Virgin Money adds broker exclusive remortgage deals and applies multiple rate cuts
The new, exclusive two-year fixed remortgage products included a 1.04 per cent rate, at 65 per cent loan to value (LTV), with a fee of £1,495, free valuation and £500 cashback.
Additionally, the lender added an exclusive two-year fixed remortgage rate at 1.05 per cent, on 75 per cent LTV, with £1,495 fee and free valuation and legals.
Also in broker exclusive offers, rates were cut on the £1,000 cashback range for purchase. The highlight was a 19 basis points (bps) reduction, to 1.58 per cent, on the two-year fixed at 80 per cent LTV, with £995 fee.
Resi, Greener, Help to Buy, BTL
Rate cuts swept across the product ranges, fixed rate terms and LTV tiers.
At 95 per cent LTV, the two and three-year fee-saver fixed rates were cut by 10 bps to 3.28 per cent.
The five-year fixed fee-saver at 95 per cent LTV was lowered by 13 bps to 3.44 per cent.
Rates were cut on the Greener residential products, including a 63 bps reduction, to 1.15 per cent, on the two-year fixed at 75 per cent LTV with £995 fee.
The deepest cut on the Help to Buy roster was 93 bps to 1.88 per cent, on the two-year fixed fee-saver at 75 per cent LTV.
On the Help to Buy Greener two-year fixed, the rate was lowered by 76 bps to 1.35 per cent, with £995 fee, at 75 LTV.
In buy-to-let (BTL), rates were trimmed, with, for example, a cut of 8 bps to 1.64 per cent on the two-year fixed at 75 per cent LTV, with £995 fee. The same cut applied to the portfolio BTL two-year fixed at 75 per cent LTV, bringing it to 1.74 per cent, with £995 fee.
Rate cuts were applied to product transfers across the LTV tiers. These included, in core residential, 58 bps shaved off the three-year fixed at 90 per cent LTV, giving a rate of 2.39 per cent, with £995 fee. They included cuts at 95 per cent, such as the 13 bps reduction to the five-year fixed rate fee-saver, to 3.44 per cent.
Highlights of cuts on Help to Buy and BTL product transfers included a 43 bps reduction to 1.88 per cent on the Help to Buy two-year fixed fee-saver at 75 per cent LTV.
On BTL, the biggest cut was on the five-year fixed at 60 per cent LTV, with a £995 fee, which was lowered by nine bps to 1.65 per cent.
The new products and rate changes are available from today.
The Cumberland BS relaunches two-year fixed rate holiday let deal
The product has a rate of 3.84 per cent and has a maximum loan to value (LTV) of 75 per cent.
The move comes after the building society cut rates in June on loans over £750,000 for its holiday-let range as it anticipated market growth due to increased holidays in the UK.
The building society will lend up to £2m on an individual transaction and up to £5m for aggregate borrowing across a portfolio of properties.
Their holiday-let products are available for occupancy-restricted property and larger portfolios in mainland UK, and the Isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight.
The Cumberland’s commercial lending head Scott McKerracher said: “The two-year fixed product has previously been popular with our customers, so we’re pleased to be able to offer this option once more.”
Holiday lets have become increasingly popular over the past year as tax benefits, UK holidays and lockdown savings have encouraged would-be investors into the sector and growth is set to continue.
Yorkshire BS prunes high LTV rates and brings in 95 per cent remortgage
The changes are effective from today, with the rate for its two-year fixed at 95 per cent LTV falling from 3.79 per cent to 3.45 per cent. The product comes with a £995 fee, £250 cashback and free standard valuation.
The lender has also cut the rate for its fee-free five-year fixed rate at 95 per cent LTV by 0.1 per cent to 3.88 per cent, which comes with free standard valuation.
Yorkshire Building Society has reduced the rate for select 90 per cent LTV products, including a five-year fixed product which has fallen by 0.1 per cent to 3.49 per cent.
The lender’s two-year fixed at 90 per cent LTV has also been decreased by 0.2 per cent to 3.09 per cent.
Both above products come with a £495 fee, £750 cashback and free standard valuation.
The lender has also introduced two remortgage products, a two-year fixed with a rate of 3.70 per cent and a five-year fixed with a rate of 3.79 per cent. Both are free-free and come with free standard valuation and remortgage legal service.
Yorkshire Building Society’s mortgage manager, Ben Reed, said: “We’re really pleased to introduce this refreshed range, which we hope will help support a variety of borrowers with smaller deposits, including those looking to remortgage with less equity.”
Metro Bank expands 95 per cent LTV range and cuts rates
The lender has introduced a two-year fixed at 95 per cent LTV with a rate starting at 3.69 per cent and a three-year fixed with rates starting from 3.79 per cent. The products are available for purchase and pound for pound remortgage.
Metro Bank launched its 95 per cent LTV mortgages in April this year, initially offering a five-year fixed product with a rate of 3.89 per cent and a maximum loan size of £570,000.
