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Leeds announces new buy to let mortgage rates

[ Posted June 20th, 2012 ]

Although the most homeowners are cringing at the shape of the mortgage market right now, professional landlords are actually enjoying the fact that some of the best mortgage rates out there are designed for them.  This is due to the fact that many high street banks are actually lowering their buy to let deals in an effort to draw business through their doors, as the rental business is reaching new heights.  The reason for the recent surge in the buy to let market is two-fold, as it is partially due to the fact that many first time buyers cannot afford a home and partially due to the fact that property prices of potential letters is so low.

Leeds Building Society is the latest that hopes to draw in more professional landlords with an announcement of new buy to let mortgage rates designed to lure landlords their way.  One of their newest products is a five year fixed product that is set at 4.99% for the length of the term and a low attached 70% LTV.  In addition, if lenders needed another reason to consider the deal, the fact that the building society will also allow for 19% capital repayments every year without an early payment penalty is also very enticing.

Of course, this is not all that Leeds has to offer as they hope that their new fixed mortgages are going to draw a bulk of the professional attention their way.  They have also added a few extra perks that should make signing a new buy to let mortgage deal with them even more tempting for landlords that are expanding their portfolios and taking advantage of the low property prices and high demand.  Each of the perks has to do with fee cuts that are usually associated with a new mortgage.

For those that are willing to take the 5.49% offer that is also fixed at a 70% LTV or higher, fee assistance is available along with a free standard valuation that is otherwise considered to be valued at about £335.  For landlords that are simply looking to re-mortgage their current mortgage, free in-house legal services are also provided as part of this deal to make it as simple as possible.  Sales and marketing director for Leeds Kim Rebechhi stated the new five year product is aimed to help professional landlords that are looking to a competitive rate and looking to help first time landlords with the assisted fee program.

Loyalty programs offer better mortgage rates to their customers

[ Posted June 14th, 2012 ]

Building societies and banks are improving their loyalty programs for customers that have existing accounts with them in an attempt for to keep borrowers who are shopping around for the best mortgage rates that will meet their needs.  Banks are offering the loyalty drugs to all account holders that are part of their ‘loyalty’ mortgage deals.  Over the last few years, many of the high street banks including Santander, Barclays, and Halifax have started to make better and lower priced mortgage deals available to borrowers that have an account with them in an effort to entice them to stick to their banks.

In order to qualify for any of the low mortgage rates banks require that their customers have had an account with them for at least two months if not more and regularly contribute a regular amount of money into that account on a monthly basis.  NatWest just opened a new loyalty deal up to its customers with active accounts that are ten basis points less than the rates that other mortgage customers receive on the standard mortgage range.  The deals are available for a five year fixed mortgage.

The products help NatWest look a lot better to its own existing customers that are looking for fixed mortgages with attached rates as low as 4.19% for their existing customers.  The new deal does have a £999 fee, but it is much better than the standard five year fixed product that comes with an attached standard rate of 4.29%.  Mortgage broker Andrew Montlake from Coreco stated that usually they do not recommend customers go with loyalty mortgage deals, but the deals have improved over the last several months and therefore they are taking another look at them.

Another loyalty deal being offered to current customers that is worth noting comes from the Co-Operative Bank and is a lifetime tracker mortgage that starts at an interest rate of 3.19%.  What is notable about the tracker deal is that it is applicable for LTVs of 75% and under making it a great deal for those who are considering remortgaging their current deal.  In order to be qualified for the deal, customers must also have held a bank account with the Co-Op for the past two months and in addition have their salary deposited into the account every month on a regular basis.

Skipton releases new set of buy to let mortgage rates

[ Posted April 7th, 2012 ]

Skipton Building Society announced a new set of buy to let mortgage rates this week designed to attract landlords that are looking for fixed products with two, three and five year deals. The new products include different rate/fee combinations to attract every type of lender and is the first time that the building society is offering landlords 75% LTVs since they entered the buy to let market last year.

As buy to let lenders continue to dominate the lending market this is Skipton’s attempt to lure them towards their products. The two year fixed mortgages are available with LTVs as high as 70% and come with an attached rate of 4.69%.  The completion fee for this product is £750 and the application fee is £245.

Also available is another two year product that offers the elusive 75% LTV but  as a trade off the rate increases up to 5.09% with a completion fee of £1250 and the same application fee as the previous product. These are good choices for the landlord that wants a short term deal with the hope of better products on the market once the loan value decreases.

