Mortgage bulletin for week commencing 17 November 

Posted 17 November 2014

Recent figures show that 41% of over-55s plan to sell their current home, with three-quarters planning to downsize, freeing up an estimated £87,600 per household.

The figures, from the Prudential Downsizing Index, also show that 35% of those selling their homes will relocate to a different town or city within the UK, with Cornwall, Arun and North Somerset are the most popular retirement relocation destinations for those aged 65 and over.

Leeds Building Society has unveiled a range of five-year fixed-rate mortgages at 65%, 75% and 80% loan-to-value (LTV) to complement its existing mortgage range. The new deals, which all carry a fee of £1,999, offer rates of 2.59% up to 65% LTV, 2.84% up to 75% LTV, 2.94% up to 80% LTV. All these offers come with a free standard valuation up to £335, no higher lending charge and allow 10% capital repayments each year without penalty.

Nationwide Building Society has a range of three-year tracker mortgages with no product fee and no early repayment charges (ERCs). For loans up to 70% the rate is 1.89%, while at 75% it is 1.99% and at 80%, 2.19%  The deals are available on loans up to £1m, and revert to the lender's current variable rate of 3.99% after the three-year fixed term.

HSBC is offering a rate of 1.49% on its two-year fixed-rate mortgage deal on loans up to £500,000 at 60% LTV. The product carries a booking fee of £1,999 and reverts to the lender's variable rate after two years, currently 3.94%.

Meanwhile, customers looking for a two-year tracker mortgage might consider TSB. The lender has a range of products available for mortgages up to £1m and the current revert rate after the fixed term is 3.99%. For loans up to 60% the two-year rate is 1.39% (0.89% over base rate) with an arrangement fee of £1,995 and completion fee of £265, or 2.09% (1.59% over base rate) with no fees. For those with smaller deposits, the two-year tracker range includes a rate of 2.54% (2.04% over base) on loans up to 85% LTV with fees of £995, or 3.04% (2.54% over base rate) with no fees. All four products offer £500 cashback to customers with a TSB current account and who pay more that £500 per month into that account.

Mortgage Trust has updated rates across its fixed-rate and tracker-rate buy-to-let products. Highlights of its latest range include limited quota options. There are two fixed-rate limited quota products; a 3.99% with a 1.5% product fee, and a 4.5% with no product fee, both available on loans up to 80% LTV.

The limited quota range also includes a two-year tracker at 4.20% available at 75% LTV with a £499 fee but no ERCs, as well as an 80% LTV two-year tracker at 3.65%. All products in the Mortgage Trust range have a free valuation and an application fee of £150 will apply.

John Heron, managing director of mortgages, says, “The buy-to-let market has seen some solid growth this year, which continues to be underpinned by strong tenant demand. We have updated our range to make sure that Paragon and Mortgage Trust products remain well positioned in the market in the run-up to the year-end, which traditionally has always been a competitive time in the market.”

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