Coventry brings lending up to 85 per cent and cuts rates
In April, the society curbed its lending to 75 per cent LTV in response to the coronavirus pandemic.
Rate changes include a residential two-year fixed at 75 per cent LTV with a £999 fee having its rate reduced from 1.5 per cent to 1.3 per cent. The fee-free equivalent has seen its rate dropped 1.9 per cent to 1.74 per cent.
The residential five-year fixed in the same tier with a £999 fee has had its rate cut from 1.8 per cent to 1.59 per cent, and the fee-free equivalent has a rate of 1.8 per cent down from two per cent.
The 80 and 85 per cent LTV two- and five-year products have rates ranging from 1.49 per cent to 2.35 per cent and fee-free options are available.
All buy to let products have seen rates reduced and products with LTVs of 75 per cent are now available for both purchases and remortgage.
The society has also made changes to its criteria and will make use of digital valuations on residential and buy to let products while instructing physical valuations where possible.
Capital raising on owner occupied mortgages for PAYE clients and buy to let mortgages is also available up to 75 per cent LTV.
Kevin Purvey (pictured), director of mortgage distribution at Coventry Building Society, said: “Our service levels remain as strong as ever and we’re well placed to deal with high demand.
“Our call centre has dealt with enquiries as normal throughout the Covid-19 crisis and our business development managers continue to carry out their regular appointments with brokers and advisers over the phone and on Zoom. Now is the time for brokers to get in touch with their business development manager and find out how we can help them and their clients.”
Kensington, Accord and Coventry BS cut rates; Hodge scraps ERCs – round-up
Coventry for intermediaries
Coventry for intermediaries has reduced rates across its owner-occupied mortgage range, excluding 95 per cent loan to value (LTV), by up to 0.16 per cent.
For example, the fee-free two-year fixed product at 50 per cent LTV has been cut to 1.55 per cent from 1.69 per cent until 31 March 2022.
And the five-year fixed at 85 per cent LTV with a £999 product fee has been reduced from 1.89 per cent to 1.75 per cent until 31 March 2025.
The lender has also reduced rates across its entire Flexx for Term range by 0.10 per cent.
Kevin Purvey, director of mortgage distribution at Coventry Building Society, (pictured) said: “Our owner-occupied mortgages are now even more competitive.”
Kensington Mortgages has made changes to its residential and buy-to-let offerings, including its Help to Buy range.
For Help to Buy, rates are being reduced by 20 base points (bps) and 25bps on two and five-year fixes respectively.
Rates now start at 3.29 per cent for two-year fixed and 3.89 per cent for five-year fixed at 75 per cent LTV and both include free valuations and £500 cashback.
Loan sizes on the Select range have also been increased up to £2m on 80 per cent LTV, £1.5m at 85 per cent LTV and £1m to 90 per cent LTV.
Across its Buy to Let product offering, Kensington has reduced the £70,000 minimum loan size to £25,001. This includes individual landlords, limited companies, homes in multiple occupancy (HMOs) and multi-unit blocks, and those on the Property Plus product for homes with non-standard construction.
For its buy to let range, rates have been reduced at 85 per cent LTV by 0.25 per cent on two and five-year fixes, starting at 4.39 per cent and 5.09 per cent respectively.
Craig McKinlay, new business director, Kensington Mortgages, said: “These rate reductions and other product changes seek to provide borrowers and landlords increased flexibility and choice across our ranges.
“While Help to Buy may soon be ending as we know it, we want to give first-time buyers, who may otherwise have been turned away from the high-street for being too ‘complex’, the best chance of home ownership.”
Accord Mortgages has lowered rates on a selection of residential fixed rate products including its high LTV offerings.
At 90 per cent loan-to-value, reductions include a two-year fixed rate now at 2.02 per cent, down from 2.07 per cent. This product comes with a fee of £995 and is available for both house purchase and remortgage clients.
For house purchasers wanting a larger loan, there is the two-year fixed rate at 90 per cent LTV which is now 2.16 per cent, cut from 2.26 per cent. The five-year fixed at 90 per cent LTV has also seen a rate cut from 2.49 per cent to 2.40 per cent.