For those looking for a slightly longer deal Skipton is also offering a three year set of fixed deals that also range in value from 70-75% LTVs.  The buy to let mortgage rates range from 4.59% to 5.39%; with the latter corresponding to the 75% LTV for those that do not have as high of a deposit or equity in their products. The higher LTV product comes with a completion fee of £1,250, the lower product comes with a completion fee of £750, and both have an application fee of £245.

Also available are two five year fixed rate products also set with 70 and 75% LTVs. The five year 70% LTV product is an excellent choice for those looking to cut down on fees as it does not carry an application fee and comes with a 2% completion fee based on the value of the loan and an overall interest rate of 5.19%. The 75% LTV comes with an interest rate that is set at 5.69%, an application fee of £245, and a completion fee of £1,250 which makes it a good choice for those with a high value mortgage.

Chelsea Building Society new mortgage deals

[ Posted February 6th, 2012 ]

Chelsea Building Society is offering new mortgage rates that are set to be a great deal for those looking for long term fixed mortgages. The new mortgage deals start out at 3.19% and will stay at this for five years  and will be particularly beneficial for those who want the security of knowing that their mortgage will not increase over the coming years, despite the shape of the economy.

Outside of credit criteria, the new mortgage deal comes with a 70% LTV and an upfront arrangement fee of £1,495, making it a better choice for those who have equity and want to remortgage their home at a better rate. Finance analyst Andrew Hagger from the website moneynet.co.uk stated that the deal is a great idea for those that plan on borrowing over £117,000 or more because any less and you will be better off borrowing at a slightly higher rate and not paying any arrangement fees.

He mentioned a deal that is being offered by the Co-Operative Bank that comes attached with a 3.59% mortgage rate that doesn’t have a product fee that would be an overall better deal for those with lower borrowing totals. Clare Francis, a financial analyst from MoneySupermarket.com also offered her take on the new best mortgage rates from Chelsea Building Society, stating that the low 3.19% is going to look enticing at first to many first time home buyers because it is a great rate for a fixed mortgage.

She added that the high deposit required for the mortgage will, however, keep many from actually taking advantage of the low mortgage rate.  She added that those that are looking for greater security in the coming months are going to want to take a harder look at the affordability of the mortgage as it may be the best option.

In terms of the market outlook the guide for the mortgage rate, the base rate from the Bank of England has been sitting at 0.5% which is a historic low, since March of 2009.  So long as this rate remains low, and there is not too much more economic turmoil,  then mortgage rates should remain low overall.

Most experts believe that it will stay down over the course of 2012 but that eventually it is going to jump up, which will greatly affect the mortgage market by forcing many homeowners to dig a little deeper into their pockets in order to make housing payments.

House prices drop during January

[ Posted February 4th, 2012 ]

Despite the fact that many people rushed out to secure fixed mortgages during January when the mortgage rates started to increase in order to lock down better long term rates, house prices still started to drop. One reason for the drop is that many predict the market is going to grow stale again in the coming months as the rates increase and interest in home buying decreases.

Without much movement in the market house prices will continue to decrease, and some are even predicting that the prices are going to stray ‘sideways’ over the rest of 2012. According to new figures released from Nationwide, house prices fell by about 0.2% during January which is reasonably steady compared to the last quarter of 2011.

This is great news for first time home buyers because low mortgage rates and falling house prices make owning a home the cheapest it has been for ten years.  However, LTV’s remain high and the large deposits required for purchasing a mortgage are keeping many first time buyers from getting a leg up on the property ladder.  Tighter credit restrictions are also keeping many first time home buyers away from the housing market.

House prices still remain about 0.6% higher than they were in January of last year, which means that even without the best mortgage rates the housing market is managing to claw back a bit of its momentum. Therefore, the great housing dip that many analysts are afraid of occurring may not be half as bad as many people think.

Of course if the demand from buyers continues to stay low, and more properties are released into the market as a result of foreclosure, or simple sales without much uptake then house prices will still continue to edge downwards slowly. Chief economist for Nationwide, Robert Gardner stated that he believes house prices are not going to increase much over the course of the year due to the fact that most potential buyers are not going to be able to afford the high deposits.

He added that as more properties continue to flood onto the market the prices are only going to go sideways and possibly begin to fall over the next few months.  Those who can take advantage of the market will see some great mortgage deals including a new fixed mortgage from Chelsea Building Society set at a low 3.18% for five years.

