Mortgage bulletin for week commencing Monday 24 February

Posted 24 February 2014

With new figures showing mortgage lending has increased 33% in the past year and housebuilding at its highest point for six years, the choice for homebuyers and buy-to-let investors continues to grow.

Skipton Building Society has joined the government-backed Help to Buy Equity Loan scheme by offering first-time buyers the choice of new two-year, three-year and five-year fixed-rate products, and new two-year and three-year discount rate mortgages. All come fee-free and with free valuation and £500 cashback on completion.

Skipton's 75% loan-to-value (LTV) rates are 2.89% fixed for two years, 3.09% fixed for three years and 3.69% fixed for five years. Discounted variable rates mortgages, again at 75% LTV, are 2.59% fixed for two years and 2.69% fixed for three years. Early repayment charges (ERCs) apply while overpayments of up to 10% per annum are allowed without charge for the length of the fixed rate term. These products are available to direct customers, online and via selected intermediaries.

Specialist buy-to-let lender Paragon Mortgages has launched a new five-year fixed-rate product specifically aimed at large-scale landlords at 5.49% with a 2% product fee and a maximum LTV of 75%. The product is available for single unit properties, houses of multiple occupation and multi-unit blocks.

A number of banks and building societies are offering some good deals on short-term and long-term tracker mortgages.

Santander has a 60% LTV lifetime tracker of Bank Base Rate (BBR) plus 1.99% available for loans of between £25,000 and £1m. The mortgage has no ERCs, no booking fee and no penalty for overpayments of £500 or more.

TSB has a two-year tracker product for loans up to 60% LTV at BBR plus 1.04% with product fee of £1,995 or BBR plus 1.79% with no product fee. ECRs are 3% in the first year and 1.5% in year two. For first-time buyers only, an 85% LTV two-year tracker is BBR plus 2.69% with no fees, and for loans up to 80% LTV the two-year fixed- rate is reduced to BBR plus 2.34%. The TSB deals revert to the bank's homeowner variable rate, currently 3.99% after the fixed term.

Yorkshire Building Society is offering two-year tracker loans at 65% LTV at BBR plus 1.34% for remortgagers or with £500 cashback for first-time buyers at BBR plus 1.49%. Two-year trackers at 85% are BBR plus 2.79 for first-time buyers and those moving home and includes £500 cashback on completion, while remortgagers borrowing up to 85% LTV receive free standard legal services and free standard valuation. All of these deals have a product fee of £345 and revert to Yorkshire BS's standard variable rate, currently 4.99%, after the fixed term.

HSBC is offering a premier lifetime tracker at BBR plus 1.49% for loans up to 70% LTV, BBR plus 2.09% at 80% LTV and BBR plus 3.69% at 90% LTV. All of these options have a booking fee of £299 and revert to the HSBC variable rate, currently 3.94% after the fixed period.

NatWest is offering three two-year tracker products. At 60% LTV the initial rate is BBR plus 1.29% with a £999 product fee or BBR plus 1.89% with no fee. At 70% the interest rate is BBR plus 2%, again with no fee. All three products have ECRs of 1% in the first year and 0.5% in the second year, and revert to the bank's variable rate, currently 4%, after the fixed term.

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