Mortgage bulletin for week commencing 2 February 

Posted 3 February 2015

More than 700,000 new homes and conversions have come to the housing market since 2011, according to new government figures, and over 100,000 empty homes brought back into use over the same period. It has also been announced that the numbers of empty homes are now at a record low, while new housebuilding starts are at a seven-year high. Despite this additional housing stock, demand seems still to be outstripping supply in most areas of the UK and average UK prices continue to rise.

The Chelsea Building Society is offering customers with a 25% deposit a highly competitive 1.49% two-year fixed-rate mortgage, a three-year fixed rate of 2.19%, and a five-year fixed rate at 2.74%, all at 75% loan-to-value (LTV). The rates are part of the society’s new range, which also includes a two-year fixed rate of 4.44% for loans up to 95% LTV and Chelsea’s existing 1.24% two-year fixed-rate mortgage at 65% LTV. Rate reductions at 85% LTV include a three-year fixed rate at 2.94% and a two-year fixed rate at 2.44%. All of these products have a product fee of £1,545, while the Chelsea's new two-year fixed rate at 1.59% has a lower fee of £354.

Yorkshire Building Society is helping first-time buyers get a foot on the property ladder by launching a competitive two-year fixed rate at 4.49% for borrowers with a 5% deposit (95% LTV) with an £845 product fee. Yorkshire has also slashed its two-year fixed-rate mortgage on loans up to 65% LTV to 1.29% with an £845 product fee, or 1.59% with a £345 product fee. New 75% LTV mortgage deals include a two-year 1.54% fixed rate with a £845 product fee, and a three-year 2.24% fixed rate, also with a £845 product fee.

Halifax is offering first-time buyers a range of two-year and five-year fixed-rate mortgages with no product fee. Rates start at 2.14% at 60% LTV, rising to 2.59% at 75% LTV  on loans up to £199,999, and 2.84% at 80% LTV and 3.14% at 85% LTV on loans up to £1m. A rate of 4.79% at 90% LTV is available with no fee on mortgages up to £750,000. Five-year fixed-rate products for first-time buyers include a rate of 3.14% at 60% LTV, 3.69% at 75% LTV, 3.89% at 80% LTV and 4.44% at 85% LTV. All of these products are available for loans up to £1m, while a 90% LTV rate of 5.49% is being offered fee-free on loans up to £750,000.

Platform, the intermediary mortgage lender of The Co-operative Bank, has reduced its residential two-year fixed rate to 1.59%. The deal is available on loans up to 60% LTV and has an arrangement fee of £999. It comes with a range of features offered on the majority of Platform’s products, including a £250 cashback, free standard valuation for remortgagers and purchasers, plus free legals for remortgagers.

Stuart Beattie, head of mortgages at Platform, says: “We are committed to keeping a constant eye on the market to ensure we continue to offer a great choice of competitive products to brokers and their clients.”

Other changes across Platform’s range include a five-year fixed-rate for loans up to 80% LTV at 3.19% and a rate of 2.49% at 60% LTV, while residential three-year fixed-rate mortgages through Platform now start from 2.09% for loans up to 60% LTV.

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