Nationwide cuts select rates across higher LTVs
The largest cuts were applied to its first-time buyer range, with its two-year fixed rate at 85 per cent LTV going down by 0.17 per cent to 1.62 per cent. It comes with a £1,499 fee.
Its two-year fixed rate at 95 per cent LTV, also with a £1,499 fee, has been reduced by 0.05 per cent to 2.94 per cent, whilst its three-year fixed rate at 90 per cent LTV with a £999 fee has gone down by 0.1 per cent to 2.02 per cent.
For new customers moving home, the lender has cut rates by up to 0.11 per cent, including its two-year fixed rate at 85 per cent LTV, which has decreased by 0.05 per cent to 1.57 per cent.
Its three-year fixed rate at 90 per cent LTV has also fallen by 0.1 per cent to 1.94 per cent. Both come with a £1,499 fee.
Its two-year fixed rate at 95 per cent LTV has decreased by 0.1 per cent to 1.94 per cent. It is subject to a £999 fee.
Nationwide is also cutting rates by up to 0.11 per cent for existing members moving home for two and three-year fixed rates products between 75 per cent and 95 per cent LTV.
In addition, rate cuts of 0.11 per cent are being applied to some further advance, family deposit mortgage and switcher rates.
Henry Jordan, Nationwide’s director of mortgages, said: “By improving the competitiveness of our two and three-year fixed rate products, we are aiming to support those mortgage customers with smaller deposits who are looking for payment security.”
HSBC cuts rates and adds sub-one per cent deals to range
The lender has decreased the rate on its five-year fixed rate remortgage at 60 per cent loan to value (LTV) from 0.99 per cent to 0.94 per cent. It has a fee of £999.
Its two-year fixed rate at 75 per cent LTV has fallen from 1.04 per cent to 0.99 per cent. It comes with a £999 fee.
HSBC brought out several sub-one per cent deals, including a two-year fixed rate at 60 per cent LTV at 0.94 per cent in July. It then brought out a 0.89 per cent deal in August, also a two-year fixed at 60 per cent LTV, which is its lowest ever fixed rate product.
In its remortgage range, the lender has also cut its no-fee two-year fixed rate at 75 per cent LTV by 1.39 per cent to 1.29 per cent. Its five-year fixed rate at 75 per cent LTV with a £999 fee has been cut from 1.19 per cent to 1.14 per cent.
On the purchase side, its two-year fixed rate at 85 per cent LTV has gone from 1.74 per cent to 1.59 per cent. Its two-year fixed rate at 90 per cent LTV has fallen from 1.99 per cent to 1.94 per cent. Both come with a £999 fee.
HSBC UK’s head of buying a home, Michelle Andrews, said: “Buying a home or remortgaging with us has never been cheaper. These cuts will make getting on to or moving up the property ladder more affordable, possibly being the difference in a home buyer being able to afford the property of their dreams.”
Castle Trust Bank removes loading for HMO and holiday lets and cuts rates
The lender has removed loading, where an increased cost or additional rate is applied to certain products, from its HMO and holiday let range.
Castle Trust Bank has also cut rates across its product offering, with rates now starting from 3.82 per cent.
It has also brought out a buy-to-let (BTL) exclusive at 3.95 per cent up to 70 per cent loan to value (LTV). The product is available via Brightstar Financial, Brilliant Solutions, Commercial Trust, Crystal Specialist Finance, First 4 Bridging, SPF, Sirius, Synergy Commercial, Watts Commercial and Vibe Financial Services.
The lender is continuing its exclusive five-year fixed rate product, which is priced at 4.5 per cent and comes with early repayment charges for the first two years.
This product is available through Brightstar Financial, Commercial Trust, Complete FS, Crystal Specialist Finance, First 4 Bridging, Positive Lending, Rangewell, SPF, Sirius, Synergy Commercial, The BTL Broker, Watts Commercial, Vibe Financial Services and Yellowstone Finance.
Castle Trust Bank’s sales director Rob Oliver said: “It’s now more than a year since we became a bank, and one of the many advantages is that it gives us greater flexibility in our product development and pricing.
“We have already seen the popularity of our HMO, holiday let and bridge to let products amongst brokers and we hope to make them even more attractive to a wider group of customers, with even keener pricing.”
