A two-year fixed at 75 per cent loan to value (LTV) with £999 fee has been reduced by 0.05 per cent to 1.54 per cent and the equivalent option at 85 per cent LTV has been cut from 2.99 per cent to 2.64 per cent.
For existing borrowers, a two-year fixed at 80 per cent LTV has seen a reduction from 2.04 per cent to 1.99 per cent with a £999 fee. Furthermore, a fee-free five-year fixed product at 85 per cent LTV has been reduced to 2.99 per cent from 3.29 per cent.
Changes are effective from 10 February.
Henry Jordan, director of mortgages at Nationwide, said: “In the last year we have spent much more time at home, and it has allowed more people to really evaluate what they want from a property.
“Whatever people are looking for in their new home, these latest reductions for house purchasers will help make the cost of moving home even more affordable.”
Foundation introduces 85 per cent LTVs and cuts rates
Foundation Home Loans has launched two products at 85 per cent LTV and cut rates on mortgages at 80 per cent LTV.
The new mortgages include a two-year fix with a rate of 4.34 per cent and a five-year fix at 4.69 per cent. Both products have a fee of £995.
Rate cuts include a two-year fix at 80 per cent LTV which has gone down to 3.64 per cent from 3.79 per cent and its five-year fixed alternative has been reduced from 4.29 per cent to 4.04 per cent.
For first-time buyers, a two-year fixed mortgage at 80 per cent LTV has been reduced by 10 basis points to 3.79 per cent and a five-year fix has been cut by 20 basis points to 4.19 per cent. These mortgages have a £595 fee.
George Gee, commercial director at Foundation Home Loans, said: “There is undoubtedly a growing demand in the residential space, and Foundation is looking to meet this demand with keen pricing on our near-mainstream 80 per cent LTV rates, and the introduction of two new options at 85 per cent LTV.
“With 2020 having a significant impact on many individuals’ income and the financial situation of many existing borrowers, we anticipate an increased number of clients will require specialist residential finance.”
TML enters Help to Buy
The Mortgage Lender has expanded its recently launched residential range with Help to Buy mortgages to serve borrowers using the scheme in England and Wales.
The products have a maximum loan to value of 75 per cent and include a free valuation. The rate for a two-year fix is 3.77 per cent, while the five-year fixed has a rate of 4.2 per cent.
Steve Griffiths, sales and product director at The Mortgage Lender, said: “After relaunching our residential range a couple of weeks ago brokers said what they really need right now is Help to Buy products for people who have impaired credit, complex income or are self-employed.
“We’re delighted we’ve been able to act quickly and launch Help to Buy within weeks of returning to residential lending with our core product range.”