The lender has also cut the rates on select 75 per cent LTV residential mortgages by up to 0.5 per cent, which is available for new lending and existing customers looking to switch rates, top-up or take a further advance.
The rate for its two and three-year fixed at 75 per cent LTV will start at 2.09 per cent, having previously started from 2.59 per cent.
For its five-year fixed products, rates will start from 2.24 per cent, having previously been set at 2.94 per cent.
Metro Bank’s head of mortgages Tony Davis said: “These changes will help us continue to assist our increasing range of customers and is a good example of us listening and responding to customer and broker feedback.”
The lender has been expanding its range in recent months, partnering with Churchill Expert to offer SME Insurance in February and launch a near prime mortgage range in March.
Metro Bank has also tripled its buy-to-let assured shorthold tenancy to 36 months and increased income multiples for its professional and high earner borrowers to 5.5 times income.
Newcastle Intermediaries adds products to joint mortgage sole proprietor portfolio
The lender said that JMSP allows an applicant to apply for a mortgage using supporting income of a family member, but the mortgage will not be in joint names and the occupying borrower will own the property.
The range includes a five-year fixed product at 3.99 per cent and a two-year fixed rate of 3.09 per cent.
The five-year fixed includes an early repayment charge (ERC) of five per cent in the first year of the fixed term, before declining incrementally and reaching one per cent in the final year.
The two-year fixed is also subject to ERCs of two per cent in the first year and one per cent in the second year of the fixed rate term.
The products come with a free standard valuation on properties up to £500,000 and permits 10 per cent overpayments per annum in addition to the £499 of overpayments already allowed.
Newcastle Building Society’s head of intermediary mortgages John Truswell (pictured) said: “JMSP is an innovative product which many brokers have accessed enthusiastically over the past 12 months.
“I’m pleased that by increasing the maximum LTV to 95 per cent we’re extending support to include those borrowers who can rely on that family support but don’t have access to big deposits.”
The new products follow the lender’s re-entry into the residential high LTV market last week, with two and five-year fixed 95 per cent LTV products. The lender originally retracted products at this tier in March last year in response to the pandemic.
The lender also relaunched its Help to Buy for first time buyers in April and cut rates for its 85 per cent LTV mortgage rates in January.
Yorkshire Building Society cuts 23 remortgage product rates
The lender has reduced the rate on its two-year fixed at 80 per cent loan to value (LTV) by 0.03 cent to 1.85 per cent. The rate for its two-year fixed at 85 per cent LTV is now 2.4 per cent, down by 0.05 per cent.
Both the above products come with a £1,495 fee.
The lender also cut rates on a range of five-year fixed deals, with the rate on the 75 per cent LTV now 1.52 per cent, down from 1.54 per cent.
Yorkshire Building Society also reaffirmed its two-year and five-year fixed deals at 90 per cent LTV, with no changes to the rates.
Yorkshire Building Society’s mortgage manager Ben Reed said: “With a combination of lower rates and additional features such as free standard valuation, cash back or free remortgage legal services, we hope to give borrowers a number of options to be able to best choose which suits their individual needs.”
Dudley Building Society expands energy efficient offering to meet green mortgage demand
For existing customers, an advance two-year product with a 2.1 per cent discount for energy efficiency is now available with a rate of 2.89 per cent, and a maximum loan to value (LTV) of 70 per cent.
Loans between £5,000 and £100,000 can be offered, and 0.5 per cent cashback is available. The cashback is paid on completion and has no arrangement fee.
Landlords wanting to improve their properties to an EPC rating of at least C can now access a three-year fixed rate at 3.79 per cent, up to 70 per cent LTV.
The product has a minimum loan size of £175,000, with the maximum loan size set at £1 million. The product offers £950 cashback on completion and no arrangement fee.
For homeowners, the lender will now offer a two-year fixed at 3.79 per cent, up to 80 per cent LTV, if they want to improve the EPC rating to a minimum of B.
This product also has £950 cashback on completion, no arrangement fee and a free valuation and fee-assisted legals.
As part of the offer, customers must commit to completing energy upgrade works.
Dudley Building Society’s commercial director Sam Ward (pictured) said: “The green mortgage market has experienced increasing domestic demand over the past eighteen months and, with the government keen to cut down emissions, launching these remortgage and further advance products is our initial response.
“We hope to incentivise more homeowners who have been looking for ways to improve their properties’ energy efficiency and reward them with strong products allied to a combination of cashback and/or fee assisted incentives,” she added.
HSBC reduces rates on selected 60 and 75 per cent LTV fixes
The lender has cut the rates on 15 lower LTV products, and the rate changes follow from reductions to its higher LTV products of up to 0.2 per cent last month.
Highlights of the latest changes include a reduction on its two-year fixed 60 per cent LTV product, which has been cut by 0.1 per cent to 1.04 per cent. This product is subject to a £999 fee.