He added that the lender continued to support its distribution partnership with the BTL exclusive and the extension of its five-year fixed rate exclusive.
Average mortgage rates record largest monthly decline since May last year – Moneyfacts
According to Moneyfacts, the average two-year fixed rate dropped by 0.14 per cent in September to 2.38 per cent, whilst the average five-year fixed rate fell by 0.12 per cent to 2.63 per cent.
This was on a par with the largest month-on-month reductions which took place from April to May last year, where two-year fixed rates fell by 0.27 per cent and five-year fixed rate dropped by 0.31 per cent.
This was also the lowest each average rate has been in 11 months, with rates of 2.38 per cent and 2.62 per cent recorded in October for a two and five-year fixed respectively.
Additionally, the number of available mortgages nearly doubled compared to the same period last year, with total products coming to 4,812.
The largest product increase was recorded at the 90 per cent loan to value (LTV) tier, rising from 62 in September last year to 579 this month. This is still below 2019 levels, which came to 774.
Products in the 95 per cent LTV tier also grew dramatically from 14 in September last year to 283 this month. This compares to the same period in 2019 when products numbered 380.
Products in the 60 per cent LTV tier increased slightly from last year, rising from 441 in September last year to 587 this month. This is roughly in line with 2019 at 580.
Rates across all tiers fell, with the 95 per cent LTV tier recording the largest decreases with average two-year fixed rate falling from 4.48 per cent in September last year to 3.57 per cent this year. The average five-year fixed at this tier declined from 4.02 per cent to 3.83 per cent annually.
Average rates for two-year fixed rate at 90 per cent LTV reduced from 3.32 per cent in September last year to 2.85 per cent this year. Five-year fixed rates at the same tier have decreased from 3.5 per cent to 3.23 per cent in the same period.
At 60 per cent LTV, the average two-year fixed rate was pegged at 1.51 per cent, down from 1.77 per cent last year. The average five-year fixed at 60 per cent LTV was 2.01 per cent in September last year and now 1.71 per cent.
Moneyfacts’ spokesperson Eleanor Williams said September was the eleventh consecutive month of growth in the number of mortgage products. She also said options were at their highest since May last year.
She added that significant expansion in the 90 and 95 per cent LTV brackets had improved availability for borrowers, and the lower rates indicated lenders may be “competing for business in this area”.
Williams said: “It is unknown whether borrowing levels will subdue in the months ahead, accounting for a seasonal slowdown and the fact that many consumers are returning to work or taking a much-needed break, but there seems to be no signs of lenders easing off the rate war.
“Those looking to move will need to act quickly in their property search and those looking to remortgage could save a significant sum by taking advantage of a low-rate deal. Lenders are keen to take on new business and due to the market volatility, borrowers would be wise to seek independent advice to navigate the growing choice to ensure they find the most appropriate mortgage package for their circumstances.”
TSB reduces first-time buyer, purchase and buy-to-let rates; Coventry cuts resi rates – round-up
On the BTL side, reductions were made to its two-year fixed rate, five-year fixed rate, 10-year fixed rate, tracker rate and remortgage products.
The largest reduction was made to its 10-year fixed rate between 60 and 75 per cent loan to value (LTV), which has fallen by 0.55 per cent to 2.29 per cent. It has a £995 fee.
Other significant reductions were made to its two-year fixed rate range with its fee-free product between 70 and 75 per cent LTV decreasing by 0.45 per cent to 2.09 per cent. Its £995 fee paying equivalent also fell by 0.45 per cent to 1.69 per cent.
In its first-time buyer range, the lender has cut two-year fixed rates between 80 per cent and 95 per cent LTV by up to 0.2 per cent.
This includes its two-year fixed rate between 80 and 85 per cent LTV which has fallen from 1.94 per cent to 1.74 per cent, along with its two-year fixed rate between 85 and 90 per cent LTV which has gone from 2.29 per cent to 2.09 per cent.
The products are subject to a £995 fee.
The lender has also cut a trio of its two-year fixed rate house purchase products by 0.2 per cent, with its two-year fixed rate between 80 and 85 per cent LTV going from 1.94 per cent to 1.74 per cent.
Coventry cuts resi rates by up to 0.1 per cent
Coventry has reduced rates on residential mortgage products between 50 per cent and 75 per cent LTV by 0.1 per cent.
