TSB ups rates; Suffolk BS slashes expat resi rates – round-up
The lender will up two-year fixed first-time buyer and home-mover products up to 90 per cent LTV by up to 0.30 per cent. Pricing begins from 4.69 per cent.
Five-year fixed first-time buyer and home-mover rates will increase by around 0.3 per cent. Rates start from 4.49 per cent.
Two-year fixed remortgage up to 75 per cent LTV will rise by 0.2 per cent along with five-year fixed remortgage rates.
For two-year fixed, rates start from 4.84 per cent and five-year fixed rates begin from 4.44 per cent.
Suffolk BS cuts expat residential mortgage rates
Suffolk Building Society has lowered expat residential mortgage rates by up to 0.55 per cent and added lower-rate high deals.
Its two-year fixed expat residential rate has fallen from 6.09 per cent to 5.59 per cent. It has a maximum loan size of £1m, and this product has a £199 application fee and a £999 completion fee.
The firm’s expat residential two-year fixed rate large loan has fallen to 5.59 per cent with a maximum loan of £2m. The application fee is £199 and the completion fee is 0.2 per cent of the loan amount.
Its two-year interest-only expat residential rate has decreased from 6.44 per cent to 5.89 per cent. The product has a maximum loan size of £500,000, an application fee of £199 and a completion fee of £999.
The deals are available up to 80 per cent loan to value (LTV) and overpayments of up to 50 per cent of the original loan amount.
The firm has brought out a two-year buy-to-let (BTL) fixed rate of 4.79 per cent and expat BTL two-year fixed rate of 5.29 per cent. It has a three per cent completion fee, which will help landlords up their maximum loan available when using the stressed interest coverage ratio.
The application fee is £199, overpayments are up to 50 per cent of the original loan amount and loans go up to 80 per cent LTV, with a maximum loan size of £1m.
Charlotte Grimshaw, head of mortgages at Suffolk Building Society, said: “We’re pleased to announce we’re reducing our rates across our expat ranges, further supporting the new currencies we’ve recently introduced for expat residential.
“While mortgage rates remain higher than previous years, we understand that achieving their desired loan amount has become an issue for many BTL landlords. By offering a lower initial rate with a higher fee, we’re providing an alternative option for those landlords who might prefer to pay a higher fee for a lower monthly mortgage payment.”
The change comes off the back of a number of criteria enhancements by the lender earlier this week.
Glenhawk overhauls range and promotes Pritchard to sales MD
Glenhawk said that it would reduce rates across the board, with pricing on unregulated deals beginning from 0.83 per cent.
The lender has added a mixed residential product for mixed used assets with over half residential use to complement its existing mixed commercial product.
The firm has upped the loan to value (LTV) on its regulated product to 75 per cent and increased the maximum loan size to £2m.
Glenhawk has also removed the exit fee in its heavy refurbishment product and reopened for large loans on mixed, residential and multi-unit property valued up to £10m.
2024 will be a ‘massive year’ for Glenhawk
Pritchard will take on the role of managing director of sales and will oversee the ongoing product revamp as well as launching several products and initiatives in the coming months.
He will also ensure that the “necessary infrastructure and internal and external processes are in place to maintain the highest standards of client service”.
Pritchard will continue to lead the lender’s business development management team (BDM) and the company said that as sales director he had overseen a 60 per cent increase in its loan book and 53 per cent growth in its introducer network.
He has been with the firm since 2021 and before that worked at Precise Mortgages for around seven years, initially as national sales manager and then head of sales.
Before that he worked at Principality Building Society for nearly six years, first as a regulated sales trainer and then as BDM and interim head of intermediary sales.
Guy Harrington, CEO of Glenhawk, added: “This well-deserved promotion comes ahead of what is going to be a massive year for Glenhawk. Having doubled our fund capacity, we can accelerate our lending ambitions and continue to innovate in response to client demand, including moving into more niche products and refining our green lending strategy.”
Pritchard added: “Our foot is firmly on the accelerator, and this overhaul of our product range is merely a prelude to what is gearing up to be a game-changing year for the business.
“With rates stabilising, more investors are looking to deploy capital and unlock value from the UK’s resilient residential market and we have reacted quickly, with the changes made having already been incredibly well received.”
Virgin Money improves affordability; Hodge makes holiday let changes – round-up
Virgin Money said that the extra amount would depend on individual customer circumstances.
The lender has made several moves to improve affordability, removing its interest-only cap for loan to income (LTI), which previously stood at 4.49 times income.
The company has also changed affordability by extending the maximum mortgage term for all residential mortgages to 40 years, up from 35 years before. This will allow more customers to borrow up to a maximum five-and-a-half times LTI cap.
Hodge cuts holiday let rates and improves criteria
Hodge said it has lowered the majority of its holiday let rates, with pricing beginning from 6.08 per cent.
Its two-year fixed rate at 75 per cent LTV with a £995 fee is 6.28 per cent. With a £1,495 fee, it is 6.08 per cent, and with a £1,995 fee, the pricing begins at 5.98 per cent.
