HSBC reintroduces sub-one per cent mortgage; YBS holds standard variable rate – round-up

HSBC reintroduces sub-one per cent mortgage; YBS holds standard variable rate – round-up

 

The sub-one per cent deals are two-year tracker products at 60 per cent loan to value (LTV) which have seen a rate reduction of 0.15 per cent. They are now priced at 0.99 per cent, which is 0.74 per cent plus the current base rate of 0.25 per cent. 

These are available to standard residential existing first-time and homeowner borrowers who are remortgaging, switching and taking out further advances. 

The products have a £999 fee. 

Also at 60 per cent LTV, its five-year fixed remortgage with a £999 fee has been reduced by 0.10 per cent to 1.44 per cent and its five-year fixed fee-free remortgage has been reduced by the same amount to 1.59 per cent. 

At 85 per cent LTV, its five-year fixed purchase and first-time buyer product with a £999 fee has been reduced by 0.10 per cent to 1.79 per cent, and the 90 per cent LTV equivalent has received a similar cut to 2.19 per cent. 

Reductions of up to 0.10 per cent have also been made to its buy-to-let range. 

Michelle Andrews, HSBC UK’s head of buying a home, said: “We are following rate reductions just before Christmas with a further rate refresh, where we are reducing our fixed rate mortgages by up to 0.1 per cent, whilst our more flexible tracker deals are also being reduced across the range. 

“By providing a sub-one per cent option for customers with a higher amount of equity and reducing higher LTV rates for house purchases, we are offering those wishing to refinance their existing home, or seeking their first or next move on the property ladder, access to highly competitive rates with the option to choose between more flexible deals or secure longer term payment security.” 

 

Yorkshire Building Society maintains SVR 

Yorkshire Building Society has decided to hold its standard variable rate (SVR) despite other lenders increasing the rate in light of the base rate change. 

Its SVR is currently 4.49 per cent. 

The mutual will also add 0.10 per cent to its variable rate savings accounts. 

Chris Irwin, director of savings at Yorkshire Building Society, said: “It has been a tough few years for savers so we’re delighted to be able increase our savings products at the same time as protecting our borrowers from the increase. 

“With no external shareholders to satisfy we have protected savers as far as possible during the extended period of a record low bank rate, maintaining an average interest rate on our accounts which has been consistently higher than the market average.”

Irwin added: “It is also pleasing that our robust financial position allows us to protect repayments for some of our borrowers by not increasing our SVR.” 

All changes will come into force on 1 February. 

Santander removes all 60 per cent LTV fixes and adjusts rates

Santander removes all 60 per cent LTV fixes and adjusts rates

 

This includes two and five-year fixed mortgages either with no fee or with product fees up to £2,499, as well as equivalent products in its Help to Buy range. 

The lender has also increased fees and rates between 75 and 85 per cent LTV. Two and five-year fixes at 75 per cent LTV either with a £999 fee or no fee have been increased by 0.05 per cent. 

An 80 per cent LTV deal fixed for two years has also risen by 0.05 per cent to 1.44 per cent. This product is a remortgage and has a £999 fee. 

Additionally, the fees on a pair of two-year fixed 80 and 85 per cent LTV purchase mortgages have increased by £749 to £999. 

At 90 per cent LTV, a two-year fixed purchase product has had its rate reduced by 0.10 per cent to 1.64 per cent and the fee increased by £250 to £999. 

Among its product transfers, some fixed and tracker rates will rise by up to 0.15 per cent and at 85 per cent LTV, increases will be as high as 0.20 per cent. The rate on its buy-to-let two-year fixed product transfer at 75 per cent LTV has increased by 0.05 per cent. 

Santander offers personalised rates to borrowers who are transferring. 

Elsewhere, Santander has reduced rates at 85 to 95 per cent LTV by up to 0.35 per cent, with the biggest cut being made to its five-year fixed fee-free remortgage at 90 per cent LTV which now has a rate of 2.99 per cent. 

The changes will come into effect on 19 January. 

Accord Mortgages reprices BTL mortgages

Accord Mortgages reprices BTL mortgages

 

The changes will come into force on Friday and selected products will be withdrawn on Thursday to allow changes to take place.

Its two-year fixed rate at 80 per cent LTV has gone from 2.87 per cent to 2.67 per cent. It is available for purchase and remortgage and is subject to a £995 fee, free standard valuation and £250 cashback.

A discounted variable product at the same LTV has fallen from 2.67 per cent to 2.47 per cent. It is also available for purchase and remortgage and is subject to a £995 fee and free standard valuation.

The lender is also increasing the rates of all fixed rate products at 65 per cent LTV by up to 0.09 per cent.

