Mortgage bulletin for week commencing 15 September 

Posted 16 September 2014 by Keith Osborne

A number of banks and building societies are offering lower rates to borrowers against a backdrop of a slightly slowed housing market. House prices across the UK showed quarterly growth of 3% during June to August over the previous three months, and a 9.7% rise on the same period last year. This was slightly lower than the previous three months of 3.5% and 10.2% respectively.

Nationwide is cutting rates, with two-year fixed-rate mortgages now available from 1.94% at 60% loan-to-value (LTV) or 3.89% at 90% LTV. A five-year fixed rate up to 60% LTV is 2.99%. Existing Nationwide customers get a 0.1% reduction on these rates and the deals carry a £900 fee and £99 non-returnable booking fee. First-time buyers pay a reduced fee of £400 and remortgage customers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback. 

Newcastle Building Society has launched two new low-fee fixed-rate mortgages aimed at first-time buyers. A two-year fixed-rate deal at 3.99% up to 90% LTV on loans up to £500,000 comes with free standard valuation, free legal fees for remortgage customers in England and Wales (a £300 cashback is payable on properties in Northern Ireland and Scotland on completion). Additionally, the Society has launched a five-year fixed-rate product at 4.69% at 90% LTV with the same benefits. 

Coventry Building Society has launched a new range of residential mortgages with two-year and five-year fixed-rate options. These include a two-year rate of 2.29% on loans up to 65% LTV, a two-year rate of 2.59% at 75% LTV and a five-year rate up to 65% LTV at 3.45%. All three products have a £199 booking fee. 

Skipton Building Society has launched a selection of residential two-year discount products with a choice of fee and rate blends to maximise choice and flexibility. The deals revert to Skipton mortgage variable rate, currently 4.99%, after the discounted period. The two-year discount at 60% LTV is currently 1.59% with application and completion fees of £995 or 1.99% with no fee. At 75% LTV, the rates are 1.89% with fees of £495 or 2.24% with no fees. For those with smaller deposits, the rate rises to 2.49% at 85% LTV with fees of £495 or 2.74% with no fees, or the 90% LTV option is 3.49% with fees of £995. 

In addition, Skipton has also lowered rates by up to 0.4% for two-year fixed-rate residential mortgages available through the Skipton Direct customer service centre and all intermediaries. At 60% LTV, the rate is 1.92% with application and completion fees of £995 or 2.49% with no fee. At 75% LTV rates are 2.34% with fees of £495 or 2.76% with no fees and at 85% LTV the rates are 2.99% with fees of £495 and 3.23% with no fees. At 90% LTV rates are 3.89% with fees of £995 or 4.19% with no fee.

Specialist lender Kensington is helping brokers benefit from the growing self-employed population with a range of products. Rates for self-employed borrowers include a 75% LTV product fixed for either two years at 3.44% or three years at 3.64%. Both products revert to LIBOR plus 4.1% after the fixed period, have free valuations and a completion fee of £999. Free legals and valuations are offered on re-mortgages up to £500,000. The same benefits are available to those with smaller deposits. At 80% LTV the two-year fixed-rate is 3.99% for two years or 4.19% fixed for three years, while the 85% LTV two-year fixed-rate is 4.74% reverting to LIBOR plus 4.3%.

Click here to find out more about how can help you find the right mortgage.

22 December 2014
It seems the Boxing Day Sales have started early with yet more reductions in mortgage rates.Skipton Building Society has reduced rates by up to 0...Read more
Mortgages & Homes
24 November 2014
Leeds Building Society has unveiled new Interest Only Fee Assisted two-year fixed-rate and five-year fixed-rate mortgages available up to 50% loa...Read more
Mortgages & Homes
Larger mortgage with a green home
31 July 2017
A new report says a property’s energy efficiency should be taken into account when calculating how much can be borrowedRead more
Mortgages & Homes

Click here to see your activities