Mortgage bulletin for week commencing Monday 27 January

Posted 27 January 2014

One in four people hope to move into a new home this year according to research by Ocean Finance. The figures show that 26% of adults in the UK hope to move into a new buy or rental property in 2014, with nearly half of the 18-24 age group preparing to move into their own place for the first time. This revival in expectation is being met with ever-more attractive offers from mortgage providers.

Nationwide Building Society has launched two new Save To Buy two-year fixed rates at 95% loan-to-value (LTV). Interest rates are 4.99% with a £900 product fee and 5.39% with no product fee, with rates for existing Nationwide mortgage customers reduced by 0.1% to 4.89% and 5.29% respectively. The product fee is reduced to £500 for first-time buyers, and a non-refundable booking fee of £99 is payable on reservation. The new Save to Buy mortgage products are available through Nationwide's branches, though for existing Nationwide mortgage customers moving home, the products are available through all channels.

Tracie Pearce, head of group mortgages at Nationwide, says: "These new products at 95% LTV are further evidence that Nationwide is strongly committed to supporting both first-time buyers and home movers. We enable homebuyers with smaller deposits to access very competitive rates - nearly one in four of the mortgages we provide are to first-time buyers."

Nationwide has also announced the reduction by 0.3% in the cost of all of its other 95% LTV mortgage products.

The Mortgage Works (TMW) has launched a range of three- and five-year fixed-rate and variable-rate buy-to-let products. TMW has expanded its mortgage range with new two-year fixed-rate products at 75% LTV, with rates starting at 3.64%. A remortgage option is available, benefiting from free standard valuation and legals, with a rate of 3.84%. Both have an arrangement fee of £1,995.

Adding to TMW's range of buy-to-let products are new three-year and five-year fixed rates at 75% LTV. The three-year fixed-rate mortgage has a rate of 4.49%, while the rate for the five-year fixed-rate mortgage is 4.99%, both with a fee of £995. A new Lifetime Variable rate for buy-to-let customers, linked to the TMW Managed Rate, currently at 4.99%. This product is free of an early repayment charge (ERC) after six months and comes with an arrangement fee of £995 and is available up to 75% LTV.

Henry Jordan, managing director of The Mortgage Works, says: "TMW is now expanding on its range of competitive fixed and variable rate buy-to-et products, which is great news for both experienced and first-time landlords and for those customers looking to better their standard variable rate. The new, longer-term three-year and five-year fixed-rate products can offer landlords greater payment security, whilst the new two-year fixed-rate products provide more choice, especially those with larger loan requirements."

Leeds Building Society has launched a new ten-year fixed-rate mortgage for borrowers wanting to fix their monthly repayments for longer term security. Available for loans up to 65% LTV, the rate is 4.49% with fees of £199 and free standard valuation up to £335. Borrowers who are remortgaging also benefit from free legal services.

Maximum loan value is £500,000 and ECRs are payable, tapering from 6% in the first two years. Kim Rebecchi, sales and marketing director at Leeds Building Society, remarks: "We expect the opportunity to fix for the longer term to appeal particularly to borrowers who have only ten years or so left on their current mortgage term and want to fix their monthly repayments and enjoy the peace of mind this gives them for the Leeds Building Society has launched new two-year fixed-rate mortgages with incentives, starting at 1.79%.

Borrowers wanting to fix at a competitive rate with Leeds Building Society for two years and up to 65% LTV can choose a Fees Assisted two-year fixed-rate mortgage at 1.79% with a completion fee of £1,250; or 1.99% with a completion fee of £250. Each mortgage includes a free standard valuation up to £335 and borrowers who are remortgaging also benefit from free legal services.

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