Britain’s oldest building society The Chesham agreed to be taken over by the much larger Skipton Building Society yesterday. The Skipton have 830,000 members and have just announced pre-tax profits of £63.5 million. The Chesham was founded in 1845 and have 20,000 members. They have three branches - in Chesham, Aylesbury and Little Chalfont - which Skipton say will remain open for at least 12 months.

The takeover has not yet formally been agreed by the Chesham’s members or the Financial Services Authority.

This is the second deal in a year for Skipton after they announced a tie-up with the Scarborough Building Society. They will add another £230 million worth of assets after the Chesham acquisition. 

February 26, 2010

The Sunday Times  -  February 21, 2010

The market leading buy-to-let mortgage rate that Trinity Financial secured access to has been changed slightly this week.  The rate is still remarkably low at 3.405% and is still available to investors with a 40% deposit. The arrangement fee is 1.25% of the loan amount and the penalties for repaying the mortgage early are 1% within the first two-years. This mortgage is also available to limited companies.

The Mortgage Works (TMW) has made a return to limited company lending with a range of three mortgages. Many mortgage lenders have massively scaled down lending to companies over the last two-years and it is a positive sign to see mortgages being made available.  TMW also made reductions to their standard buy-to-let mortgage rates by up to 0.3%.

The Leeds Building Society changed the criteria to access their standard variable rates this week by introducing two tiers. The arrangement fee now changes depending on the amount an investor needs to borrow and, to qualify for the mortgage, they must now earn a minimum of £20,000 per year. The rate is still 5.79% variable, but the fees are more expensive. Loans up to 60% of the property value have a £999 arrangement fee and loans above between 60% and 70% ltv have a £1549 fee. These arrangement fees are very competitive compared to the rest of the market.

February 18, 2010

The number of jobless in the UK rose by 232,000 to 2.26m people in the three months to April, after a slight moderation in the rate of increase still brought unemployment to 7.2 per cent.

This compared with a jobless rate of 6.3 per cent at the end of December. The rise, still the second biggest increase since 1981, compared with an additional 244,000 unemployed in the previous three-month period.

Source - Office for National Statistics

28 May 2009

Consumers are becoming more optimistic that house prices will rise over the coming year, research from The Building Societies Association suggests.
The BSA’s Property Tracker survey found that among 2,242 respondents the average prediction for house price changes over the next year was for a 1.4% rise, a massive climb down from the 7.1% fall forecast in June last year.
Some 59% of those polled agreed or tended to agree that now is a good time to buy, significantly up from the 27% recorded at the same time last year.

28 May 2009

Three-month LIBOR - the rate at which many banks get a substantial amount of their funding from - has reached at record low of just 0.99%. Ten months ago three-month LIBOR was as high as 6.28% and many mortgage lenders were forced to withdraw their deals and/or even stop lending. The fall below 1% is the first time since the inception of the three-month LIBOR index on January 1 1986.

16 July 2009

Mortgage industry figures have revealed that intermediaries continue to lead the way in home loan lending. Data released by the Council of Mortgage Lenders, which drew on figures from the Financial Services Authority, showed that intermediaries accounted for 64% of the total value of lending in the first three months of 2009. Furthermore, in the same period, 70% of first time-buyer loans, by volume, came through intermediaries, up from 68% in the previous quarter.

17 July 2009

House prices in the UK increased in value for the third consecutive month in July, according to the Nationwide’s latest survey. House prices rose by 1.3%, taking the average value of a property to £158,871.

The rise marks three consecutive months of positive movement in the UK housing market. The three month on three month rate of change, which is widely considered as a reliable indicator of short term trends, has risen from 1% in June to 2.6% - the highest level since February 2007. While property prices are still 6.2% lower than they were 12 months ago, the annual rate of decline is falling steadily, having dropped by over 3% from June’s figure of 9.3%.

Prices have now risen by 1.3% during this year, raising hopes that house prices have finally stabilised. Martin Gahbauer, Nationwide’s chief economist, said: “There is now a reasonable chance that prices could end the year slightly higher than when they started. Only a few months ago, such an outcome would have appeared unthinkable.”

