Newcastle BS’ gross mortgage lending stays stable at £1.1bn in 2023

Newcastle BS’ gross mortgage lending stays stable at £1.1bn in 2023

According to the latest financial results from Newcastle Building Society, its net core residential lending came to £575m, which is down from £586m in 2022.

The mutual’s profit before the tax came to £29.1m, which is down from £32.6m in 2022.

The lender said that the average standard variable rate (SVR) for mortgages is 1.24 per cent lower than the market average, which it says saves the SVR borrowers over £2.3m in interest payments compared to the market average.

Newcastle Building Society confirmed that, following the merger with Manchester Building Society, it welcomed Manchester’s customers and colleagues to the business.

The number of colleagues in 2023 rose to 260 during the year, which the mutual said was “creating new job opportunities for the region”.

Andrew Haigh (pictured), chief executive of Newcastle Building Society, said: “I’m proud that in a difficult year, as a society, we continued to deliver for our members, our communities and our colleagues.

“We demonstrated the character and resilience required to navigate uncertain and fast-changing market conditions and would like to thank everyone who has played a role in 2023.”

He continued: “Not only were we able to grow the business, including the merger with Manchester Building Society, we attracted new customers, supported members where needed, offered good value and continued to invest in the future of the organisation.

“As ever, I am enormously grateful for the tireless contribution of colleagues from across the group and the ongoing support of our members, our partners and our communities.

“These remain challenging times, but I believe the society is well-placed to respond and to achieve new levels of performance through our ambition and continued investment and that our ever-greater focus on delivering value to members will amplify the positive impact we make in our communities.”

TML adds large loan and interest-only options to resi range

TML adds large loan and interest-only options to resi range

The lender’s large loan offering will lend up to £1m for the 80 per cent loan to value (LTV) product and £1.25m for 75 per cent LTV deals.

This is available in TML’s RL0 and RL1 large loan product range. The former does not allow arrears county court judgement (CCJ), defaults, individual voluntary arrangement (IVA), repossession, debt management plan or payday loans, whereas RL1 permits a limited number of unsecured arrears, bankruptcy, IVA or payday loans.

The loan-to-income (LTI) ratio has increased to up to five times income for loans over £1m on a repayment basis, subject to affordability assessments.

TML’s interest-only criteria will be offered across its large loan product RL0 and RL1 range for loans over £500,000 up to 75 per cent LTV and part and part options up to 85 per cent LTV.

Repayment options accepted include sale of mortgaged property, equity in other UK property owned by the customer as well as the current values of savings and simple investment vehicles.

Steve Griffiths (pictured), chief commercial officer at TML, said: “We are pleased to bring to market these larger loan products, as well as the option for customers to have some or all of the loan on interest-only if that best suits their needs and lifestyle.

“We’ve worked closely with our intermediary and distribution partners in developing our large loan and interest-only proposition. Our aim is to offer flexibility of choice with how customers choose to repay their mortgage depending on the circumstances and, while every customer’s situation is different, we have a range of tailored options that can help meet the needs of many.

“With house prices expected to return to rising after the reductions seen last year, and affordability continuing to provide challenges for customers and brokers alike, it’s more important than ever to speak to an adviser to understand how best to maximise borrowing potential for the self-employed or those with complex income structures. And that is why we are committed to helping brokers and their clients with solutions that meet their individual needs.”

Andrew Montlake, managing director of Coreco Mortgage Brokers, added: “In an ever-changing market, it’s key to adapt, which is why it’s encouraging to see lenders develop a wider range of products to support customers with a diverse range of needs.

“TML’s new product offerings are an example of a lender striving to best assist brokers and their clients by offering innovative solutions and being versatile to the market demands.”

TML has been broadening its proposition, launching into the shared ownership market and restructuring its residential range to improve its specialist offering.

TSB ups rates; LendInvest adds high-LTV product – round-up

TSB ups rates; LendInvest adds high-LTV product – round-up

On the residential side, TSB has increased two-year fixed first-time buyer and home-mover deals at 80 to 85 per cent loan to value (LTV) and 85 to 90 per cent LTV have gone up by 0.1 per cent.