Both products have a £995 fee, £500 cashback, free valuation and are available up to a loan size of £600,000.
Rates on longer term products have also been reduced.
For both house purchase and remortgage clients, the updated products include a 15-year fixed rate at 75 per cent LTV at 2.77 per cent down from 2.89 per cent; a 10-year fixed rate at 75 per cent LTV at 2.29 per cent cut from 2.32 per cent, and a seven-year fixed rate at 75 per cent LTV at 2.27 per cent down from 2.30 per cent.
All these products come with a £495 fee and free valuation.
Jemma Anderson, Accord product manager, said: “It’s been a positive start to the year, so we reviewed our range to ensure we’re offering a competitive mix for brokers.”
Hodge removes ERCs
Hodge has extended its Early Repayment Promise (ERP) feature across all of its residential mortgage products, allowing customers to sell their property without any early repayment charges.
Hodge originally offered downsizing protection alongside its equity release product range and offered a version of this feature on its fixed-for-life retirement interest-only mortgage and its holiday let products.
It has now extended this protection to all its mortgages. It is also applicable for customers who want to sell a property during the term of their mortgage and redeem the mortgage loan in full.
Matt Burton (pictured), managing director of mortgages at Hodge, said: “ERPs, or downsizing guarantees as they are also called, are attractive and very popular in the equity release market and so we saw no reason not to extend this attractive proposition to the rest of our products.”
Coventry BS launches 95 per cent LTV deals; TSB and Gatehouse make BTL changes – round-up
Coventry BS launches 95 per cent LTV
Coventry for Intermediaries has launched a range of five-year fixed mortgages for borrowers with a five per cent deposit.
The 95 per cent loan to value (LTV) mortgages allow a standard valuation of up to £670 with selected products including cashback of £500. The maximum loan size for these products is £400,000 and they are available for purchase and further borrowing.
Products include a five-year fixed at 2.95 per cent with and £499 product fee. A fee-free option is available at 3.18 per cent with £500 cashback. Early repayment charges (ERCs) are payable until March 2025 for both deals.
Kevin Purvey (pictured), director of intermediaries at Coventry Building Society, said: “Demand for higher LTVs has been steadily increasing, not only from first-time buyers but also from homeowners looking to take another step up the property ladder to something more substantial.
“We feel now is the right time to better support the higher LTV market and help even more people to find their ideal home.”
Cumberland BS adds holiday let
The Cumberland Building Society has launched a two-year fixed holiday let mortgage, offered throughout the UK.
The product is available at 2.69 per cent with a maximum 60 per cent LTV or at 3.49 per cent with a maximum 75 per cent LTV, subject to criteria.
The Cumberland’s tailored holiday let lending criteria will allow it to consider cases such as occupancy restricted property and larger portfolios throughout mainland UK, and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight.
The building society will lend up to £2m on an individual transaction and up to £3m aggregate borrowing across a portfolio of properties.
Grant Seaton, senior business lending manager at The Cumberland, said: “Recently we’ve seen both push and pull factors lead to the increasing attractiveness of holiday let investment.
“It’s a niche that comes with its own challenges and quirks, and that’s why we feel it’s important to provide mortgage products that are specifically designed for holiday let investors.”
Gatehouse cuts retention application fees
Gatehouse Bank will reduce buy to let (BTL) application fees to £499 for eligible customers reaching the end of their fixed term.
The product transfer offering will have the same rates as the lender’s existing products and the rental rate – Standard Variable Rate plus one per cent – will take effect from the maturity date of the client’s existing product.
The only difference will be the reduced application fee. Additionally, brokers will receive a procuration fee for the product transfer business.
The product has no ERCs and as long as no additional finance is needed and there are no major changes to the agreement, there is no additional underwriting or revaluation of the property required.
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “The value of advice is incredibly important, especially when a client is coming to the end of their existing deal.
“We’re pleased to see that Gatehouse Bank recognises the important work advisers do to ensure their clients make the right choices when it’s time to choose a new mortgage product.”
