Mortgage bulletin for week commencing Monday 14 April

Posted 15 April 2014 by Keith Osborne

A new best buy fixed-rate mortgage is now available through Norwich & Peterborough Building Society (N&P). At a rate of 2.98% for the five year fixed-rate mortgage, the N&P product is among the lowest on the market for loans up to 75% loan-to-value (LTV).

N&P mortgage manager Richard Barker says: "This is an excellent proposition for new borrowers with a deposit of at least 25% looking to fix their mortgage product at a highly competitive rate. Homeowners considering re-mortgaging should take into account the whole cost of borrowing -including product fees - which vary widely in the current market and particularly on fixed rate mortgages."

Available only to new borrowers, applications for this fixed-rate product can be made in N&P branches and by telephone for house purchases and re-mortgages, with a product fee of £1,295. Other product features include a 10% penalty-free repayment facility per annum, subject to a £10,000 cap.

With private rental properties in high demand, buy-to-let is a popular avenue for many investors. On the buy-to-let market, there are a range of five year fixed-rate mortgages available, including a 60% LTV deal with Virgin Money for intermediaries at 4.09%, requiring a minimum income of £25,000. The rate rises to 4.17% for loans to 70% LTV and 4.55% at 75% LTV. All products carry a product fee of £1,995 and £750 cashback, and have an early repayment charge (ERC) of 5% until 1st July 2019.

Paragon Mortgages' five year fixed-rate buy-to-let product is 5.49% on loans up to 75% LTV, with a 2% product fee. ERCs are payable until 30 April 2019 at a rate of 5%. Santander for Intermediaries is offering a five-year fixed-rate buy-to-let at 3.99% with a booking fee of £1,495 on loans at up to 60% LTV completed before 14 September, 2014. A similar deal at 75% LTV is 4.34%.

Many banks and building societies offer two year fixed-rate mortgages for buy-to let customers. HSBC offer a two year deal on loans up to 75% LTV at 3.59% with a booking fee of £1,999 or 3.29% on loans up to 65% LTV, again with a £1,999 booking fee. HSBC Premier current account customers get preferential rates of 3.29% at 75% LTV and 2.99% at 65% LTV. Both Premier Account products carry the same £1,999 booking fee.

Leeds Building Society is offering a two year fixed-rate buy-to-let mortgage at 2.89% with a product fee of £800 or 3.25% with no fee on loans up to 60% LTV. For those with a 30% deposit, Leeds offers 3.69% with a product fee of £800 or 4.09% with no fee.

Buy-to-let customers looking to switch their mortgage provider are being offered a two year fixed-rate of 3.69% with Halifax on remortgage loans up to 60% LTV with a product fee of £995 and Mortgage Account Fee of £295. For remortgage loans up to 75% LTV the deal will cost 4.39% during the two-year fixed-rate period. All loans of 75% LTV or less can be arranged on an interest-only or repayment basis.

Finally, TSB is offering a rate of 3.69% fixed for two years on buy-to-let mortgages, with a product fee of £995 and Mortgage Account Fee of £265.

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