Co-Operative slashes fixed mortgage rates

[ Posted January 14th, 2012 ]

At the close of last year, many mortgage experts were predicting that mortgage rates would start to steadily increase and as the fourth quarter progressed most of the larger banking and lending institutes had already started to slowly increase their rates. This made many analysts concerned that first time home buyers would continue to get shut out of the mortgage market and that the housing market in general would stall again as customers found that they had no other offers on the table.

However, just this week a few of the major lenders have actually reduced their rates, breathing some fresh air into the mortgage industry. Co-Operative made headlines this week by slashing their fixed mortgages by as much as sixty base points, offering those who have not yet remortgaged a shot at getting some great rates before they actually do increase.

First time buyers can also benefit from the high LTV’s that many thought would disappear as it offers them a chance to get onto the market without a large deposit. In some cases, there are even some high LTV’s that do not have any fees attached to them making a home purchase seem a bit more practical.

Included in the discount are fixed mortgages that feature a twenty base reduction with an 85% LTV. The new rates for these are 3.79% or 3.99% depending on whether the loan applicant can afford to pay the £999 product fee or not.  Head of mortgages James Hillon for Co-Operative Bank stated that in the wake of the eurozone crisis there are many lenders that were quick to increase their mortgage rates, but their banking institute is committed to going against the wave and instead helping to build the housing market back up.

Hillon added that outside of lowering their mortgage rates, they also have many different LTV’s available to help all types of home owners get back into the market.  Some of the offers do not even have fees with slightly larger rates instead, to help those who cannot afford the upfront costs of securing a mortgage.

Most of the three year fixed rates offered by Co-Operative have dropped from ten to fifty base points with one 90% LTV coming in at 3.89% which, for the current state of the mortgage market, is a reasonable deal.  Nationwide also announced similar deals this week that have made consumers evaluating their options.

Equity specialist LV cuts mortgage rates

[ Posted January 6th, 2012 ]

At a time when most experts are concerned about mortgage rates increasing LV, the equity specialist, has announced a move that has shocked many people. The firm announced this week that they would drop their lifetime mortgage rate for customers that are under the age of eighty that are interested in signing up for a long term mortgage.

Given the current state of the mortgage market, and the shaky ground that it is now teetering on as a result of the Eurozone debt crisis and inflation, signing into a long term mortgage is a good way to find financial security.

LV announced its best mortgage rates for those that are interested in flexible and lifetime mortgages at the start of the week.  A standard rate change from the company includes a drop down to 6.49% from 6.59% for a lifetime mortgage for someone that is between the ages of sixty to eighty.

Those that are interested in a standard flexible lifetime mortgage will find that the rate from LV has dropped from a high of 6.79% down to 6.69% with qualifying credit for the mortgage agreement. Vanessa Owen, the head of equity release for LV, stated that the company feels that when this offer is combined with the equity specialists already low rates then their products will become a strong choice for clients and advisers who are searching for good deals.

Lifetime mortgage products are usually sought out by those who have reached retirement age and want to fix their monthly bills so that their spending is controlled on a regular basis. Although this type of mortgage does not allow for market changes that could produce lower mortgage rates down the line, it does offer a sense of security against future market shifts that could adversely affect a pensioner on a fixed budget.

LV also announced in November the launch of a new product called the Pension Income Plus Annuit,y that allows customers who have a high income upfront to purchase a home with lower income in the future, accounting for such as those who receive large upfront annuities.

This allows for careful budgeting to make sure that a home mortgage remains affordable even as they continue to age and slowly find that their income is not as high as it used to be back when they originally secured the mortgage.

Property Market Forecast for 2012

[ Posted December 30th, 2011 ]

House prices are expected to continue to fall throughout 2012 as a result of the poor economic state and the fact that the eurozone crisis will place tighter restrictions on banks as they choose who to lend to.  Many different estate agency groups are already predicting that there will be declines across the housing market next year, with Knight Frank estimating that overall house prices will fall by about 5%.

Hamptons International, however, is a bit more optimistic predicting a 2% fall. As mortgage rates continue to increase this will also hurt the housing market as less people will be heading to their lenders for remortgages, which was the backbone of the mortgage lending activity this year.