The lender’s five-year fixed rate with no fee is 6.2 per cent, £995-fee version is 6.05 per cent, £1,495-fee version is 5.85 per cent, and with a £1,995 fee it is 5.75 per cent.
The lender’s five-year stress rate has moved to pay rate, and its pound-for-pound stress rate is the maximum of five-and-a-half per cent or the pay rate plus one per cent.
Debt consolidation is now available up to 75 per cent loan to value (LTV) and the maximum loan size of £1.5m available up to 75 per cent LTV.
Properties above and adjacent to commercial are considered, with annexes and two-kitchen properties now under consideration at application.
Top 10 most read mortgage broker stories this week – 09/02/2024
The lender is soft launching offering trail-fees and no early repayment charge (ERC) fixed rates of five, seven, 10, 12 and 15 years, with plans to expand its distribution in the coming year.
Legal and General Mortgage Services revamping its distribution team with promotions and the hire of Greg Cunnington also piqued readers’ interest.
The mortgage price war ranked highly in most read, along with commentary on mortgage fraud and automation in the mortgage industry.
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Average mortgage rates continue to slide – Rightmove
According to Rightmove, the average five-year fixed mortgage rate is now 4.64 per cent, down from 4.77 per cent a year ago.
The average two-year fixed mortgage rate stands at 4.97 per cent, a decrease from 5.10 per cent a year ago.
At 60 per cent LTV, the average two-year fixed rate is 4.41 per cent, with the lowest rate at 4.17 per cent. This is down from an average rate of 4.73 per cent a year ago.
Its average five-year fixed rate is 4.1 per cent, and the bottom-most rate is 3.88 per cent. The average five-year fixed rate a year ago is 4.41 per cent.
Going up to 75 per cent LTV, the average two-year fixed rate is 4.8 per cent and the lowest rate is 4.36 per cent. The average rate a year ago was 4.89 per cent.
The average five-year fixed rate at the same LTV tier is 4.55 per cent, and the cheapest rate is 4.11 per cent. The average rate a year ago stood at 4.55 per cent.
At 85 per cent LTV, the average two-year fixed rate is 4.96 per cent and the lowest rate is 4.57 per cent. This is down from 5.12 per cent a year ago.
The average five-year fixed rate at 85 per cent LTV is 4.58 per cent and the bottom-most rate is 4.13 per cent. The average rate last year at this LTV tier was 4.79 per cent.
Within the 90 per cent LTV tier, the average two-year fixed rate is 5.19 per cent, and the cheapest rate is 4.84 per cent. The average rate a year ago was 5.51 per cent.
The average five-year fixed rate is 4.74 per cent and the cheapest rate is 4.39 per cent. The average rate a year ago was pegged at 5.02 per cent.
Going up to 95 per cent LTV, the average two-year fixed rate is 5.59 per cent, the bottom-most rate is 5.15 per cent. The average rate last year was 5.64 per cent.
The average five-year fixed rate at the same LTV is 5.25 per cent and the lowest rate is 4.84 per cent. The average rate a year ago stood at 5.28 per cent.
Leeds Building Society cuts resi, shared ownership and Reach rates
As an example, its residential no-fee five-year fixed rate at 95 per cent loan to value (LTV) has fallen from 5.08 per cent to 4.93 per cent.
Leeds Building Society’s shared ownership no-fee two-year fixed rate up to 90 per cent borrower share has gone down from 5.19 per cent to 5.14 per cent.
The above deals come with free standard valuation, tapered early repayment charges (ERCs) and 10 per cent penalty-free capital over-repayment allowed each year.
Jonathan Thompson, senior products and pricing manager at Leeds Building Society, said: “Our purpose is to put homeownership within reach of more people, and the changes we’re making on our mortgage rates will enable more people to take their first step onto, or next step up, the property ladder.
“Throughout January, we saw a six per cent increase in applications by first-time buyers versus the same month last year, which suggests that consumer confidence is increasing.
“We are particularly pleased to be able to offer our members even better value on our shared ownership mortgage range, a tenure that we see as a crucial part of the housing mix and a vital route for many aspirational homeowners to get onto the property ladder.”
The lender added that, in the first month of the year, it had seen the most applications since its previous record in March 2023, and it was “preparing itself for a busy year ahead”.
In January, Leeds Building Society CEO Richard Fearon said that the mortgage price war had become more “visible” at the start of the year.
It is the third time that the lender has lowered rates this year, with the firm cutting residential, shared ownership and buy-to-let (BTL) rates at the start of the year.
Leeds Building Society went on to lower residential and shared ownership rates near the end of the month, along with Reach mortgages.
Santander lowers purchase rates by up to 0.2 per cent
On the two-year fixed rate side, Santander has cut its fixed rate residential purchase deal at 60 per cent LTV from 4.25 per cent to 4.2 per cent.
Its two-year fixed rate at 75 per cent LTV has dropped from 4.35 per cent to 4.3 per cent.
The lender’s two-year fixed rate at 90 per cent LTV has gone down from 4.94 per cent to 4.89 per cent.
