Mortgage bulletin for week commencing 19 January 

Posted 20 January 2015

Leeds Building Society has extended its range of Help To Buy scheme mortgages by announcing its support for the Scottish Government’s new Help to Buy Small Developers’ Scheme which is designed specifically support smaller housebuilders.

All of Leeds Building Society Help to Buy mortgages on new-build properties in England, Wales and Scotland come with a free valuation on properties up to £500,000, and deals include a two-year fixed rate at 75% loan-to-value (LTV) at 2.49% and five-year fixed rate at 3.29%, again at 75% LTV. For a limited time, the Society has removed the £199 booking fee from its entire mortgage range and has increased the benefit of the free valuation offered as part of its fees-assisted deals from £335 to £560, which will cover properties worth up to £500,000 (previously £200,000). 

Santander has cut rates on its Help to Buy: Mortgage guarantee fixed-rate range. The two-year fixed-rate product is down 0.8% to 4.69% on loans up to 95% LTV, while the five-year fixed rate is reduced by 0.6% to 4.99%, again up to 95% LTV. Both mortgages are available with no product fee. Santander has also launched two new two-year fixed-rate remortgage products at 1.59% up to 60% LTV, and 1.69% up to 75%. Both deals have a booking fee of £1,495.  A new five-year fixed-rate is being offered at 2.45% up to 60% LTV with a £995 booking fee, available to homebuyers and remortgagers.

Other rate reductions are being offered to homebuyers and remortgagers, including a two-year fixed rate at 2.14% and five-year fixed rate at 3.19%, both at 80% LTV with a booking fee of £995. A two-year tracker is now 1.59% on loans up to 75% with a £995 booking fee, while the Flexible Offset Lifetime Tracker is 2.99% with a £495 booking fee available up to 75% LTV.

Yorkshire Building Society has launched new two-year and five-year fixed rate for remortgages at up to 65% LTV. The two-year fixed-rate deal has a rate of 1.64% with free standard valuation and legal services, while the five-year fixed rate at 3.19% offers free standard valuation and legal services with £500 cashback on completion. Both products have a £345 product fee and are available online, by phone or in branch.

Another lender to reduce its rates is the Skipton Building Society, which is offering its lowest-ever two-year fixed rates, down by up to 0.69%. Interest rates for purchasers now start at 1.36% on loans up to 50% LTV with £995 fee, and the new range includes two fee-free two-year fixed rates at 1.93% to 75% LTV and 3.28% to 90% LTV. The biggest rate reduction is Skipton’s two-year fixed-rate deal at 3.09% for loans up to 90% LTV with a £995 fee. Remortgage customers also benefit from rate reductions, with a fee-free two-year fixed rate to 60% LTV at 1.95%, and a two-year fixed rate to 85% LTV at 2.59%, both with a £995 fee.

Clydesdale Bank has a new five-year fixed-rate to 90% LTV at 3.99%. The deal carries an arrangement fee of £999 for new customers or £499 for existing purchase customers. Until the end of February, Clydesdale is offering residential home purchasers moving home £1,000 cashback on loans between £50,000 and £999,999.

The Post Office has a range of mortgages to 60% LTV, including a two-year fixed rate at 1.39%, with an arrangement fee of £1,995 or 1.69% with a lower fee of £995, free standard valuation fees and free standard legal fees for remortgagers. At up to 75% LTV, the Post Office is offering a two-year fixed rate of 1.99% with no fee, again with free standard valuation and, for remortgagers, free standard legals.

Tesco Bank has a two-year tracker mortgage at 1.5% (Bank of England Base Rate + 1%) on loans up to 70% LTV. There is a non-refundable booking fee of £195 and a product fee of £800. Remortgage customers get free standard legals the first standard valuation fee paid. Tesco Clubcard holders also get Clubcard Points on their mortgage monthly payment.

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