Reductions have been applied to 28 products in total across the mutual’s standard residential, product transfer and further advance ranges.
Highlights of the cuts include its two-year fixed rate at 65 per cent LTV, which has been reduced from 1.29 per cent to 1.19 per cent.
The mutual’s five-year fixed rate at 75 per cent LTV has fallen from 1.55 per cent to 1.45 per cent.
Both are available for purchase or remortgage and have no product fee. The products are also subject to early repayment charges (ERCs) over the fixed rate period.
Jonathan Stinton, Coventry Building Society’s intermediary relationships head, said: “Brokers and their clients have a wide range of products currently available to them, offering a variety of choices for both rates and product features that can match more closely with the needs of borrowers.
“Our residential mortgages are now even more competitive and will appeal to a broad range of borrowers, including those whose mortgage deals are due to end in the next couple of months.”
Molo cuts buy-to-let rates
The cuts cover its products for both individual and limited company borrowers, and come ahead of its planned move into residential mortgage deals for both first-time buyers and home movers.
The rates include two-year fixed rates for individual borrowers starting at 2.24 per cent at 65 per cent loan to value (LTV), and five-year fixed rate deals starting at 2.29 per cent at the same LTV band.
Meanwhile rates for limited company borrowers on a two-year fixed rate start at 2.9 per cent, and for five-year fixed rates prices start at 3.1 per cent.
Francesca Carlesi, chief executive officer at Molo (pictured), noted that the mortgage market has never been so competitive.
She continued: “Lowering our prices gives landlords excellent options, whether they’re purchasing a property as an individual or a limited company.
“Our new rates, combined with an entirely digital approach for getting a mortgage, give investors more flexibility and allow them to go through the borrowing process at speed while saving money with Molo.”
The Cumberland launches lowest ever rate
The deal, which is a cut of 0.25 percentage points, is available on a two-year variable discount with a loan to value of 60 per cent loan to value (LTV).
The mutual has also launched a two-year fixed rate mortgage at the same LTV with a rate of 0.88 per cent.
In June the lender launched a two-year fixed rate remortgage with a rate of 0.98 per cent, which was the first time it has offered a sub-one per cent residential mortgage product.
It has also cut select remortgage products, with its two-year fixed rate at 85 per cent LTV dropping by 0.53 percentage points to 1.78 per cent.
Its two-year discounted mortgage has been reduced by 0.75 percentage points to 1.73 per cent.
Lewis Benson, area manager at The Cumberland, said that the rates were likely to be the lowest it had ever offered, and that this cut would give the best deal to members.
He said: “I can’t emphasise enough how brilliant these rates are. This is a really good time for anybody who has a mortgage to spend some time with a mortgage adviser and see if you can get a better deal.”
He added that there was still pent-up demand due to limited housing stock so the housing market was unlikely to slow down in the coming months.
Foundation Home Loans and TML launch limited edition BTL products
Foundation Home Loans has launched a fee-free limited edition owner-occupier remortgage product, along with a limited edition buy-to-let (BTL) deal.
The remortgage product is available up to 75 per loan to value (LTV), with its two-year version priced at 3.19 per cent and its five-year pegged at 3.49 per cent.
It has a minimum loan size of £200,00 and is available on a capital and interest basis. It has no product or application fees and comes with a standard valuation.
The limited edition BTL products are also available up to 75 per cent LTV and are eligible for both purchase and remortgage. Individual and limited company landlords are eligible.
The two-year fixed rate is priced at 2.94 per cent, while its five-year fixed rate stands at 3.14 per cent. It has a flat fee of £1.995 and there is no minimum loan size.
George Gee, commercial director at Foundation Home Loans, said that borrower interest in products with lower upfront costs was growing, which was why it launched its remortgage product.
He added: “With highly competitive interest rates we believe these new limited editions will provide advisers with a set of options to fit a number of client demographics.
“The flat fee option for landlords also means these BTL limited editions are highly competitive on total cost and will interest landlords who specifically want larger loan amounts.”
The Mortgage Lender adds HMOs to limited edition BTL products
Elsewhere, The Mortgage Lender has added houses of multiple occupation (HMO) and multi-unit blocks (MUBs) products to its limited edition range.
The five-year fixed rate for HMOs and MUBs is available up to 75 per cent LTV and has an initial rate of 3.58 per cent.