It has also increased selected fixed rate at 60 per cent LTV by up to 0.06 per cent, including the two-year fixed rate remortgage product which has gone from  1.48 per cent to 1.51 per cent. It comes with a £995 fee, £250 cashback and free standard valuation.

Its five-year fixed rate remortgage product has increased from 1.79 per cent to  1.85  per cent. It has a £495 fee, free remortgage legal services and free standard valuation.

Selected fixed rate products at 75 per cent LTV have also gone up by 0.14 per cent, while certain discounted variable rate products at 60, 65 and 75 per cent LTV will increase by 0.15 per cent.

Simon Garner, buy-to-let mortgage manager at Accord Mortgages, said: “We’re pleased to be able to reduce our higher LTV buy-to-let mortgages to help landlords with less equity benefit from improved choice, but in light of changing market conditions we’ve also had to increase selected rates across lower LTV ranges. As always, we’re letting brokers know about the upcoming changes in advance.”

Kensington partners with Rothesay for long-term fixed rate mortgage

Kensington partners with Rothesay for long-term fixed rate mortgage

 

The flexi fixed for term range lets borrowers fix the rate paid on their mortgage for their loan term, which can be between 11 and 40 years.

The range is available for new purchases and remortgage, with new purchases available up to 95 per cent loan to value (LTV) and remortgage available up to 85 per cent LTV.

Rates start from 2.83 per cent at 60 per cent LTV for a 15-year term. For a 25 and 30-year term at 60 per cent LTV, rates begin from 2.85 per cent and 2.9 per cent respectively.

For 25 and 30-year terms at 95 per cent LTV rates start from 3.71 per cent and 3.77 per cent respectively.

Affordability is calculated on the fixed interest rate, rather than standard variable rate, which may allow  customers to borrow more. Kensington said this could benefit first-time buyers or those looking for more expensive property.

The mortgage is portable and can be transferred to a new property and has free legals and no product fees. A 0.75 per cent proc fee will be paid to brokers, which covers mortgage clubs and networks.

No early repayment charges apply for moving or selling homes, critical illness or death. Overpayments of 10 per cent per year are permitted and customers can get a further advance after 12 months subject to affordability.

The firm had previously hinted at its plans for a long-term fixed rate launch, with Kensington Mortgages’ new business director Craig McKinlay saying it was planning to enter the space and that those products would improve affordability for first-time buyers.

Mark Arnold (pictured), chief executive of Kensington Mortgages, said over the last 12 years there have been ultra-low interest rates but that looked set to change with successive interest rate rises on the horizon.

He said that a fixed for term mortgage, which was popular in Europe, was “likely to become increasingly attractive in a rate rising environment”.

He added: “No two people or their circumstances are the same. Whether you’re a first-time buyer or homeowner wanting an affordability boost, a self-employed worker worried about remortgaging, or someone wanting greater certainty on monthly repayments – our new flexi fixed for term can help. With one fixed monthly payment until the mortgage ends, extra borrowing power, and added flexibility for any life events that may happen, it is that simple.”

Arnold said that a long-term fixed rate may not be suitable for everyone, which is why the product has increased flexibility, but that it was a “serious alternative for getting people onto the property ladder who otherwise would be excluded”.

Prateek Sharma, chief investment officer at Rothesay, said: “As the UK’s largest specialist pensions insurer, Rothesay is well-positioned to support these long-term loans which have an important role to play in the market.

“We are always looking for innovative ways to invest in long-term, secured and high quality assets, and firmly believe that these mortgages can provide the certainty that many borrowers are looking for. Through our partnership with Kensington, we’re pleased to support the Government’s ambition to make new types of mortgage products available which are purposefully designed to help increase home ownership while providing long-term security.”

Economic secretary to the Treasury John Glen said: “I am delighted to see new products like this, and am always pleased to see innovation in the mortgage market in the UK.

“Greater product choice creates more competition and more options for consumers, in this case particularly those who value certainty in their repayments over a longer period of time.”

Long-term fixed rates have previously not had significant take-up in the UK, with figures from UK Finance showing that fixed rates over 10 years represented less than one per cent of total lending for most months since 2015. However, new products have come to market with Habito launching a 40-year fixed rate mortgage earlier this year.

TSB hikes low LTV rates

TSB hikes low LTV rates

 

The headline rate changes have been made to the bank’s five-year fixed remortgage products with three year early repayment charges (ERCs). Options with free legals as well as those without and £300 cashback have been increased to 1.89 per cent at 60 per cent LTV and 2.09 per cent at 60-75 per cent LTV. 

Rates on five-year fixed purchase products have increased by 0.30 per cent and now stand at 1.89 per cent at 60 per cent LTV and 1.99 per cent at 60-75 per cent LTV. 