Property experts are expecting the overall demand from homebuyers to also fall during the coming year which will decrease the amount of housing transactions that are completed. Nigel Bedford from largemortgageloans.com stated that the underlining message to be heard about the property market this year, and the state of the average mortgage rate is that the uncertainty that is effecting the economy in the UK, and globally, is going to be reflected in an uncertain housing market as more people are concerned about acquiring any more debt.

Outside of the average home owner, mortgage brokers are also worried about how the sovereign debt crisis from the eurozone is going to affect financing for those who are interested in acquiring a commercial mortgage, or those who are concerned about buy to let investments.

Overall, the higher costs of wholesale lending known as the Libor, is expected to continue to increase which will cause rates in turn to also continue to increase.  As most budgets are already quite tight, the jump in mortgage rates could cause problems for homeowners that did not switch to a fixed deal while the rates were down.

John Charcol mortgage broker Ray Boulger stated that he thinks that the lending costs for banks will continue to increase over the year until some type of resolution is found for the eurozone debt crisis. Until this point is reached he stated that banks will be forced to reduce the amount of new loans they make over the course of 2012 and will have to attach higher lending rates to those that they do complete, hurting both the average consumer and the housing market.

Leeds Building Society announces new fixed mortgages

[ Posted December 30th, 2011 ]

Even though many people are noticing that the mortgage rates are starting to increase as a result of the Euro zone crisis and other factors, there are still some great deals out there for those that can afford a deposit on a home.

Therefore, even though the same flat rate deals may no longer be on the market now is still a great time to take advantage of a deal that can help make owning a home cheaper in the long run. However, now is the time to act as prices will only continue to increase as time continues to pass.

One of the newest deals to hit the market this week is from Leeds Building Society which just announced new deals for those in search of fixed mortgages that are tied to a three year term.  As part of their new deal the lender announced that it will take off its £800 closing fee and offer consumers a free valuation of a home that is worth up to £335 for any lender that is taking out a loan.

The building society will also offer those that work with it free legal services for all remortgages, making it an attractive time to stop in and see what they can do for you. Homebuyers will be pleased to see that the three year fixed mortgages come attached with rates as low as 3.04% and increase upwards to 3.99% depending on the LTV that an interested consumer is able to afford, along with their credit worthiness.

Sales and marketing director for the Building Society, Kim Rebecchi, stated that they are happy to start 2012 off on the right foot with deals for those who want to buy a home or help for those who want to refinance their home at a better rate. Rebecchi also said that the products that have their fees reduced or removed are great choices for both those in the market to remortgage and for those who want to purchase a home for the first time.

At the beginning of the month Leeds Building Society also announced a new shared ownership deal for first time home buyers that need help getting out there on the property market which can be an excellent option for those struggling to meet the high demands of a standard LTV in today’s housing market.

FSA scrapes plan to requires mortgage rejection explanations

[ Posted December 10th, 2011 ]

This week, the Financial Services Authority took an opposite stance to the one made earlier in the year in which they said that they would require intermediaries to find out why any mortgage application was rejected. The FSA first stated at the start of the year that if one of the low rate mortgage rate applications was rejected intermediaries would be required to find out why the application was not approved, but a new 168 page guide that came out today said that this is not a requirement anymore.

The guide is focused on financial crime which has been on the rise this year with end of the year surveys showing that mortgage fraud is on the rise along with the fall in mortgage rates. The watchdog organisation stated that that it is not possible for lenders to publish this information to all intermediaries because in some instances they may question the good will of the intermediary and need to withhold this type of information.

Therefore, it is not possible to mandate that all mortgage rejections be explained fully to the intermediaries that are acting on a mortgage applicant’s behalf. In regards to the explanation of why fixed mortgages may be rejected, the FSA stated that they realise that finding out the reason for mortgage rejection may be a good tool in preventing fraud, but there are many problems that intermediaries can get into by using this small piece of good practice.

Therefore, the organisation decided that it is in everyone’s best interests simply to remove the stipulation from the law. The FSA did add that they do still believe that intermediaries and lenders should work together to change the way that they share information but a mandate in this case is the not the best way to proceed.

Mortgage approvals have actually increased this year compared to last year’s year end average, due partially to the sharp decrease that mortgage rates took over the past year and the banks’ competitive pricing plans. However, as the market becomes unstable again the rates are beginning to inch back up and it is expected that the next year may return to previous harsher standards for those seeking out a first time home mortgage or other type of mortgage approval.

 
 
 
 
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