Five-year fixed first-time buyer and home-mover rates between 75 and 90 per cent LTV have increased by 0.1 per cent.

Within its product transfer range, residential five-year fixed rates up to 75 per cent LTV will go up by 0.15 per cent.

Residential five-year fixed additional borrowing rates up to 75 per cent LTV will increase by 0.15 per cent.

 

LendInvest brings out two-year fixed high-LTV deals for first-time buyers

LendInvest will now offer a 90 per cent LTV two-year fixed rate, along with improved loan to income (LTI) of up to 6.49 times income.

Borrowers will also be offered the choice of product fee to the total loan amount, improving affordability.

The lender recently launched two bridging loan products, aimed at those looking to acquire and flip residential homes for a profit.

Paula Mercer, head of sales at LendInvest Mortgages, said: “Recognising the diverse needs of homebuyers, especially in a challenging economic environment, we’ve tailored our products to enhance affordability from the outset.

“Today’s product launch benefits all of our homeowner customers, but especially first-time buyers with smaller deposits. We continue to evaluate and develop our comprehensive range with the goal of providing meaningful solutions for all homeowners.”

TSB ups select rates; Virgin Money adds deals – round-up

TSB ups select rates; Virgin Money adds deals – round-up

On the residential side, its two- and five-year fixed first-time buyer and house purchase deals between 85 and 90 per cent loan to value (LTV) with a £995 fee have gone up by 0.1 per cent.

Two-year fixed remortgage deals up to 75 per cent LTV have increased by 0.2 per cent.

Within its BTL range, two- and five-year fixed house purchase rates have fallen by up to 0.5 per cent, along with five-year fixed remortgage rates.

In its product transfer range, two-year fixed residential rates up to 75 per cent LTV have risen by 0.2 per cent and BTL five-year fixed rates have fallen by 0.5 per cent.

On the additional borrowing side, its residential two-year fixed rate up to 75 per cent LTV has risen by 0.2 per cent and BTL five-year fixed rates have fallen by around 0.5 per cent.

It is the second time that TSB has changed rates this month.

 

Virgin Money brings out fix and switch purchase and remortgage rates

Virgin Money has launched new fix and switch purchase and remortgage rates, and increased select rates.

The lender has brought out an exclusive purchase fix and switch fee-saver, with early repayment charges kicking in at the two-year mark. It is a five-year fixed rate at 95 per cent LTV with £250 cashback at 5.54 per cent.

Virgin Money has also added an exclusive remortgage fix and switch fee-saver product on a five-year fixed rate at 70 per cent LTV, at 4.99 per cent. It has a free valuation and free legals.

The end dates will move to June of the relevant year.

Virgin Money has also upped the five-year fixed fee-saver purchase exclusive rate at 85 per cent LTV, which has gone up by 0.05 per cent to 4.49 per cent.

Its five-year fixed purchase exclusive rate at 90 per cent LTV with a £1,295 fee has increased by 0.1 per cent to 4.5 per cent.

The firm’s remortgage exclusive fixed rates at 60 and 70 per cent LTV have risen by 0.05 per cent, with pricing beginning from 4.24 per cent.

Virgin Money’s exclusive BTL fixed rates with a £2,195 fee have increased by 0.05 per cent, with rates starting from 4.25 per cent.

Exclusive BTL fixed rates with a one per cent fee have gone up by 0.05 per cent, with rates starting from 4.39 per cent.

Two-, three- and five-year fixed product transfer rates at 65 per cent will begin from 3.98 per cent, and 80 per cent LTV will start from 4.84 per cent.

MAB’s Scottish firms exclusive partners for West One resi launch

MAB’s Scottish firms exclusive partners for West One resi launch

West One Loans entered the residential mortgage space in 2022 and is widening its range to Scottish homeowners and first-time buyers.

Speaking to Specialist Lending Solutions last year, Marie Grundy (pictured), managing director of residential mortgages and second charges at West One, said that the launch into the residential market was a “natural next step as we build on our already comprehensive product range” and its aim was to be the “UK’s largest non-bank specialist property lender”.

