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The Nationwide Building Societies ‘switch and fix’ scheme is proving to be extremely popular with Trinity Financial’s clients. Many borrowers are keen to take advantage of the cheap tracker rates currently available and like the security of being able to switch in to a fixed rate without penalties. The lowest rate on this scheme starts at 3.08% and it has an arrangement fee of £995.

Coventry Building Society have the cheapest two-year fixed rate at 3.95%. The maximum loan is £1 million and they also offer a free property valuation.

Four-year fixed rates are now offering much better value for money than the traditional five-year fix. Four-year fixed rates start at just 4.99%.

25th September 2009

Abbey has launched a range of exclusive mortgage deals only available to mortgage brokers aimed at supporting homebuyers. Abbey’s new range of deals will pay for borrowers’ properties to be valued and for their solicitors fees, providing one of Abbey’s nominated solicitors are used.

The ‘Homebuyer Plus’ option currently includes three rates, a two-year fixed at 3.99% for those with 30% deposit or a two-year tracker at 3.29% for those with 25% deposit. Borrowers with a 15% deposit can access a three-year fixed rate at 5.99%. All deals have an arrangement fee of £995.

Aaron Strutt, a broker at Trinity Financial Group, says: “There are very few products in the market like this, especially with such competitive rates. First-time buyers with decent deposits are likely to find these deals particularly attractive as up front costs are kept to a minimum.”

Abbey also reduced many of their fixed rates today. They now offer two-year fixed rates at 3.99% for loans up to £1 million. The arrangement fee is £995 and borrowers must have a 30% deposit. Abbey will pay for the property valuation and legal costs if you are remortgaging.

Five-year fixes were also cut. These now start at 5.49% if you have a 30% deposit. Previously their best five-year rate was 5.98%.

Abbey have been running a pilot scheme through selected mortgage brokers for a few months now. Borrowers that are willing to switch their current account to Abbey will qualify for a cheaper mortgage rate. This will not appeal to everyone, but, if you are happy to switch your current account two-year fixed rates start at just 3.89%.”

25th September 2009

Lloyds Banking Group has limited the amount of buy-to-let mortgages investors can have across the group, which includes Birmingham Midshires and Cheltenham & Gloucester. There is now a maximum of amount of 9 properties and a total lending limit of £3,000,000. This could cause real problems for many investors, but there are alternatives available.

The Coventry Building Society has launched a competitive two-year fixed rate at 5.39%. There is a 2% arrangement fee and investors must have a 40% deposit. The Coventry will provide a free property valuation and a free remortgage transfer service.

The lowest fixed rate that Trinity Financial Group can offer is just 4.94%. It is fixed for three-years and available to those with a 30% deposit.  The cheapest tracker is just 3.99% and up to a maximum of 60% loan to value.

Bank of China still offer tracker rate mortgages through brokers at 4% with a low arrangement fee of 1%. Potential investors will need a 35% deposit to access this deal.

The Coventry Building Society may have the cheapest two-year fixed rate at 3.95%, but with a maximum loan-to-value of 50% it is not available to many.  It does have a free valuation and a low £995 arrangement fee but this is only likely to be available to remortgage customers.

Alliance and Leicester have a more sensible two-year fixed rate at 3.98% which is available to those with a 30% deposit. It has an arrangement fee of £999 and a maximum loan size of £999,999.

The Nationwide Building Society has the lowest three-year fix at just 4.58%. It is available to those with a 40% deposit and for loans up to £1,000,000. There is an arrangement fee of £995 and a free property valuation and legals service if you are remortgaging. Borrowers with a 30% deposit can also access Abbey’s three-year fix at 4.78%. This has a £995 arrangment fee.

Trinity Financial Group is recommending a four-year fixed rate to its clients that would prefer to have payment security for more than a couple of years. It is fixed at 4.99% and available to borrowers with a 30% deposit. The lender provides a free property valuation and also a free legals service if you are remortgaging. The maximum loan is £1 million. The lowest five-year fixed rate is now considerably higher at 5.58% and we think the four-year fix is a sensible alternative.

18th September 2009

Over the last few weeks there has been a real mix of mortgage news. Last Friday the Royal Bank of Scotland increased many of their market leading fixed rate mortgages by as much as 0.7%. On the same day the Nationwide Building Society increased their fixed rate remortgage deals by 0.2%. Nationwide raised their rates in an effort to get borrowers to remortgage from their excellent standard variable rate, which is just 2% over bank base rate. Nationwide want more customers to repay their mortgages to generate more cash to boost their balance sheet.

The most surprising announcement was from The Woolwich. They launched a fantastically low tracker rate at just 1.98%. This mortgage is available to those with a 40% deposit and it has an arrangement fee of £995.

