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Trinity Financial has secured access to a new two-year fixed remortgage rate at 2.45% and it has a low £499 arrangement fee. The mortgage is available to borrowers with 50% equity in their property and the maximum loan size is £1.5 million. The lender will pay for the property valuation and legal fees if you switch to them.

Clydesdale Bank offers a fantastically low three-year fixed rate at 2.89% and if the mortgage is below £500,000 – the arrangement fee is £999. For loans between £500,001 and £2 million the arrangement fee increases to £1,499. Borrowers will require at least 40% equity in their home.

Accord Mortgages has one of the most competitive five-year fixes at 3.39%. The arrangement fee is £1,995 and borrowers will require 25% equity in their property.

28 October 2011

Woolwich has made a return to the 90% loan to value mortgage market after an absence of approximately three-years. The bank has extended its mortgage range to include rates for borrowers with a 10% deposit, rather than the 15% deposit previously required.

There are a number of lenders offering mortgages to those with a 10% deposit, but the rates are not always competitive. The new Woolwich deals are likely to appeal to homebuyers, especially as they are reasonably priced and have low arrangement fees.

Aaron Strutt, a broker at Trinity Financial, says: “Woolwich has a three-year fixed rate at 4.99% and it does not have an arrangement fee. The five-year fix is more expensive at 5.49% and there is a £499 arrangement fee.

“Woolwich is one of the UK’s largest mortgage lenders and they have taken their time to re-enter this market – but it is a positive sign that they are back.

“They are one of the most generous lenders for lending on new-build properties and the maximum loan to value continues to be 85%.”

Nottingham Building Society has one of the lowest two-year fixes at 5.19% and it has a £999 arrangement fee. It is available to borrowers with a 10% deposit and there is a free property valuation.

October 28 2011

The number of property sales of more than £1million has reached its highest level since 2007 and outperformed the rest of the market, up 10% in the first half of 2011, according to Lloyds TSB.

Lloyds found that there were 3,375 million-pound property sales in the first half of the year, equivalent to 19 sales a day, and up from 3,075 for the same period of 2010.

The 10% increase in million-pound sales compared to a 9% fall in the overall residential property market. Sales on million-pound properties in London made up only 5.7% of all sales in the capital.

Suren Thiru, housing economist at Lloyds TSB, said: “The number of homes sold for at least £1million has increased significantly over the past year in marked contrast to the rather more subdued picture across the rest of the housing market.

“Strong demand from wealthy cash rich buyers both in the UK and from overseas, as well as limited supply of such properties has helped to boost the level of activity at the very top of the housing market.”

28 October 2011

Banks and building societies have been making more buy to let mortgages available and there are some great options to choose from – as long as you have a good deposit.

Trinity Financial has access to two-year fixed rate at 5.99% for investors with a 15% deposit. It is available exclusively through the Kent Reliance Building Society and the arrangement fee is 1% of the loan amount.

Very few lenders offer buy to let mortgages if you have at 15% deposit, but there are more options if you can raise a 20% deposit. For example, The Mortgage Works offers a two-year fixed rate at 4.99% and it has 3% arrangement fee.

The number of buy-to-let mortgage products on the market has increased by 104% over the past three years, from 237 in October 2008 to 483 today, according to analysis by Defaqto.

Northern Rock is running a promotion where they will give £750 cash-back on completion on any of their buy to let mortgages.

Godiva Mortgages has some of their cheapest and most initiative mortgages. They have just launched a range of fixed rates that are fully flexible and early repayment charge free.  Their two-year fix at 3.99% has a £950 arrangement fee and a free property valuation and no charges for repaying the mortgage early.  They also offer a unique flexible tracker rate at 3.99% which is capped at 4.99% – it has a £995 fee and a free property valuation.

Paragon Mortgages and The Mortgage Works have a range of more complex mortgages. Both lenders target professional landlords and cannot be accessed directly by borrowers.