MAB’s Scottish adviser firms will have “exclusive access” to the product range for a “limited period”.

The product is designed to “help borrowers who need options outside of mainstream lending”, as it maximises borrowing potential and caters for complex financial circumstances such as inconsistent credit history, county court judgments, defaults and arrears.

Highlights of the range include automated affordability assessments, loan to values (LTVs) up to and over five times income, and the latest SA302 income taken into account for self-employed borrowers.

Danny Belton, head of lending at MAB, said: “We’re thrilled to have been chosen as the exclusive partner of West One to launch their innovative range of residential mortgage products.

“This partnership allows us to help more customers in Scotland to achieve their homeownership goals, ensuring those whose financial circumstances may not necessarily fit the high street are accommodated for.”

Belton joined MAB last year as its lending head, taking over from Brian Murphy, who retired after 20 years with the firm.

Grundy added: “We’re really excited to be working with MAB to launch our range of residential mortgage products in Scotland. MAB firms have a strong and established presence in the Scottish mortgage market, making them the perfect partner to offer our comprehensive product range to borrowers with more complex borrowing requirements.”

In its latest results, MAB said that it expected to report adjusted profit before tax to be better than expected due to improved trading in the last quarter of the year, and its revenue had risen to around £239m.

Leeds Building Society cuts resi, shared ownership and Reach rates

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

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 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. 

Suffolk BS moves into large loan market

Suffolk BS moves into large loan market

The standard residential large loan product and the expat residential large loan product will be available up to 80 per cent loan to value (LTV).

The residential large loan product is available at 5.19 per cent and the expat residential large loan deal is 6.09 per cent.

The expat deal is available to those working abroad who are paid in sterling and a range of major global currencies, including the euro.

Both deals are available for purchase and remortgage, on a capital and interest basis.

An application fee of £199 applies along with a completion fee of 0.1 per cent of the loan amount.

Overpayments of up to 50 per cent of the original balance can be paid early repayment charge (ERC) free.

The deal is of “particular benefit” to high-net-worth borrowers as many receive a larger percentage of their income through periodic bonuses and dividends.

Andrew Sadler, key account manager, Suffolk Building Society said: “We have responded to the growth in house prices, as well as demand from our intermediary and direct clients. We are pleased to now offer these larger loans, allowing higher value property purchases.

“We have experience of large loans in the self-build market, and we can now extend this to standard residential borrowers and UK nationals living abroad.

“We have long supported our expat clients and brokers specialising in the expat market. I’m delighted to be able to add another product into this niche area, providing expats with the opportunity to borrow up to £2m.”

Barclays cuts resi and BTL rates

Barclays cuts resi and BTL rates

The mortgage rate changes will come into force from tomorrow.

Within its residential purchase-only range, Barclays has made cuts of up to 0.41 per cent. This includes its mortgage guarantee fee-free five-year fixed rate, which has fallen from 6.27 per cent to 5.86 per cent.

The lender’s Springboard five-year fixed rate with no fee at 100 per cent LTV has decreased from 6.29 per cent to 5.99 per cent and at 95 per cent LTV its rate has gone down from 6.24 per cent to 5.95 per cent.

In its remortgage-only range, an example of its rate cuts includes its Great Escape two-year fixed rate with no fee at 60 per cent LTV, which has gone down from 4.81 per cent to 4.51 per cent.

On the purchase and remortgage side, an example of its reduction includes its two-year fixed rate at 60 per cent LTV, which has decreased from 4.8 per cent to 4.34 per cent. It has a £1,999 fee.

Within its buy-to-let range, cuts of around 0.5 per cent have been made to its purchase-only rates. Its two-year fixed rate with £1,295 fee at 75 per cent LTV has gone down from 6.18 per cent to 5.68 per cent.

Buy-to-let remortgage rates have also fallen by around 0.5 per cent. The lender’s two-year fixed remortgage no-fee deal at 60 per cent LTV has decreased from 6.3 per cent to 5.8 per cent.

Buy-to-let purchase and remortgage have also decreased by the same amount. Its two-year fixed rate at 60 per cent LTV with £2,495 fee has reduced from 6.3 per cent to 5.8 per cent.