31st July 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

Trinity Financial has seen a host of mortgage lenders change their mortgage deals this week. The Woolwich increased their two-year fixes in an effort to reduce the amount of their mortgage business. While the Nationwide Building Society reduced the majority of their rates, by up to 0.5%, in an effort to get more mortgage business. Nationwide’s rate cuts are the first we’ve seen for a while from one of the largest mortgage lenders.

Aaron Strutt, a broker at Trinity Financial Group, says: “There really are some decent fixes around at the minute. Many of the very best fixed rates were available only to borrowers with a 40% deposit, but in recent weeks we have seen a change in this trend. The majority of lenders require a 25 to 30 per cent deposit to get their best deals. This is very welcome news and is a sign that things are heading in the right direction.The Nottingham Building Society still have the lowest two-year fixed at just 3.99%. This is available to those with a 30% deposit and it is accompanied by a fee of £1,495.  The Mansfield Building Society are still offering their two-year fixed rate at 3.99%. This mortgage has an arrangement fee of £999 and it is available to those with a 25% deposit.

“Abbey currently offer a two-year fixed rate at 4.18% with a maximum loan size of £1 million. This has a £995 fee and is available to those with a 30% deposit. If you are purchasing a property, Abbey will provide a free property valuation and £250 cashback. If you are remortgaging they will pay for the property valuation and the legal fees, providing you use one of their solicitors.”

The most competitive deal for those with a 15% deposit is through Abbey. They offer a four-year fixed rate at 5.84% with a fee of £495. This has a free property valuation.

Friday 7th August 2009

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 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

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

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 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

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

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

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

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

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

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

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

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.

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

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

Trinity Financial is starting to see more mortgages available to those with smaller deposits.  Just a few months ago the most competitive mortgage rates were available only to those with a 40% deposit. However, we are now seeing these mortgages available to those with a 30% or 25% deposit.

Northern Rock today reduced their two-year fixed rate for those looking to purchase a property.  Borrowers with a good credit score and a 30% deposit can now access a fully flexible two-year fixed rate at 3.75% with a £595 arrangement fee.  Northern Rock still look more favourably on those with outstanding credit card debt than many other lenders. This area of their lending policy has not changed recently.

Borrowers with a 25% deposit can access two-year fixed rates starting at 3.99%.

06th October 2009

The pick of the new mortgages is from Northern Rock. They now offer a two-year tracker rate at 2.79% for those with a 30% deposit.  The arrangement fee is among the lowest in the market at £595.  It is also fully flexible so borrowers can overpay their outstanding balance down to £1 and then borrow back any overpayments.    The Woolwich have also launched a term tracker mortgage at 2.79% and up to 70% loan-to-value. It has a £999 arrangement fee.  Woolwich will also pay the property valuation and legal fees if you are remortgaging.  Borrowers with a 25% deposit can access two-year tracker rates starting at 3.29%

Aaron Strutt, a broker at Trinity Financial Group, says:  “Northern Rock, The Woolwich and Abbey are the latest lenders aggressively cutting mortgage rates to try and get in more business. Many banks are not hitting their lending targets and, by cutting interest rates, they will attract more business.“

“More of our clients are starting to take out base rate tracker mortgages because the rates are so competitive. It is widely expected that base rate will stay low for the next couple of years and, while fixed rates offer borrowers payment security, there is a premium to be paid for this protection.

“Nationwide are still offering particularly good tracker rates that allow borrowers to switch in to a fixed rate without paying a penalty. Abbey’s tracker rates for homebuyers also cover the costs of property valuation and the standard legal fees. This is something unique in the market and only available through brokers.”

06th October 2009

Northern Rock has launched a range of market-leading fixed and tracker rates during a busy week of mortgage rate changes.

Nationwide, Abbey and Alliance & Leicester are some of the largest lenders to lower mortgage rates. However, Northern Rock has the really low mortgages. They now offer a market-leading two-year fixed rate at 3.69% for those looking to purchase a property. The rate rises slightly to 3.79% if you are looking to remortgage.

Trinity Financial can also secure their clients the lowest Bank of England base rate tracker mortgage on the market. If you are purchasing a property there is a rate of 2.69% and, if you’re remortgaging, that rises slightly to 2.75%. Longer term mortgages are also available, including a market-leading three-year fixed rate at 4.39% or a four-year fixed rate at 4.89%.

