Mortgage bulletin for week commencing 26 January 

Posted 27 January 2015

Downsizing continues to be the key driver of property moves according to the latest Downsizers Report from Lloyds Bank. With over half (52%) of homeowners planning to sell their property in the next three years saying they’d like to move to a smaller house, the report shows that trading down from a detached house to a bungalow can free up £103,715 on average, with those moving to a semi-detached house stand to raise up to £121,686, or as much as £263,000 in London.

TSB has a range of mortgages for home movers, including no-fee options. Their best two-year fixed rate at 60% loan-to-value (LTV) is 1.49% on loans from £200,000 to £1m, with a £1,995 product fee. A two-year, fixed-rate, fee-free option to 60% LTV is available at 2.34% on loans up to £199,999. For those looking for a longer-term rate, TSB is offering a range of ten-year fixed-rate mortgages including a 60% LTV product at 3.44%, 75% LTV option at 3.49%, 80% LTV at 3.84% 85% at 4.29% and 90% at 4.75%. All of these ten-year deals come without any product or mortgage account fees. From this week, TSB mortgage will be available through intermediaries, as well as direct through branches and online. 

Nationwide has reduced its ten-year fixed rate at up to 60% LTV by 0.55% to a rate of 2.94% for new mortgage customers, and 2.84% for existing mortgage customers. This comes with a £999 product fee, reduced to £499 for first-time buyers. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

Five-year fixed-rate deals with Nationwide have also been reduced by up to 0.40%, with rates starting from 2.44% for new mortgage customers. Richard Napier, Nationwide’s director of mortgages and savings, says: “There has been a growing trend of customers opting for longer-term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently introduced ten-year fixed-rate mortgages proving a popular addition to the range.”

Barclays is offering a range of loyalty rates for current account customers. Those who have paid into their account a minimum of £800 in each of the last three months may be eligible. Deals include a two-year fixed rate at 2.19% on loans up to 80% LTV, while at 85% LTV the rate rises to 2.63% or 3.39% at a maximum of 90%. All three products have an application fee of £499. Barclays is offering a two-year tracker mortgage at 1.29% at 60% LTV with an application fee of £999 and a three-year tracker at 1.65%, with an application fee of £1,999.

The Chelsea building society has a five-year fixed-rate mortgage for those moving home at 2.29% on loans up to 65% LTV with a £1,545 product fee, or 2.99% with a lower fee of £345, while for buy-to-let investors, Paragon Mortgages are offering a five-year fixed rate of 4.8% at 75% LTV on single, self-contained properties with a 2% product fee, or 5.25% with no fee.

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