The lender has also cut the rate for its limited edition five-year fixed rate aimed at individual and limited company borrowers to 3.2 per cent. This is a fall of 0.11 percentage points.
The completion fee for its limited edition range has fallen to one per cent, and all come with standard valuation fees and a £150 application fee.
Steve Griffiths, sales and product director at The Mortgage Lender, said: “Our limited edition BTL products are designed to make it easier for brokers and landlords to refinance and add to their portfolios.
“Adding HMO and MUB properties to the mix gives landlords looking to purchase or remortgage those buildings access to competitive five-year rates and reduced completion fees, bringing down the overall cost of refinancing or purchasing while allowing them to leverage by borrowing up to 75 per cent LTV.”
Virgin Money launches BTL and greener shared ownership products and cuts rates
The greener shared ownership mortgage is a two-year fixed rate with an interest rate of 2.24 per cent and comes with a £995 fee.
The exclusive buy-to-let products include a two-year fixed rate at 65 per cent LTV at 1.46 per cent, and a five-year fixed rate at 1.67 per cent. Both come with an £895 fee.
The lender has cut rates on select residential products between 85 and 95 per cent LTV by as much as 0.27 percentage points.
Its two-year fixed rate fee-saver at 85 per cent LTV will now have a rate of 1.89 per cent, down from 2.16 per cent, whilst its equivalent five-year fixed rate has fallen by 0.14 percentage points to 2.29 per cent.
MIts five-year fixed rate at 90 per cent LTV has been reduced from 2.78 per cent to 2.62 per cent and comes with a £995 fee, while its two-year fixed rate fee-saver at 95 per cent LTV has fallen by 0.16 per cent to 3.12 per cent.
In Virgin’s core buy-to-let range select products have fallen by 0.3 percentage points, with its two-year fixed rate moving from 1.53 per cent to 1.35 per cent. It comes with a product fee of £1,995.
The lender also confirmed rates for select exclusive purchase deals with £1,000 cashback would be cut, with its two-year fixed rate at 95 per cent LTV standing at 1.63 per cent, down from 1.83 per cent, whilst its equivalent five-year fixed rate has decreased by 0.14 percentage points to 2.11 per cent. Both come with a £1,495 fee.
Landbay expands larger loan offering and Zephyr Homelands cuts BTL rates
The new products cover standard property, new build, houses in multiple occupation (HMO), multi-unit freehold blocks (MUFB)s and trading companies, with loan sizes ranging from £1m to £1.5m depending on the product.
It includes a standard property deal available up to 75 per cent loan to value (LTV), with a loan size of £1.5m and a rate of 3.24 per cent.
For a new-build standard property, there is a five-year fixed rate at 65 per cent LTV available at 3.24 per cent, with a maximum loan size of £1.5m. This falls to £1m at 75 per cent LTV.
The lender has also brought in a small HMO and MUFB five-year fixed rate at 75 per cent LTV, which has a maximum loan size of £1.5m and a rate of 3.59 per cent.
Landbay has also increased its maximum loan size from £1m to £1.5m on three of its existing products.
Paul Brett (pictured), Landbay’s managing director, said: “We are seeing more landlords wanting larger loans particularly for investment in HMOs and MUFBs. They tend to be professional landlords with growing portfolios who want to invest in larger properties.
“There has also been an increase in trading limited companies investing in HMO and MUFBs. This type of accommodation attracts higher yields for landlords and even if there are vacancies within the property there is always income from the other tenants.”
Zephyr Homeloans cuts BTL rates by 0.2 per cent
Specialist buy-to-let (BTL) lender, Zephyr Homeloans, has cut rates by around 0.2 per cent across its standard BTL mortgages, as well as select products in its HMOs and MUFBs range.
The lender has reduced the rate for its standard BTL two-year fixed rate from 2.84 per cent to 2.64 per cent, while its five-year fixed rate has fallen from 3.04 per cent to 2.89 per cent. This is available for individuals and limited companies at 65 per cent LTV.
Zephyr Homeloans has also reduced rates for its HMOs, MUFBs, specialist new builds and flats above commercial property products, with rates starting from 2.99 per cent.
Paul Fryers, managing director of Zephyr Homeloans, said: “Our new rates may appeal particularly to landlords who may have held back from increasing their portfolios last year but who are now looking to invest.”