Across higher LTV tiers, the bank has made rate cuts. 

These include two and five-year fixed rate mortgages at 85-90 per cent LTV which have been reduced by 0.20 per cent. 

For fee-free options, the rate for a two-year fixed purchase product is now 2.19 per cent, while the £995 fee paying option is 1.89 per cent. 

Five-year fixed equivalents are priced at 2.64 per cent and 2.44 per cent respectively. 

Natwest ups rates across new and existing products

Natwest ups rates across new and existing products

 

The lender increased the rates for certain two and five-year fixed rate purchase and remortgage products between 60 and 75 per cent LTV.

The biggest change occurred at the 60 per cent LTV tier which increased by 0.2 per cent from 1.18 per cent to 1.38 per cent.

Its two-year fixed rate purchase product has increased form 1.31 per cent to 1.47 per cent, whilst its five-year fixed rate purchase has grown from 1.38 per cent to 1.56 per cent. Both now have cashback of £150.

In its shared equity range, it has upped rates on its two-year fixed rate purchase and certain Help to Buy products. Its two-year fixed rate purchase product at 60 per cent LTV has gone from 1.18 per cent up to 1.33 per cent with a product fee of £995 and £400 cashback.

The lender has decreased two and five-year fixed rates in its buy-to-let (BTL) range by up to 0.1 per cent. This includes two-year fixed rate at 70 per cent LTV falling from 1.68 per cent to 1.58 per cent, and a five-year fixed rate at the same LTV decreasing from 1.93 per cent to 1.83 per cent.

On the switcher side, there are increases of up to 0.23 per cent on selected two and five-year fixed rate deals, including high value rate switcher products.

Its two-year fixed rate switcher at 60 per cent LTV has gone from 0.95 per cent to 1.18 per cent, whilst its five-year fixed rate switcher at the same LTV has been upped from 1.14 per cent to 1.36 per cent. Both come with a £995 fee.

In its green mortgage range, the lender has increased rates by up to 0.2 per cent for select two-year and five-year fixed rate purchase and remortgage products.

This includes five-year fixed rate purchase product that has gone from 1.22 per cent to 1.34 per cent and five-year fixed rate remortgage which has risen from 1.17 per cent to 1.37 per cent. It has product fee and cashback £350.

Natwest is also withdrawing a BTL two-year fixed rate remortgage deal at 75 per cent LTV. It was priced at 1.29 per cent with a £1,495 product fee.

Nationwide relaunches two-year tracker mortgages

Nationwide relaunches two-year tracker mortgages

 

The society is also reintroducing tracker mortgages for existing customers moving home, in need of additional borrowing, those who are switching and those using shared equity schemes with rates starting from 0.79 per cent.

Nationwide’s first-time buyer tracker mortgages also come with £500 cashback, while those looking to remortgage to the mutual can choose between £500 cashback or free standard legal fees.

The rates for new customers moving home include a two-year tracker rate at 60 per cent LTV launched at 0.79 per cent. There is also a two-year tracker rate at 75 per cent LTV launched at 0.84 per cent and a two-year tracker rate at 90 per cent LTV launched at 1.29 per cent. All have a £1,499 fee.

In regards to remortgagors, there is a two-year tracker rate at 60 per cent LTV launched at 0.89 per cent, with a £1,499 fee and two-year tracker rate at 75 per cent LTV at 1.04 per cent, with a £999 fee. There is also a two-year tracker rate at 85 per cent LTV launched at 1.16 per cent, with a £999 fee.

Henry Jordan, director of mortgages, said: “By pricing our trackers 0.40 per cent below equivalent fixed rates we can ensure they are not only competitive at the current time, but that they remain competitive should bank rate increase in the near future.”

Gross bridging lending reaches highest volume since 2018

Gross bridging lending reaches highest volume since 2018

 

According to Bridging Trends’ latest report, the value of bridging loans transacted in Q3 was up from £146.5m in Q2 and a 65 per cent increase from the same period last year.

The report added that purchase of investment property was the most popular use of bridging loan for the second quarter in a row, accounting for 28 per cent of transactions.

Traditional chain break made up 13 per cent of bridging loan use, down 20 per cent on the previous quarter, and auction finance grew from four per cent in Q2 to 11 per cent in Q3.

The average monthly interest rate was 0.72 per cent, down from 0.79 per cent in Q3, whilst the average term contracted slightly from 12 months in Q2 months to 11 months in Q3.

Dale Jannels, managing director of Impact Specialist Finance, said: “These figures show that bridging finance is now a better understood product for many brokers and they have much more confidence in recommending this solution to their customers.

“The stamp duty holiday has helped bridging finance to be more widely accepted by the mainstream industry as a need to meet speed demands, but investors with the intention to renovate have also been at the forefront of recent requests.”