Santander has lowered its five-year fixed rate at 60 per cent LTV from 4.04 per cent to 3.94 per cent.
Its five-year fixed rate at 75 per cent LTV has fallen from 4.24 per cent to 4.14 per cent and at 90 per cent LTV the decrease is from 4.84 per cent to 4.64 per cent.
All the above products come with a £999 fee.
Santander is the latest high street lender to change rates, with HSBC lowering select residential and buy-to-let rates by up to 0.45 per cent yesterday. The lender also increased some rates slightly.
Last week, Halifax lowered select homebuyer deals but upped other rates, such as select remortgage, product transfer and further advance deals.
The latest financial results from high street lenders, with the latest so far including Virgin Money and TSB, indicate that firms are feeling more confident about the outlook for the market, with both saying they expect an uptick in activity and falls in pricing.
HSBC cuts resi and BTL rates by up to 0.45 per cent
HSBC said the residential and BTL changes come into force from today, with the full list of changes available here.
Within its residential purchase and homemover range, its five-year fixed rate at 60 per cent loan to value (LTV) with a £999 fee has fallen by 0.25 per cent to 3.99 per cent.
Its three-year fixed rate with no fee at 60 per cent LTV has gone down by 0.35 per cent to 4.59 per cent, and the 80 per cent LTV has fallen by 0.05 per cent to 5.09 per cent.
Within the residential remortgage range, its five-year fixed rate at 60 per cent LTV with a £999 fee has increased by 0.05 per cent to 3.99 per cent.
The lender’s 10-year fixed rate at 75 per cent LTV with no fee has increased by 0.4 per cent to 4.79 per cent.
In its first-time buyer residential range, its five-year fixed rate at 60 per cent LTV has been cut by 0.25 per cent to 3.99 per cent, and its three-year fixed rate at 80 per cent LTV with £350 cashback has decreased by 0.04 per cent to 4.74 per cent. Both come with a £999 fee.
Within its BTL range, its two-year fixed rate at 75 per cent LTV with £1,999 fee has fallen by 0.45 per cent to 4.44 per cent, and its five-year fixed rate with no fee at 60 per cent LTV has been cut by 0.41 per cent to 4.38 per cent.
An HSBC UK spokesperson said: “There are a number of factors that are taken into account when setting mortgage rates. Over recent months, we have continually reduced hundreds of mortgage rates, in addition to cutting the rates on over 50 residential mortgages by up to 0.35 per cent today. We have also cut dozens of BTL rates today by up to 0.45 per cent.
“However, there have also been increases this week to residential mortgages. We continue to keep our rates under review and we are pleased to have maintained our sub-four per cent offers on our residential ranges.”
HSBC has lowered rates twice earlier this year, including at the start of the year and midway through January, and it has increased the maximum LTV for its part and part mortgage loan.
Halifax cuts homebuyer deals but ups other rates; The Cumberland slashes rates – round-up
The changes to mortgage rates at Halifax will come into force from tomorrow.
For homebuyer products, which include new build and affordable housing deals, there will be cuts of up to 0.59 per cent.
Its two-year fixed rate at 90 per cent loan to value (LTV) has gone down by 0.59 per cent to 4.84 per cent. At 95 per cent LTV, the rate fell by 0.31 per cent to 5.2 per cent.
The lender’s first-time buyer five-year fixed rate at 90 per cent LTV has been cut by 0.53 per cent to 4.44 per cent.
Within the remortgage range at Halifax, which covers large loans and affordable housing deals, two-year fixed rates up to 60 per cent LTV will go up by 0.12 per cent, and at 75 per cent LTV, prices will increase by 0.02 per cent.
The same changes have been made to its product transfer and further advance products.
The latest changes follow Halifax slashing select mortgage rates in January.
The Cumberland BS cuts rates by up to 0.5 per cent
The Cumberland Building Society (BS) has lowered fixed rates by up to 0.5 per cent, with pricing starting from 4.26 per cent for a two-year fixed rate and 3.93 per cent for a five-year fixed rate.
The lender said that the cuts were “welcome news for the large number of homeowners nationally whose current mortgage deal is due to end”.
Jack Green, mortgage hub manager at the Cumberland BS, said: “We’ve come across remortgage customers whose payments have increased by hundreds of pounds or, in some cases, more than £1,000 per month.
“We want to support our customers to keep their monthly payments as low as possible. Our new fixed rate products could help them achieve this.”
He added: “Remember, you have options. You don’t have to stay with your existing lender. Find out when your deal ends and speak to an adviser in plenty of time or shop around. Don’t leave it to the last minute, or you could end up on your lender’s standard variable rate (SVR), which means you’ll be paying more than you need to.”
Top 10 most read mortgage broker stories this week – 02/02/2024
Continued rate cuts by major lenders like Halifax, Natwest and Barclays also piqued readers’ interest, along with a report from Cifas that one in six will commit mortgage fraud to get a deal.
Santander’s results for 2023 proved popular with readers, with key highlights including gross mortgage lending coming to £13.1bn, its mortgage book coming to £175.2bn and £39.3bn worth of mortgage on its book due to refinance.
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