The Whiteaway Laidlaw Bank, who are part of the Manchester Building Society, has launched a competitive three-year fixed rate at 4.94%. It is available to those with a 30% deposit and has a 2.5% arrangement fee. The bank is also offering a three-year fixed rate at 5.74% with a low arrangement fee of £999. To qualify for these mortgages borrowers must earn a minimum of £40,000 if the mortgage is going to be in a single name, or £60,000 if in joint names. The majority of buy-to-let lenders now ask for a minimum income. However, Whiteaway Laidlaw have a higher requirement than most lenders.
Earlier this week The Mortgage Works launched a new 18 month tracker rate at 3.69% with a 3.5% fee for those with a 40% deposit. They also launched a two-year tracker at 4.29% which is available up to 70% ltv. This has a 3.50% arrangement fee. Their two-year fixed rate is now 4.99% up to 60% ltv with a 3% arrangement fee.
Bank of China is still offering a tracker rate mortgage at 4% with an arrangement fee of 1%. Potential investors will need a 35% deposit to access this deal.
31st August 2009
Trinity Financial has secured access to Alliance and Leicester’s (A&L) two-year fixed rate at 3.98%. It is available to those with a 30% deposit and has an arrangement fee of £999. The maximum loan size is £999,999. For those that think that tracker rates are offering better value for money A&L offer a two-year fully flexible tracker at 3.09% with a maximum loan size of £350,000. This has a £995 fee and is available to those with a 30% deposit. If you are remortgaging, A&L will pay for the property valuation and the legal fees providing you use one of their solicitors.
Aaron Strutt, a broker at Trinity Financial Group, says: “Alliance and Leicester are offering some really decent rates and their criteria is better than many other lenders on the high street. They will lend to the self-employed with just one-year’s trading accounts and they will also lend up to 85% loan-to-value (ltv) on interest only. Most mortgages are available on interest only up to 75% LTV.”
Friday 28th August
The Icelandic parliament has voted to repay more than £3 billion to the UK and Dutch Governments for the money spent compensating savers in the Icelandic banks.
A story released by MoneyMarketing today explained that the agreement was made in June, but passed with an amendment that set a limit on the payments based on Iceland’s gross domestic product.
Around 400,000 savers lost money in the collapse of the Icelandic banks last year.
The repayments will be paid in instalments over the next 15 years.
31 August 2009
The average buy-to-let investor now needs at least a 40% deposit to access mortgage deals with a competitive rental calculation -mortgage arrangement fees can be up to 3.5% of the loan amount and rates can be high.
However, there are some options available. Bank of China are offering a tracker rate mortgage at 4% with an arrangement fee of 1%. Potential investors will need a 35% deposit to access this deal but it is very competitive. The Mortgage Works (TMW) are offering a two-year fixed rate at 4.99% for those with a 40% deposit. It does have a rather high fee of 3.5%, but this is because TMW are one of the few mortgage lenders actively seeking buy-to-let business.
Second charges are now an option available to property investors. Many buy-to-let fixed rate mortgages have now come to an end and thousands of buy-to-let deals have reverted to incredibly low tracker rates, that they would not want to move from. However, many investors still have good levels of equity in their properties which they cannot access through the tradition routes, such as further advances and re-financing.
Trinity Financial has access to second charge deals that will allow up to 75% of the property value to be borrowed. This type of borrowing will allow funds to be released from properties which will in turn allow investors to purchase new property, refurbish them with a view to quickly selling them on, or indeed refinancing at a later stage and adding to their portfolio. Then repaying the second charge with the profits or remortgage monies.
21st August 2009
Figures from the Financial Services Authority have shown that 38 per cent of Britain’s 11.1 million mortgage borrowers are on interest-only mortgages and that they may not have a method of repaying their loan.
Over the last few months mortgage lenders have tighten up their lending criteria and many interest-only mortgages are now only available up to 75% loan-to-value (ltv).
Mortgages above 75% ltv are likely to only be available on a full capital repayment basis, although there are lenders who will still lend up to 85% interest-only. This is providing borrowers state their mortgage repayment plans such as: ISA’s, monthly overpayments, annual bonuses or sale of the property.