TSB reduces BTL rates
TSB has made rate reductions of 0.20 per cent across its buy-to-let range.
These include its two-year fixed and tracker house purchase mortgages with 0-75 per cent LTV tiers, as well as two-year fixed and tracker remortgages with either a free legals option or £300 cashback.
For example, its fee-free two-year fixed deal up to 60 per cent LTV has been cut from 2.24 per cent to 2.04 per cent, the option with a £995 fee has been cut to 1.54 per cent, and the £1,955 fee product has been reduced to 1.34 per cent.
Meanwhile, its two-year tracker remortgage at 0-60 LTV with free legals and a £995 fee has been cut from 2.24 per cent to 2.04 per cent.
Nick Smith, TSB head of mortgages, said: “There is a lot of activity in the buy-to-let market at the moment, so these reductions will prove to be very attractive to either those landlords who are thinking of switching their mortgages, or those who are considering entering the market, perhaps for the first time.”
Mortgage Brain completes first Lendex transaction with Coventry
The transaction was placed by Mortgage Advice Agency who used the system for a live application with Coventry Building Society.
The Nuneaton-based mortgage brokerage put through a buy-to-let remortgage case using the platform.
An agreement in principle (AIP) was submitted, which was then converted to a full mortgage application with the submission, decision and subsequent application, all being successfully tracked.
Carly French, mortgage administrator at Mortgage Advice Agency, said: “The system was clear and very easy to follow, and will easily fit into any broker’s working day.
“I picked it instantly, having navigated it only once. We’re looking forward to incorporating Lendex into our mortgage process and the positive impact it will have on our business.”
Digitally enhancing the mortgage process
Lendex is a sourcing system which aims to secure multiple decisions in principle direct from lenders in less than 30 seconds.
It submits AIPs and full mortgage applications directly to all participating lenders’ back office systems with one login. It will provide a process to request a decision in principle and then digitally complete, submit, administer and track full mortgage applications.
Lendex is part of Mortgage Brain’s drive to digitally enhance the mortgage process and through the system, it will offer application programming interfaces on behalf of participating lenders and will be available to lenders regardless of size.
It is due for a full launch in 2020 following a pilot period with 11 lenders including Barclays, NatWest and Accord Mortgages.
Mark Lofthouse (pictured), CEO of Mortgage Brain, said: “We are delighted to have completed the first of what we anticipate to be many tens of thousands of transactions on Lendex over the next year.
“It is an important milestone and we remain on track to launch this brand new platform that will transform the decisioning and application process at no costs to advisers in 2020.”
Kevin Purvey, director of intermediaries at Coventry Building Society, added: “We are very proud to be able to facilitate the first transaction in Lendex.
“This digital gateway is a key component of our strategy to adopt and use new technologies that support intermediaries.”
Coventry for intermediaries expands offset range
The lender introduced two, five and ten-year fixed products up to 85% loan to value (LTV).
The two-year fixed product stands at 1.99%, the lowest rate offset product without a fee, at 50% LTV.
The extended range also includes a five-year fixed product at 2.29% and a ten-year fixed product standing at 2.59%, with 85% and 75% LTV respectively. Both products are offered with a £999 product fee.
Kevin Purvey, director of intermediaries (pictured), said that these fee-free products are ideal for clients looking to keep their initial costs low.
He added: “An offset isn’t just for big savers – a small amount saved regularly can make a big difference.”
TSB and Coventry cut fixed mortgage rates – roundup
TSB has also introduced new three-year fixed rates for home buyers at 85-95% Loan to Value (LTV) available via intermediaries.
The lender cut its two and five-year fixes by up to 0.35% for home buyers at up to 95% LTV, while its three-year fix up to 85% LTV has been trimmed by 0.10%.
At the same time, TSB’s two and three-year fixed for remortgages at up to 60% LTV have been cut by up to 0.15%.
Coventry for intermediaries
Coventry for intermediaries has reduced rates across its five and 10-year fixed residential and buy-to-let mortgage ranges by up to 0.10%.
Within the owner-occupier range, the lender cut its five-year fix to 1.89% from 1.94% at 50% LTV with a £999 product fee.
