Mortgage bulletin for week commencing Monday 12 May

Posted 12 May 2014 by Keith Osborne

With mortgage arrears at their lowest levels since 2008, confidence remains high in the market. According to figures released by the Council of Mortgage Lenders, the number of mortgages in arrears by more than 2.5% of the balance and the number of repossessions had fallen in Q3, 2013 compared with five years earlier.

Skipton Building Society has increased rates on selected products with a replacement range of residential mortgages, and withdrawn its selection of two-year tracker products. Kris Brewster, the Society's head of products, says: "We have had to increase the rates on selected products to reflect market swap rate trends, but have ensured that the new range remains attractive, with options for a range of borrowers from ordinary residential homeowners to landlords and those wanting to access the government's Help to Buy scheme."

New products that have seen a 0.1% increase include a range of two-year fixed-rates starting at 1.99% on loans to 60% loan-to-value (LTV) with a £195 application fee and an £800 completion fee or 2.49% with no application or completion fee. Two-year fixed-rate mortgages to 70% have risen to 2.09% with similar fees, and are unchanged 2.38% with no fees. At 90% LTV, rates rise to 3.99% with a £195 application fee and a £1,800 completion fee or 4.29% with a £195 application fee and an £800 completion fee. All of the above are available for purchases and remortgages and offer free standard legals and valuations for remortgages.

Coventry Building Society is offering a discounted Bank of England Base Rate (BBR) Tracker mortgage for re-mortgagers at 1.89% for two years, then their standard variable rate (SVR) of 4.74% less a 0.5% discount for the remainder of the mortgage term. The product is available on loans up to 65% LTV with a booking fee of £199 and arrangement fee of £800. For existing customers who have had a Coventry mortgage product for at least five years, the 65% LTV Flex Fixed has an initial rate of 2.09 rising to the society's SVR, currently 4.74%, for a further three years, followed by a Privilege Rate, currently 4.24% for the remainder of the term. The Flex for Term product is currently 2.25% for the lifetime of the mortgage.

Nationwide Building Society has re-priced its mortgage range, reducing rates by up to 0.20% at 80%, 85% and 90% per cent LTV and increasing rates by 0.10% at 70% LTV. Nationwide's mortgage range now includes a two-year fixed rate up to 90% is available for new customers at 3.99% and 3.89% for existing customers. The two- year fixed rate at 85% LTV for new customers is 3.14% or 3.04% for existing customers. A £99 booking fee is payable upfront on all four options and there is a £900 product fee for house purchase and existing customers moving home and a reduced product fee of £400 for first-time buyers.

The new five-year fixed-rate product up to 60% LTV is currently 3.09% or 2.99% for existing customers. Again, these have a booking fee of £99 and product fees of £900 for house purchase, remortgage and existing customers moving home, reduced to £400 for first-time buyers.

Halifax has launched a new offer designed to help first-time buyers and home movers by providing £500 cashback and no product fees on selected two-year and five- year fixed-rate products. First-time buyer mortgages include 75% LTV two-year fixed rate at 3.14% with no fee, 80% LTV two-year fixed rate at 3.54% with no fee, 90% LTV two-year fixed rate at 5.39% with no fee and 95% LTV two-year fixed rate at 5.59% with no fee. Home mover mortgages include 60% LTV two-year fixed rate at 2.64% with no fee, 75% LTV two-year fixed rate at 3.14% with no fee, and 80% LTV two-year fixed rate at 3.54% with no fee.

Leeds Building Society, in partnership with Barratt Developments, is offering Help to Buy mortgages with an introductory 0% rate. The new Help To Buy Welcome Mortgage Range is available with fixed rates of 10 years, five years and two years for 95% mortgages on an 80% share of the property value. The ten-year fixed-rate deal is 5.16%, the five-year fixed rate is 4.13% while a two-year fixed rate is currently 2.88%. All three products offer 0% interest for the first three months, have a £199 booking fee and free valuations on properties up to £200,000.

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