Aaron Strutt, a broker at Trinity Financial Groups, says: “For the first year of the mortgage you pay 1.48% over base rate, which is amazingly low. But in years two and three the margin increases to 2.49% over base (currently 2.99%). You are tied in for three-years.”

“If you feel that there is a risk that base rate will increase over the next few years and that the margin of 2.49% is just too much,  there are other trackers rates available that should provide you with some peace of mind.

“A large mortgage lender has re-introduced their ‘switch and fix’ scheme. This allows borrowers to take advantage of the cheap tracker rates currently available and then switch into one of their fixed rate deals at a later date. You would not have to pay any penalties for switching if base rate started to rise. The lowest rate on this scheme starts at 3.08% with a £995 arrangement fee.”

18th September 2009

Story from The Times on Saturday:

Homeowners have been warned to tread carefully as mortgage lenders put a premium on new “no-fee” deals and introduce more home loans with percentage fees.

Northern Rock introduced a number of new deals this week, including a two-year fixed rate of 4.09 per cent with a £995 fee, or 5.09 per cent for the fee-free option.

Cheltenham & Gloucester, owned by Lloyds Banking Group, is also guilty of introducing wide gaps between rates on its fee and no-fee deals. This week it introduced a three-year fix at 4.99 per cent with a £995 fee, or 5.69 per cent without the fee.

Aaron Strutt, of Trinity Financial Group, the mortgage broker, says: “Borrowers are put off by fees and might think that the fee-free deal is cheaper overall. However, the rate is much more expensive. If homeowners are speaking to lenders directly, it pays to ask for the full range of deals available — and do your sums before you apply.”

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6833801.ece

September 12th 2009

The Monetary Policy Committee once again kept base rate at 0.5%.  Base rate has now stayed at 0.5% for six consecutive months.

11th September 2009

Birmingham Midshires have made changes to their fixed and tracker rate mortgages. They now offer a two-year fixed rate at 5.40% for those with a 25% deposit. This is accompanied by an arrangement fee of 2.5%. They also offer a two-year fix at 5.90% with a lower fee of 1.5%. For those that want to take a base rate tracker mortgage, two-year deals for those with a 25% deposit start at just 4.10%.

The Mortgage Works have some of the most competitive investment mortgages in the market. Their 18 month tracker rate is just 3.69% with a 3.5% fee and it is available to those with a 40% deposit. They also have a two-year tracker at 4.29% which has a maximum ltv of 70%. The arrangement fee is 3.5%. Their two-year fixed rate is now 4.99% up to 60% ltv and it has an arrangement fee of 3%.

Bank of China still offer tracker rate mortgages through brokers at 4% with arrangement fees of 1%. Potential investors will need a 35% deposit to access this deal.

4th September 2009

Trinity Financial have seen mortgage lenders reduce the cost of their mortgages this week in an attempt to win more business. A reduction in the cost of funding has allowed banks such as the Halifax, Alliance and Leicester (A&L) and Cheltenham & Gloucester to reduce many of their fixed rate mortgages. Cheltenham & Gloucester has introduced a new range of fee free deals.

The Coventry Building Society have the cheapest two-year fixed rate at 3.95%, but you must have either a 50% deposit or 50% equity in your property to remortgage. There is a free property valuation and a free legals service if you are remortgaging. The arrangement fee for this mortgage is £999. Alliance and Leicester have the lowest two-year fixed rate at 3.98% for those with a 30% deposit. It has an arrangement fee of £999 and a maximum loan size of £999,999.

Aaron Strutt, a broker at Trinity Financial Group, says: “The Nationwide Building Society have the lowest three-year fix at just 4.58%. It is available to those with a 40% deposit and for loans up to £1,000,000. There is an arrangement fee of £995, a free property valuation and legals service if you are remortgaging. Borrowers with a 30% deposit can access Abbey’s three-year fix at 4.78%. This has a £995 fee.”

Five-year fixes are not as competitive as they were a few months ago. Nationwide have a 5.58% mortgage with a £995 fee if you have a 40% deposit and The Nottingham have a 5.59% mortgage for those with a 20% deposit. This has an arrangement fee of £995 and a free property valuation.”

Tracker rates are still offering excellent value for money to those with a substantial deposit. The Nationwide Building Society have a two-year tracker at 3.08% with a £995 fee up to 60% loan to value and A&L have a two-year fully flexible tracker at 3.09% up to 70% loan to value (ltv). The maximum loan size is £350,000 and the arrangement fee is £995.

4th September 2009

Interest rates in the Eurozone are staying at 1%, the European Central Bank announced yesterday.

The last cut was made in May this year, when rates were reduced from 1.25% to  their current record low.

4th September 2009