Mortgage bulletin for week commencing Monday 24 March

Posted 24 March 2014 by Keith Osborne

The cost of owning a home in the UK is now, on average, £124 per month (£1,488 a year) lower than renting, according to research by Halifax. The average monthly costs associated with owning a three-bedroom house stood at £645 in December 2013; £124 (16%) lower than the typical monthly rent of £769 paid on the same property type. In 2009 the difference was just £6 between the average monthly costs for owning, £646, and renting £652, and in 2008, the monthly ownership cost was on average £226 (31%) higher than rental costs.

Some of the deals available for those looking to purchase their first home, remortgage their current home or move to a new house include a range of five-year fixed-rate mortgages.

The Chelsea Building Society is offering a five-year fixed-rate mortgage at 2.94% on loans up to 65% loan-to-value (LTV). The product carries a product fee of £1,545. A similar 65% LTV deal, but with a lower product fees of £345 is offered at 3.19%. For first-time buyers and those moving home with smaller deposits, The Chelsea is also offering five-year fixed-rate 95% LTV loans at 5.19% with a product fee of £1,545 or 5.49% with no product fee.

HSBC's five-year Fixed Special mortgage offers the same headline rate of 2.94% on loans up to 60% LTV, with a booking fee of £1,499, on mortgages up to £500,000. For those with smaller deposits, HSBC's five-year fixed-rate 90% LTV loan rate is 4.69% with a booking fee of £999, or 5.09% with no booking fee.

A five-year fixed-rate mortgage with Yorkshire Building Society at 65% LTV is currently 3.34% for those moving home or first-time buyers. Customers can choose between free standard legal fees and legal service or £500 cashback, paid on completion, and both carry a product fee of £345 and £130 mortgage application fee. For those with a smaller deposit, the Society offers a 90% LTV product to first-time buyers, remortgagers and home movers at 4.69% on loans up to £500,000. A product fee of £345 and an application fee of £130 are payable, but the deal offers £500 cashback on completion.

Staffordshire's Leek United Building Society has a 90% LTV five-year fixed-rate for loans up to £500,000 for existing borrowers at 3.99% with no fees, or 4.75% for first-time buyers to a maximum of £142,000 with a booking fee of £100 and application fee of £895. Available direct or through intermediaries, post code restrictions may apply, and no loans will be granted for the purchase of apartments or maisonettes or to homebuyers in Scotland or Northern Ireland.

Barclays is offering a range of five-year fixed-rate mortgages. A 60% LTV deal is currently 2.95% with an application fee of £999, while a loan up to 65% LTV is 3.09% with application fee of £1,999. Remortgagers and purchasers borrowing between 75% and 80% LTV with Barclays Great Escape five-year fixed-rate product will pay 3.74% with no application fee or 3.55% with an application fee of £999. Barclays is also offering a ten-year fixed-rate mortgage at up to 70% LTV at 3.89%, with an application fee of £1,499.

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