Mortgage bulletin for week commencing Monday 14 July

Posted 14 July 2014 by Keith Osborne

Professional mortgages, for those working in a range of professions from solicitors and accountants to dentists and vets can benefit from reduced rates on a selection of Scottish Widows Bank two-year and three-year Professional and Flexible mortgages across its mortgage range.

Rates on two-year fixed-rate professional mortgages above 60% loan-to-value (LTV) have reduced between 0.10% and 0.30% with rates starting 2.79% with a £999 fee or 2.49% with a £1,499 fee. All rates on three-year fixed-rate professional mortgages have reduced with rates starting at 2.79% with a £1,499 fee.

Scottish Widows' two-year fixed-rate flexible mortgages above 60% LTV start from 2.99% with a £999 fee, while the three-year fixed-rate flexible mortgages now starting at 2.99% with a £1,499 fee. The two-year base rate tracker professional mortgages above 60% start at 2.89% with a £999 fee (2.19% + Bank of England base rate.

Mike Jones, managing director of Scottish Widows Bank says: "There is a clear requirement for niche products, such as professional and flexible mortgages, from a segment of the home-buying public and we are making a number of changes to our product range that will provide brokers with an even more competitive suite of products for their clients."

New peer-to-peer mortgage lender Landbay, has entered the market, offering three-year interest-only deals at 4.8% at 60% LTV, 5.03% at 70% LTV, 5.12% at 75% LTV and 5.43% at 80% LTV. John Goodall, co-founder and CEO of Landbay says: "It is great to get the first mortgage under our belts, funded by 85 individual lenders, who are now set to enjoy great returns and at a level of risk they have chosen themselves."

The range carries a £750 application fee, inclusive of valuation fee, rising to £99 for mortgages for homes of multiple occupation (HMOs), and a product fee of 2% for individual borrowers and 3% for corporate borrowers.

The established specialist buy-to-let lender Paragon Mortgages has refreshed its product range catering for large-scale and professional landlords. Its new range of fixed-rate products includes a new two-year fixed-rate at 4.45% with a 2% product fee and is available for single, self-contained properties and HMOs and multi-unit blocks.

Their tracker rates include a lifetime tracker, with a 1.50% product fee. Rates are LIBOR+3.9% at 65% LTV, LIBOR+4.1% at 70% and LIBOR+4.35% at 75%. The range of tracker rate products includes LIBOR+3.6% at 65% with 3% product fee or LIBOR+5.1% with no fee.

John Heron, managing director of Paragon Mortgages, says: "We have refreshed and expanded our product range to ensure that we remain competitive in the professional and large-scale landlord market."

Birmingham Midshires is offering a two-year tracker at 2.24% at 60% LTV, reverting to its standard rate, currently 4.84%. The lender also has a two-year fixed-rate buy-to-let mortgage at 60% LTV at a rate of 2.34%. Both deals have a completion fee of £275 and arrangement fee of £2,500.

NatWest currently has a five-year fixed-rate buy-to-let mortgage at 3.95% at 60% LTV with a product fee of £1,995 or 4.79% with no product fee. At 75% LTV, the rate is 4.29%, again with a £1,995 product fee.

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