28 October 2011

The Association of Mortgage Intermediaries is predicting gross lending of between £130bn and £135bn in 2012.

In its latest Quarterly Economic Bulletin it says gross mortgage lending in 2011 is set to match £136.3bn in 2010, but will fall to between £130bn and £135bn in 2012.

The report says “Insufficient equity blocks the market because tighter lending criteria means many borrowers end up without the borrowing capacity to get a mortgage. Someone who bought at 85% loan to value in 2007 would now have only around 5% equity, nothing like enough to remortgage or move up the housing ladder.”

28 October 2011

Homeowners should be offered longer term mortgages, according to housing minister Grant Shapps.

Speaking at the Building Societies annual seminar, Mr Shapps is quoted as saying: “In today’s uncertain world, people want to know where they stand. Yet when it comes to buying a home, there are no mortgages available where they can fix their payments for a long time – the longest fixed rate for many is five-years.

“Longer term mortgages – possibly as long as 30 years – could help families on tight budgets know exactly where they stand when they’re buying a home, by giving them greater certainty over how much they will be paying for their home in years to come.”

Aaron Strutt, a broker at Trinity Financial, says: “You would have to be very brave to take a 30-year fixed rate mortgage.

“Borrowers have to prove their income when they port their mortgage and the banks’ lending criteria constantly changes. If you were on a long term fix and you wanted to move home or borrow more, there is real chance an application would be refused a number of times over 30-years. You could be stuck in your home.

“Some lenders offer ten-year fixes and I think that this is a more sensible duration if you want a longer term mortgage.”

20 October 2011

The Bank of Scotland and The Mortgage Business have increased their standard variable rates from 4.84% to 4.95% with effect from November 1 2011.

Both brands are owned by Lloyds Banking Group and are closed to new mortgage business.

A spokesperson for Lloyd’s group is quoted as saying: “Bank of Scotland and TMB have written to customers to inform them that their standard variable rates are increasing by 0.11%.

“The 0.11% increase in rates equates to an average change of around £10 a month for customers. This change reflects both an increased cost of funding and the higher capital costs of operating these mortgages.”

Three-month Libor affects the pricing of variable rate mortgages and it has been creeping up. It is now at the highest level seen since July 2009.

Up to 175,000 mortgages customers will see their monthly repayments increase.

20 October 2011

The minutes from October’s Bank of England Monetary Policy Committee meeting show that all nine members voted for an additional £75bn of quantitative easing. The members also voted to keep base rate on hold at 0.5%.

The minutes say: “There was considerable uncertainty over the scale of asset purchases necessary to keep inflation at target in the medium term. Depending on developments in the euro area and financial markets, the size of the stimulus could be adjusted in either direction.

“For some members, the substantial downside risks pointed to injecting a larger monetary stimulus than otherwise in order to place the UK economy in a stronger position were those risks to materialise.”

Jonathan Loynes, chief european economist at Capital Economics, said: “In the end, though, the bleak run of news on both the domestic and global economies clearly persuaded all members of the need to act without delay.

“Admittedly, the committee had not seen yesterday’s higher than expected CPI figures at the meeting. But we doubt that they would have had an influence on the decision, given that inflation is very close to a peak and should soon start to fall sharply.”

Source: Mortgage Strategy

20 October 2011

The private rental sector may soon not have enough properties available to satisfy demand, according to the Association of Residential Letting Agents (ARLA).

In a survey of 6000 members of ARLA, 74% of respondents said demand outstripped supply in the private sector, the highest level since records began.

Tim Hyatt, president of ARLA, said: “The UK cannot rely on the rental sector to support the housing market in perpetuity.

“The reality is that there is a limited amount of rental property and, unless both housing supply and mortgage availability improves, renters will find that their options in the market are reduced.”

20 October 2011

1.8 million mortgage holders whose fixed-rate deals have ended are paying about £2,600 a year less on their lender’s reversionary variable rates – than when they were on a fixed deal. According to research published today by the Council of Mortgage Lenders.

