West Brom BS extends LTV for mortgage prisoner products
The mutual launched mortgage prisoner-targeted products in September, starting with a 60 per cent LTV for interest-only and the other capped at 75 per cent LTV for capital repayment loans.
Products in the range include a two-year fixed rate modified affordability remortgage with a rate of 1.84 per cent at 75 per cent LTV. It comes with a £499 fee.
There is also a two-year fixed rate modified affordability remortgage with a rate of 2.24 per cent at 80 per cent LTV, whilst at 85 per cent LTV the product has a rate of 2.79 per cent.
The products come with a £499 fee.
The mutual was among the first to introduce modified affordability rules in September last year after regulation was changed to allow lenders to help borrowers who were unable to refinance since affordability assessments were changed following the 2008 financial crisis.
West Brom it had seen a steady stream of applications from borrowers but more needed to be done to support mortgage prisoners.
Jonathan Westhoff, the West Brom’s chief executive, said: “The introduction of these new products and lower loan to value requirements marks the next step in our approach to support mortgage prisoners. We’re hoping that by adding more products to the range, more borrowers can qualify to switch and access competitive mortgage rates in line with the current market. We’ve seen some borrowers saving up to £700 on their monthly payments, so there are significant savings to be had by switching.
“Whilst we’re pleased with the borrowers we’ve helped so far, we’ve always acknowledged that as a mid-sized lender we can only do so much, and we have called on other lenders for further support. Irrespective of the response, we still feel that far too few of these borrowers have been alerted to the opportunity to reduce their monthly mortgage payments.”
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.”
Virgin Money brings out 90 per cent LTV products
The lender said it was bringing back the exclusive two-year fixed rate from tomorrow. It was initially launched in February and withdrawn in May.
The product has a rate of 1.99 per cent and comes with £1,000 cashback.
It has also introduced a three-year fixed rate with the same rate and a £995 fee.
According to its intermediary website, there are 17 products at the 90 per cent LTV tier, which includes purchase and remortgage, shared ownership, green shared ownership, product transfer and tracker products.
Lenders pulled back from higher LTV lending during the pandemic as it was perceived as a greater risk.
Since then, lenders have re-entered the space, with 90 per cent LTV products rising from 62 in September to 579 this month.
Virgin Money came back into the 90 per cent LTV space in December with a five-year fixed rate and continued to add options to its range throughout the year.
Earlier this year the lender announced that it had broadened the eligibility of its 90 per cent LTV mortgages to movers and remortgagors.
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.”
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.”
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.
Cambridge BS launches self-employed mortgages for pandemic entrepreneurs
It includes a two-year fixed rate of 2.99 per cent, and a two-year discounted rate of 2.84 per cent. This is 2.05 per cent lower than the standard variable rate.
Both are available for remortgage and purchase up to 80 per cent loan to value (LTV), with a minimum loan size of £20,000 and maximum loan size of £400,000.
The mutual requires one year’s accounts, whilst most other lenders ask for two years.
Borrowers need to show previous experience in the same sector and two years’ evidence of former employed income as well as a projection of the second year’s trading.
Liam Flaherty, underwriting manager, said: “The self-employed appear to have experienced a greater drop in earnings, compared to employed workers. As experts in homes and housing, being a responsible lender and a support to local communities, we felt we needed to offer products that made it easier for this group to access funds for a home.
“I am not aware of other lenders offering this type of mortgage and know that it will enable more people to access funds.”
Self-employed borrowers have increasingly come under scrutiny in the past few months as the pandemic took its toll on earnings.
Some lenders restricted lending to borrowers who took Self-Employed Income Support Scheme grants, classing them as a higher risk.
Most lenders now accept business owners who took out government grants more than three months ago.
HSBC, NatWest, TSB, Halifax and Kensington have all made changes in recent months.
However, many self-employed borrowers remain pessimistic about their borrowing ability, with just over half of those surveyed by The Mortgage Lender in July saying it will be more challenging to secure a mortgage because of their employment status.
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.”
Clydesdale Bank cuts rates by 0.28 per cent
The lender has reduced two-year and five-year fixed rates at 80 per cent loan to value (LTV) by up to 0.08 per cent. Its two-year fixed rate at 80 per cent LTV stands at 2.09 per cent, whilst its five-year fixed rate at the same tier is 2.29 per cent.
Clydesdale Bank has also reduced selected 85 per cent LTV two-year and five-year fixed rates by around 0.28 per cent.
Its five-year fixed rate at 85 per cent LTV now starts from 1.8 per cent, whilst its five-year fixed rate starts from 2.25 per cent.
The lender’s exclusive two-year and five-year fixed rate at 90 per cent LTV has fallen by up to 0.2 per cent, with its two-year fixed rate set at 2.25 per cent and its five-year fixed rate pegged at 2.77 per cent.
Clydesdale Bank has made rate reductions to its professional and newly qualified professional between 95 per cent and 90 per cent LTV by 0.1 per cent.
Its two-year fixed rate for professionals at 85 per cent LTV is now 2.1 per cent and its five-year fixed rate is 2.4 per cent.
For newly qualified professionals, its two-year fixed rate at 85 per cent LTV is 2.3 per cent, whilst its five-year fixed rate is 2.6 per cent.