Northern Rock mortgages are available to those with a 30% deposit. There is a £595 arrangement fee if you are purchasing a property, or a £995 fee if you are remortgaging.

Aaron Strutt, a broker at Trinity Financial Group, says: “This has been a good week for mortgage payers. Northern Rock’s deals are particularly decent, especially as they are all fully-flexible and available up to £1 million. Many other lenders cap their maximum loans between £250k and £500k. Also, very few are can be re-paid down to £1. Northern Rock will also cover the cost of the property valuation and legals for those remortgaging.”

“Many banks have not lent as much money as they would have liked to this year, including Northern Rock. I am really looking forward to the next few months as more lenders fight it out to attract mortgage business as they try to hit their lending targets.”

16th October 2009

In a press release issued this morning by Nationwide’s Chief Economist, Martin Gahbauer, he said that house prices have risen for a sixth consecutive month in October. However, this trend is showing signs of moderating as we head in to autumn.

Martin Gahbauer goes on to say: “The price of a typical property was 0.4% higher on the month in October, compared to an increase of 0.9% in September and 1.4% in both July and August. The three-month on three-month rate of change - generally a smoother indicator of the near term trend – dropped back slightly from 3.8% to 3.4%. At £162,038, the average price of a typical property was 2% higher than a year earlier, representing the first time since March 2008 that the annual rate of change has been in positive territory.”

“Over the first ten months of 2009, the seasonally adjusted index of house prices has risen by 4.6%, though relative to the October 2007 peak it is still down by 13.1%”.

30th October 2009

Once again mortgage lenders have been cutting their rates as they try to ramp up their business levels. Northern Rock has made the most changes over the last few weeks. In total they have changed their rates five times and introduced exclusive broker deals.

Aaron Strutt, a broker at Trinity Financial Group, says: “When one lender announces that they are going to cut rates, it is generally not long before I see others doing the same. Nationwide, Abbey, RBS and Cheltenham and Gloucester have all cut rates this week.”

“Northern Rock have some very low fixes and trackers with sensible fees. They offer a two-year fix, via Trinity Financial, at 3.65% for house purchases or 3.69% for those remortgaging. The arrangement fees are £595 and £995, respectively. Both deals are available to those with a 30% deposit and for loans of up to £1 million.  Five-year fixes are also getting cheaper, with the lowest rates now being around 4.99%.

“We are now starting to see more lenders introduce low rates but with high fees, so check the small print of any low mortgage rate deal you see. Alliance and Leicester now offer a two-year fix at 3.15% for up to 70% loan-to-value with a 2% arrangement fee.”

Despite fixed rates being very low, borrowers are still paying a premium for payment security. Two-year base rate trackers now start at 2.69% - which is a fantastically inexpensive mortgage rate. With the average standard variable rate being about 4.5%, many borrowers are paying more than they need to and should look again at switching mortgages to achieve a lower rate.

We now see competition back in the market, which can only be good for those looking for a mortgage. Borrowers must be aware, though, that their credit score is more important than ever. Any missed payments on credit cards or mortgages will make it extremely tough to even get a mortgage.

30th October 2009

The Bank of England have said that mortgage approvals have risen to their highest level since March last year. The number of loans approved for house purchases amounted to 56,215 in September, up from 52,970 in August and significantly higher than the six month average of 48,221.

30th October 2009

There are now more mortgage lenders coming back in to the buy-to-let market and more mortgages available.

Investors will need at least a 30% deposit to access the lowest deals. The most keenly priced mortgages are available through lenders such as The Mortgage Works and Birmingham Midshires. The Whiteaway Laidlaw Bank (owned by the Manchester Building Society) also has some very attractive mortgages which start at 4.79%.

Trinity Financial has access to buy-to-let lenders which are linked to LIBOR, the rate at which banks lend to each other. With three-month LIBOR currently at 0.60%, we can access margins at 2.75% over LIBOR. Arrangement fees are as low at 1.25% and penalties for repaying the loan within the first two-years are just 1%.