First charge bridging loans made up the majority of the market at 90 per cent, unchanged from the previous quarter, and regulated bridging loans fell from 41.6 per cent in Q2 to 37.7 per cent in Q2.

According to the report this is the fifth consecutive quarter of falling regulated bridging loans.

Chris Oatway, director of LDNfinance, said: “Regulated transactions accounting for over a third of the market stands out when you consider the limited number of bridging lenders who are able to transact regulated business and shows there’s opportunity there for more lenders to enter this market.”

Loan to value highest level since reporting started

The average loan to value (LTV) for bridging loans was pegged at 60.2 per cent, up from 54.9 per cent in Q2. This is the highest LTV recorded since the report launched in 2015 which indicates borrowers are taking advantage of low rates and exploiting liquidity opportunities, the report explained.

Chris Whitney, head of specialist lending at Enness Global, said: “LTVs are up with borrowers possibly taking advantage of increasingly cheaper money in the light of reports that mortgage rates in general are heading upwards imminently.”

He added: “However, with continuing competition and even more new entrants in the short-term lending space, it will be interesting to see how that pans out with so many lenders looking to increase market share in a seemingly very liquid environment. However, at 60 per cent LTV I think we are still seeing prudent levels of borrowing by people and responsible lending from the funders.”

Oatway said: “It surprises me that the average LTV is at record high levels at just 60 per cent LTV. In general, we have seen considerable demand for higher leverage deals at 70 to 75 per cent LTV, where clients keep as much equity in their back pockets for future investments.”

 

Processing times reflect increased volumes

The report added that processing times for bridging loans were estimated at 53 days, which is up from 47 days in Q2.

Whitney said: “I was not surprised to see processing times up. With increased volumes I think we have seen things take longer, with many lenders struggling to recruit good underwriters and valuers stretched to the limit. With the highest use of funds being for investment purchase I think it really shows how much confidence people have in UK real estate.”

The report collates bridging loan completions from Adapt Finance, Brightstar Financial, Capital B, Clever Lending, Complete FS, Enness Global, Finanta, Impact Specialist Finance, LDNfinance, Optimum Commercial, Sirius Group, and UK Property Finance.

TSB ups low LTV rates by 0.45 per cent

TSB ups low LTV rates by 0.45 per cent

 

Two-year fixed mortgages for first-time buyers and house purchase have risen by 0.30 per cent. 

The 0-60 per cent LTV mortgage with a £995 fee is now set at 1.49 per cent while the fee-free option is 1.74 per cent. At 60-75 per cent LTV, the £995 fee mortgage has a rate of 1.54 per cent while the fee-free alternative is 1.79 per cent. 

Five-year fixes for first-time buyers and house purchase with early repayment charges have risen by up to 0.40 per cent. 

The largest increases of 0.45 per cent have been made to the two and five-year fixed remortgages, with options of either free legals or no legal option but a £300 cashback. 

The two-year fixed product at 0-60 per cent LTV has gone up to 1.74 per cent and the 60-75 per cent LTV deal has increased to 1.84 per cent. Across five-year fixes, remortgages have risen to 1.45 per cent at 0-60 per cent LTV and are now 2.04 per cent for 60-75 per cent LTV. 

The bank has also withdrawn its two-year tracker mortgages for first-time buyers, house purchases and remortgage. 

Changes apply from today. 

Natwest raises rates at 60-75 per cent LTV

Natwest raises rates at 60-75 per cent LTV

 

Changes include the two-year fixed rate purchase product at 60 per cent LTV with no fee, which has increased from 1.26 per cent to 1.31 per cent. 

The option with a £995 fee and £150 cashback has increased to 1.18 per cent from 1.08 per cent. 

Products at 70 and 75 per cent LTV with a £995 fee have both gone up by 0.05 per cent to 1.23 per cent. 

Across the two-year fixed rate remortgage offering at 60 per cent LTV, the product with a £995 fee and £150 cashback has risen to 1.18 per cent, while the fee-free option with £100 cashback has gone up to 1.39 per cent. Both signify increases of 0.15 per cent. 

Both the £995 fee-paying and fee-free options for a five-year fixed purchase mortgage at 60 per cent LTV have increased by 0.1 per cent to 1.23 per cent and 1.38 per cent respectively. 

Five-year fixed rate remortgages at 60 per cent LTV have increased by 0.05 per cent. The fee-free option with £150 cashback is now priced at 1.39 per cent while the £995 fee paying option has a rate of 1.18 per cent. 

Across its green mortgages, Natwest has increased rates on two and five-year fixed rate purchase and remortgages at 60 and 75 per cent LTV by up to 0.15 per cent. 

Changes come into effect from tomorrow.