Some existing borrowers have been switching from repayment to interest-only mortgages to cope with problems like unemployment.
Aaron Strutt, a broker at Trinity Financial Group, says: “Many borrowers who took high loan-to-value mortgages are likely to be on interest-only. At a time when many fixed rate mortgage deals have come to an end millions of homeowners are paying low standard variable rates or tracker rate deals.”
“Now is the time, for those who are able, to be repaying some of your mortgage as the Bank of England base rate will not stay at 0.5% for ever – monthly payments will increase.”
“Most mortgages allow up to 10% of the capital balance to be repaid each year, or a portion to the loan to be put on full repayment. Many of our clients have taken out a mortgage where 25 or 50% of the loan is on interest-only and the remainder on repayment. There is normally an administration charge of around £25 to make a change like this with your current mortgage lender.”
21st August 2009
The Coventry Building Society reduced the cost of their offset mortgage deals at the start of this week and now have a two-year fixed rate at just 4.49%. To access this mortgage borrowers must have a 35% deposit and pay an arrangement fee of £999. A dedicated instant access savings account is provided with the mortgage so you can access your cash when you want it.
The main benefit of an offset account is that you can reduce the amount owed on your mortgage balance and, therefore, reduce your next monthly payment. Savings will offset against your debt. A free property valuation is provided and free legals if you’re remortgaging to the Coventry.
Aaron Strutt, a broker at Trinity Financial Group, says: “Northern Rock also have a fully flexible two-year fixed rate of 4.49% which has been very popular with many of our clients.”
“A number of other mortgage lenders have made changes to their mortgage rates this week, including the Halifax, The Co-operative and Abbey. Abbey increased the cost of their five-year fixes from 5.79% to 5.98%, and the Halifax reduced many of their first-time buyer deals from five-year fixes to three-year. Coventry launched an excellent variable rate mortgage at 4.99% for first-time buyers with a 15% deposit. They provide a free property valuation and charge a low arrangement fee of £499. There are also no penalties for re-paying the loan.
“The Nationwide Building Society have the lowest two-year fixed at just 3.98%. This is available to those with a 40% deposit and it is accompanied by a fee of £995. Nationwide will provide a free property valuation and free legals service if you are remortgaging. The Nottingham Building Society have the lowest two-year fixed at 3.99% for those with a 30% deposit. There is an arrangement fee of £1,495.”
Alliance and Leicester currently offer a two-year fully flexible tracker rate at 3.09% with a maximum loan size of £350,000. This has a £995 fee and is available to those with a 30% deposit. If you are remortgaging, A&L will pay for the property valuation and the legal fees providing you use one of their solicitors.
14th August 2009
The number of borrowers opting to take fixed rate mortgages has hit record levels, according to a survey produced by Paragon Mortgages. Seventy per cent of deals submitted by mortgage brokers from April until the end of June, were for fixed rates. This is the highest figure recorded since the survey’s launch in 1996.
Tracker mortgages amounted to just 26%, down from a high of 41%. A two-year term remained the most popular fixed rate mortgage. John Heron, Paragon Mortgages’ managing director, said that “borrowers’ hands might have been forced after lenders withdrew tracker deals when interest rates were falling.”
The cost of three and five-year fixed rate mortgages have risen sharply in recent months, leaving many borrowers with fewer long term fixed rate options. The cheapest five-year fix is through the Nationwide Building Society at 5.58% for those with a 40% deposit. The Nottingham offer a 5.59% deal if you have 20% to put down.
14th August 2009
The Bank of England’s Monetary Policy Committee decision to keep the rate of interest on hold at 0.5 per cent for the fifth consecutive month was widely expected. However, the bank’s decision to expand its programme of quantitative easing in a further attempt to get the economy back on track was a surprise to many. It is the second occasion that the scale of the programme has been increased. A further £50 billion will be injected into the economy, taking the total funding by the Bank to £175 billion.
Friday 7th August 2009