And at 75% LTV, its five-year fix has been reduced to 2.05% and to 2.25%, with a £999 product fee and no product fee respectively.
At 90% LTV, the lender cut its five-year fix to 2.39% from 2.45%, with a £999 product fee.
Its 10-year fix has been reduced to 2.35% from 2.39%, with 50% LTV and a £999 product fee.
Within the buy-to-let range, the lender reduced its five-year fix to 2.45% from 2.55% at 50% LTV, whilst at 65% LTV its five-year fix has been reduced to 2.55%, with a £999 product fee.
Kevin Purvey, director of intermediaries Kevin Purvey (pictured) said: “Our five and 10 year fixed owner-occupier and five year fixed buy-to-let mortgage ranges are now even more competitive, with some products offering market-leading rates.
“These products are a great option for borrowers looking for the stability and certainty of fixed mortgage payments, with a variety of LTVs and fee options for a range of brokers’ clients.”
Coventry for intermediaries provides brokers with their own telephone and field BDM
A spokesperson from Coventry for intermediaries told Mortgage Solutions that this change comes in response of brokers’ feedback to recognise the value a business development manager brings to a broker’s business.
Brokers will be able to find their BDMs with the lender’s brand new BDM finder tool on its website.
Inserting their postcodes, brokers will have a list of BDMs in their particular area with their contact details.
It has also further invested in its intermediary support teams to equip them to deal with a wider range of queries from brokers. This will be particularly helpful if a BDM isn’t available, for example when in face to face meetings.
Director of intermediaries Kevin Purvey (pictured) said: “We’re delighted to be building on our already award-winning service.
“Brokers told us that they want more BDM contact and these changes will help us to deliver just that.
“Our commitment to the intermediary sector remains as strong as ever, and we’ll continue to look for ways to offer the best service we can to brokers.”
Coventry BS reduces BTL rates
The reduced BTL rates include:
- A two year-fixed 50% loan to value (LTV) reduced from 1.69% to 1.49%, with early repayment charges (ERCs) payable until 30 April 2020 and a £1,999 product fee;
- A two year-fixed 75% LTV reduced from 2.25% to 2.05%, with ERCs also payable until 30 April 2020 and a £1,999 product fee.
Coventry’s two year-fixed products have ERCs of 2% until 30 April 2019 and 1% until 30 April 2020.
All products include a valuation of up to £700 for BTL mortgages.
Kevin Purvey, director of intermediaries at Coventry, commented: “We’re very happy to reduce rates across our BTL two year-fixed range from 50%-75% LTV.”
Coventry BS introduces residential retention proc fee
In February the mutual announced its buy-to-let product transfer proc fee would go live in April with a residential proc fee to be introduced by the end of the year.
The lender confirmed this will be introduced for all applications received from 24 November.
Coventry BS director of intermediaries Kevin Purvey (pictured) said: “We committed to introducing proc fees for all product transfers during 2017 and I’m delighted that we’re delivering on that.
“Product transfers are becoming an ever increasing part of the market and we recognise the work that intermediaries have to undertake in order to give advice.
“And our open transfer policy means that brokers’ clients who already have a mortgage with us can apply to transfer to any mortgage from our current range on the same terms as new clients.
Coventry Building Society reduces five-year fix rates
From today the adviser arm of Coventry Building Society will be offering the following deals will be available:
• 2.69% (reduced from 2.85%), Early Repayment Charges (ERCs) payable to 31 December 2022 with a £999 product fee.
• 3.05% (reduced from 3.19%), ERCs payable to 31 December 2022 and no fee
• 3.05% (reduced from 3.19%), no ERCs with a £499 product fee.
Kevin Purvey, director of intermediaries, said: “We’re excited to reduce rates across our 90% LTV five-year fixed range. With rates starting from 2.69%, borrowers can take advantage of the certainty of a fixed mortgage payment for the long term. In addition, all of our products are application fee free and include a valuation of up to £670 for residential mortgages. We also offer £500 cash back on fixed residential completions for first time buyers and home movers and our remortgage transfer service for remortgages.”