20 October 2011

Monthly private rental costs now account for almost half of the British family’s take home pay, as rents hit record levels in September, FindaProperty.com has said.

Their research showed that the average monthly rent rose by 1.6% in September, taking the typical asking price for rent to £890 a month.

Findaproperty.com said that the increase means that a typical renting household can expect to spend 46.2% of their monthly net earnings on accommodation.

20 October 2011

Approximately 70% of Trinity Financial’s clients are currently purchasing properties rather than remortgaging, and the increase is being driven by the low house purchase mortgage rates.

More of our clients are aware that rates are at a record low and that a good deposit will enable them to access some great mortgages.

Fixed rate mortgages do not get much cheaper than the Leeds Building Societies two-year deal at 1.99%. The arrangement fee is £1,999 and the lender asks for a 30% deposit, they will lend up to £750,000.

Northern Rock has launched some exclusive mortgages and they are not available on the high street. Trinity has access to their lowest two-year fix at 2.55% and the arrangement fee is £995. They require a 30% deposit.

13 October 2011

Over half of the people in the UK would consider building their own home if they had the opportunity, according to the Building Societies Association.

The majority were attracted by the chance to have control over the design and the ability to build more cheaply than buying on the open market.

The top three barriers to stop self builds, include: the potential for it to be too expensive, the availability of suitable land and the difficulty of getting planning permission.

Trinity Financial has a wealth of experience helping our clients to secure self-build mortgages. We have worked with a range of lenders and can often get cheaper rates than high street lenders.

Kevin McCloud, presenter of Channel 4’s Grand Designs programme, said: “Times are hard and the looming difficulties of finance, land and the loneliness of the long-distance self-builder puts most people off. Helping people over the hurdles will need a concerted effort by local authority planning departments, developers, housing associations and mortgage companies. But the signs are there that we could see a lot more assisted self-build and community self-build in the UK.”

2,051 people were surveyed.

13 October 2011

Monetary Policy Committee member David Mills says that it is unlikely the Bank of England base rate will change in the next few months.

In a speech at the Royal Economics Society, Mr Miles is quoted as saying: “Judging by money market interest rates and yields on short dated government bonds – the market expectation is that Bank Rate will not change for many months yet.”

Referring to the effects of the Bank of England asset purchases during 2009/10, Mr Mills says: “A range of estimates suggested that the asset purchases had about the same effect as a cut in Base Rate of between 150 basis points and 300 basis points, increasing GDP by about 1.5% to 2%.”

13 October 2011

A fraud prevention scheme has been launched by a mixture of public, private and voluntary organisations. They have joined forces with the aim of significantly reducing financial fraud by 2015.

Bodies involved in the initiative include: the Financial Services Authority, HMRC, the Home Office, the Serious Fraud Office, the Building Societies Association and the Council of Mortgage Lenders.

13 October 2011

The Scottish government has allocated an extra £4.65m of funding to its scheme to help those on low income get on the housing ladder. Its Open Market Shared Equity Scheme has had its budget increased to £9.4m and will help over 250 people buy their first homes.

13 October 2011

Buy-to-let mortgage rates have fallen by up to 0.92% in the past year, according to research by Defaqto.

The average two-year fixed rate buy-to-let mortgage at 75% loan to value has fallen from 5.78% in September 2010 to 4.86% in September 2011, and the average arrangement fee has fallen to £2,492. The average five-year fix is now 5.69% with a £1,956 fee.

Aaron Strutt, a broker at Trinity Financial, says: “Buy-to-let rates are certainly cheaper than they were and more lenders offer incentives to take their mortgages.

“Northern Rock will give investors £500 cash back if they take out one of their two-year fixes at 3.65%.  They would require a 40% deposit and the arrangement fee is 2.5% of the loan amount.

“Godiva Mortgages has a low two-year fix rate at 3.99% with a £950 arrangement fee. The mortgage is flexible and it has a free property valuation. They do ask for a 35% deposit.”