06 November 2009

Mortgage lenders have continued to cut the cost of their mortgages this week, in particular two-year base rate trackers. Nationwide, Abbey and Alliance and Leicester have all made reductions. The largest cut was by Northern Rock. Their two-year tracker mortgages were reduced by up to 0.5%, ensuring they remained at the top of the best buy tables.

Aaron Strutt, a broker at Trinity Financial Group, said: “Northern Rock’s lowest rates were previously available only to those purchasing a property, but they have now stopped this unfair practice with their base rate linked mortgages. Their lowest two-year tracker is now 2.59% for those with a 30% deposit. The maximum arrangement fee is £995.”

“Abbey have cut the gap between themselves and Northern Rock. They now offer a two-year tracker rate at 2.69%. Their is a £995 arrangement fee and borrowers must have a 30% deposit. Abbey will also provide a free property valuation – free legals if you are remortgaging – and £250 cash back if you are buying a property.

“Fixed rates mortgages have remained pretty stable over the last few weeks. The lowest two-year fixed rate is 3.65% for those with a 30% deposit and this mortgage has a maximum arrangement fee of £995. This is an exclusive deal available though Trinity Financial Group. The lowest five-year fixed rates start at 4.99%.”

Northern Rock, the nationalised bank, said this week that they were now on course to hit lending targets for the year. Their mortgage lending had increased by £1 billion in the third quarter, taking its total lending in 2009 to £2.3 billion. One slightly disappointing statistic, especially for first-time buyers, was that the average loan to value on new mortgages was as low as 55%. Borrowers wanting a Northern Rock mortgage with a 15% deposit will need an excellent credit rating to meet the bank’s lending criteria.

November 06, 2009.

Abbey and Alliance & Leicester, both part the Spanish bank Santander, have once again cut the cost of their mortgages. This will be the 37^th time this year that Abbey have made changes to their mortgage rates.

The latest rates came in to effect yesterday. Alliance and Leicester launched an extremely low Bank of England base tracker rate at 1.99%. This mortgage does have a 2% arrangement fee but, for borrowers looking to keep monthly mortgage costs to a minimum, it could be very attractive. There is free property valuation and the mortgage is fully-flexible. Those looking to secure this mortgage will need a 30% deposit.

Nici Audhlam-Gardiner, Director of Mortgages at Abbey and Alliance & Leicester, said: “Our strong third quarter results show an estimated market share of 20.5 per cent.

“In October, we saw a 50% increase in our applications from home purchasers, versus the average monthly figure for the first half of 2009 and home purchase applications now account for 67 per cent of our total monthly applications. This is very encouraging and shows home buying is on the up. Our own research revealed that it’s now cheaper to buy than rent in all regions of the UK, except London.”

Abbey are still offering their Homebuyer Plus mortgages. These provide a free property valuation and free solictors. Rates are very competitive: a two-year tracker starts at 3.19% and a two-year fix at 3.99%.

November 13, 2009.

October’s gross mortgage lending was an estimated £13.5 billion, a 5% rise from £12.9 billion in September but down 27% on £18.5 billion in October 2008, according to the Council of Mortgage Lenders (CML). This is typical seasonal activity between September and October. The average monthly rise over the last decade has been 5%.

The October figures are in line with the CML’s forecast for gross lending of around £141 billion for 2009 as a whole.

20th November 2009

A year ago there were virtually no mortgage lenders offering exclusive rates via brokers. But we have now seen the market change and it is now slightly more normal. Alliance and Leicester have today launched two lifetime tracker mortgages. The lowest rate is down at 2.89% with a £495 arrangement fee and there is also the option of a fee free mortgage at 2.99%. Both deals require a 30% deposit.

Northern Rock may have increased the cost of some of their five-year fixed rates from 4.99% to 5.39%. However, they have not changed the two-year fixed rate through Trinity Financial. Those looking to buy a property can still fix for two-years at 3.65% and anyone wanting to remortgage may still be able to swap in to a fixed rate at 3.69%. The arrangement fees are £595 and £995, respectively, and both mortgages require a 30% deposit.

