with a fee of £995. Similar five-year fixed-rate deals are 2.99% with a £995 product fee or 3.29% with no fees. The minimum loan size is £25,000 and ECRs of 2% until 31 March 2015 then 1% until 31 March 2016 are payable.
Customers who open or hold a TSB current account can benefit from £500 cashback upon completion of their remortgage to TSB. Cashback is offered to all existing TSB current account holders or customers choosing to open a current account alongside their new TSB mortgage, as long as at least £1,000 per month is credited to their TSB current account.
TSB is offering 60% LTV remortgage products in branch, over the phone and online with interest rates of 2.09% fixed until 29 February 2016, with £995 fees or 2.49% with no fees. TSB will pay for the valuation and standard legal fees on loans up to £999,999. A £500 cashback offer paid directly to the lender's conveyancer on completion is available to those with a TSB current account paying £1,000 or more per month into it.
Ian Ramsden, mortgages director, TSB says: "Customers could potentially save thousands by switching their mortgage. Those looking to remortgage can now make significant savings with our range of fee-free products."
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