The lender’s equivalent two-year fixed 60 per cent LTV feesaver product has also been reduced by 0.1 per cent to 1.29 per cent.
HSBC’s two-year fixed at 75 per cent LTV with a £999 fee has been cut by 0.05 per cent to 1.29 per cent, whilst its equivalent feesaver product has been slashed by 0.15 per cent to 1.59 per cent.
The lender’s five-year fixed at 60 per cent LTV with a £999 fee has been reduced by 0.05 per cent to 1.19 per cent, whilst its feesaver five-year fixed at 60 per cent LTV is down by 0.05 per cent to 1.49 per cent.
HSBC UK’s head of buying a home Michelle Andrews (pictured) said: “Whether customers have a larger or smaller deposit, recent cuts to mortgage rates across all LTVs will be welcome.
“Plus, with the Stamp Duty Land Tax tapering down at the end of the month, these cuts will make getting onto 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,” she added.
Over 300 products introduced since May as lenders compete on rates
According to Moneyfacts there are around 4,243 mortgage products on the market, which is the highest since the onset of the pandemic and the eighth month of growth.
Product counts increased across the measured categories, which included 95 per cent LTV, 90 per cent LTV and 60 per cent LTV, with 316 more products available compared to last month.
The largest increases were seen in the 95 per cent loan-to-value (LTV) category, with 192 products now available, an increase of 80 from May.
Average two- and five-year fixed rates across all LTVs increased slightly to 2.59 per cent and 2.82 per cent.
For 95 per cent LTVs, the average two-year fixed rate came to 3.88 per cent in June, an increase of 0.6 per cent compared to the same period last year and 0.63 per cent up from the same period in 2019.
Moneyfacts finance expert Eleanor Williams said that this is the lowest rate since last June when there were just 31 deals available.
According to the Bank of England statistics April, May and June are the first months since September last year that average two-year fixed rates have dropped below four per cent for 95 per cent LTVs.
Average five-year fixed rates for 95 per cent LTVs were 4.07 per cent, which is an increase of 1.05 per cent compared to the same period last year and a 0.59 per cent increase from 2019.
Moneyfacts said the average rates for a two-year fixed rates at 90 per cent LTV stood at 3.37 per cent, which is an increase of 1.07 per cent from June last year and an increase of 0.73 per cent from the same period in 2019.
Average rates for a five-year fixed rate at 90 per cent LTV are 3.62 per cent have increased by 1.05 per cent from June last year and 0.59 per cent from the same period in 2019.
Williams added: “The resurgence of high LTV products and the fact that their average rates are beginning to fall is particularly good news for first-time buyers, especially considering that Nationwide Building Society’s recent House Price Index Report found that house prices have risen nearly £24,000 over the past year, meaning that building that five per cent deposit is even harder now.”
Average rates for both two-year and five-year fixed rates for 60 per cent LTV were the only LTV band to see reductions year on year, with rates currently standing at 1.61 per cent and 1.81 per cent.
The rate for two-year fixed rate for 60 per cent LTV is the highest this year so far and is the first time that rates have broached 1.6 per cent since 2019 according to Bank of England figures.
Williams said: “As well as changes in the top LTV tiers, rate competition has become evident at the opposite extreme of the LTV spectrum, with a number of lenders launching eye-catching sub-one per cent mortgage deals in the lowest LTV brackets.
“These record-low rates are available to low-risk borrowers with high levels of equity, but as to whether this competition will extend to higher-LTV deals remains to be seen as we navigate the full economic impact of the last year.”
Primis mortgage network’s proposition director Vikki Jefferies said: “As lender appetite improves, particularly in the 95% LTV space, advisers will be crucial in supporting this segment of the market and highlighting the options available to borrowers. With more customers likely to approach a broker for support when securing a mortgage in the coming weeks, it will be vital that advisers also educate them about their protection options, either by providing this information themselves or by referring clients to a specialist.”
She added: “Many consumers have been financially impacted by the crisis, but guidance from a qualified broker can ensure they are protected against future financial hardship, should the worst happen.”
Santander cuts intermediary exclusive rates and product fees
Its two-year fixed rate at 70 per cent loan-to-value (LTV) for remortgage will be cut by 0.05 per cent to 1 per cent, whilst the rate for its similar purchase product will be reduced by 0.03 per cent. Both products are subject to £1,249 fee.
The lender’s two-year fixed rate at 75 per cent LTV for remortgage will now stand at 1.24 per cent, a reduction of 0.05 per cent.
The lender also cut the rate for its five-year fixed rate at 75 per cent LTV for remortgage by 0.02 per cent to 1.5 per cent. The fee has also been reduced by £250 to £1,249.
The fees for its five-year fixed rate at 70 per cent LTV and 75 per cent LTV for purchase has simultaneously cut by £250 to £1,249. The 75 per cent LTV product has had £250 cashback added.