13 October 2011

Leeds Building Society has launched what is thought to be the lowest ever two-year fixed rate at 1.99%. The arrangement fee is £1,999.

The rate is available to borrowers with a 30% deposit and the maximum loan is £500,000. Mortgages above £500,000 have a 1% arrangement fee.

Aaron Strutt, a broker at Trinity Financial, says: “The Leeds two-year fix is as cheap as many of the lowest tracker rates available in the market. The margins between the lowest fixes and base rate trackers is getting smaller.”

Last week, Woolwich increased its tracker rates and its lowest two-year fix at 2.48% – available up to 70% loan to value with a £1,999 fee – is now cheaper than its comparable two-year tracker rate of 2.49%.

7 October 2011

The Bank of England’s Monetary Policy Committee has increased its Quantitative Easing programme by £75bn to £275bn, and kept interest rates on hold at 0.5%.

The news release from the Bank of England, says: “The pace of global expansion has slackened, especially in the United Kingdom’s main export markets. Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world threaten the UK recovery.”

Minutes from the MPC’s September meeting showed Adam Posen had called for a further £50bn of Quantitative Easing and all nine members voted to keep interest rates on hold at 0.5%.

The previous change in base rate was a 0.5% reduction on 5 March 2009. The programme of asset Quantitative Easing was initiated on 5 March 2009 and the previous change in the size of that programme was an increase of £25bn to a total of £200bn on 5 November 2009.

The following links show the letters sent between George Osborne and Mervyn King:

http://www.bankofengland.co.uk/monetarypolicy/pdf/govletter111006.pdf

http://www.hm-treasury.gov.uk/d/chx_letter_061011.pdf

7 October 2011

The credit ratings agency Moody’s has downgraded the senior debt and deposit ratings of 12 UK banks and building societies.

Moody’s says that it has made the reductions because it believed British financial institutions would not necessarily get the support from Government if they ran in to further trouble.

In a statement Moody’s said: “The downgrades have been caused by Moody’s reassessment of the support environment in the UK which has resulted in the removal of systemic support for seven smaller institutions and the reduction of systemic support… for five larger, more systemically important financial institutions.”

Some banking giants have had their ratings cut, including: Two-notch reductions for Royal Bank of Scotland and Nationwide Building Society. Also, Lloyds TSB and Santander have both been reduced by one-notch.

Shares in RBS and Lloyds fell at the start of trading, but then recovered. By early morning RBS shares were down 0.25% while Lloyds was 1% lower.

The Chancellor, George Osborne, told the BBC: “One of the reasons they are doing this is because they think the British government is actually moving in the direction of trying to get away from guaranteeing all the largest banks in Britain.

“People ask me how are you going to avoid Britain and the taxpayer bailing out banks in the future? The government in taking steps to do that.

“Therefore credit rating agencies and others will say, well actually these banks have got to show they can pay their way in the world.”

Moody’s also cut its rating on nine Portuguese banks.

7 October 2011

Trinity Financial has secured access to the Hanley Economic Building Society’s 95% loan to value rate.

Very few lenders offer mortgages for borrowers with a 5% deposit and the Hanley’s mortgage is a three-year discounted rate at 4.75% and there is a £499 arrangement fee. For direct customers the mortgage is available in the Staffordshire area but through Trinity Financial the mortgage is available nationwide. The maximum mortgage is £250,000.

Aaron Strutt, a broker at Trinity Financial, says: “We also have access to the Skipton Building Society’s two-year fix at 5.99%. Borrowers will need a 5% deposit and the maximum loan is £300,000 – the arrangement fee is low at £195.

“Hanley have just started their financial year and is looking to do the majority of its lending in the first six month period.”

7 October 2011

The cost of the average two-year fixed rate at 90% loan to value has fallen to 5.39%, its lowest rate since January 2008, according to Moneyfacts. This compares to an average rate of 6.05% six months ago and 5.97% a year ago. The average two-year fixed rate is now 3.82%.

7 October, 2011