Platform Home Loans, owned by The Co-operative Bank, have a two-year tracker at 2.79%. This deal is unique because it has a 1% minimum base rate.  The Bank of England base rate would have rise by 0.5% before the pay rate would rise. A 30% deposit is required and there is a £995 arrangement fee.

One further fixed rate we have access to is available only to existing Abbey current account holders.  The rate is fixed for two-years at 3.59%. There is a £995 arrangement fee and a free property valuation and legals service if you want to remortgage.  The maximum loan is £1 million and you will need a 30% deposit.

20th November 2009

Kensington Mortgages has announced that they are coming back in to the mortgage market with a two-year fixed rate at 5.69%.    Aaron Strutt, a broker at Trinity Financial Group, says:  “This two-year fixed rate may seem high and with its £1,299 arrangement fee be pretty uncompetitive, but it is not designed to compete with the high street lenders.

“Kensington say that applicants will not be credit scored. They will be credit searched instead. Some borrowers are refused a mortgage because there credit score is not high enough, and this can be for a number of reasons, such as a lack of credit history. Kensington will credit search applicants to make sure that they have not had any CCJ’s or missed mortgage payments in the last two-years.

“For borrowers that have not been able to get a mortgage from the high street banks, it could be worth trying Kensington. We have access to this exclusive deal.”

November 26, 2009.

Many of the lowest buy-to-let mortgage rates are accompanied by percentage based arrangement fees which can be as high as 3.5% of the loan amount. Trinity has access to mortgages that are linked to LIBOR rate. This means that we can arrange mortgages for buy-to-let investors at 2.75% over LIBOR, which would currently have a pay rate as low as 3.3375%.

The arrangement fee attached is one of the lowest in the market at 1.25% of the loan amount. Investors would need a 40% deposit to access this rate and it may also be possible to lend to limited companies.

November 27, 2009.

The Bank of England base rate was held at 0.5% at midday today. The previous change in Base Rate was an 0.5% reduction on March 5, 2009.

It is widely expected that the base rate will stay 0.5% well in to the new year.

December 9, 2009.

The Nationwide Building Society have announced that they will cut their mortgage rates by up to 0.29%. Nationwide had not been quick to lower rates over the last few weeks. They will hope that, by making this cut, they will be further up the mortgage best buy tables.

Abbey and Alliance and Leicester have again made changes to their mortgages. Abbey have introduced a three-year fixed rate at 4.89%, which is available via brokers and designed to get borrowers to remortgage off of standard variable rates (SVR).

Some of the smaller building societies have been increasing their rates. Two weeks ago Accord Mortgages wrote to their members to tell them that the standard variable rate was being increased to 5.99% from 5.34%. With market conditions still difficult for many lenders, we could see more SVR hikes over the coming months.

Abbey have also increased the maximum loan sizes from £250,000 to £550,000 on many of their 85% loan-to-value mortgages.

There are some excellent mortgage deals available at the moment. However, it is unlikely that many of them will get much cheaper. When a particularly low rate becomes available it is important those looking for a mortgage quickly take advantage of it.

Aaron Strutt, a broker at Trinity Financial Group, says: “Many of the market leading two-year fixed and tracker rates are as low as they are going to go. More mortgage lenders have been cutting short term rates and the average two-year fixed rate is now 4.86%.

“Base rate tracker mortgage continue to offer the best value for money. Trinity Financial can access rates as low as 1.99%. This is great value for money, especially for those who want to keep monthly costs to a minimum. The lowest two-year fixed rate we can access is 3.15%.

“Despite the cost of longer term mortgages not being as competitive as they have been, there are still options available. Trinity Financial can access the lowest five-year fixed rate in the market at 4.89%. This is available to those with a 20% deposit and a clean credit history. The arrangement fee is a very competitive £588.”

December 14, 2009.

Virgin Money intend to offer mortgages to the UK retail banking market after buying Somerset-based bank The Church House Trust.

There has been talk that Sir Richard Branson wanted to buy a bank for the last couple of years and this will give him the platform to offer savings and mortgage products. Virgin will pay £12.3m for the bank and invest a further £37.3m.  Previously, Virgin Money teamed up with other banks such as Royal Bank of Scotland and Bank of America as they did not have a banking licence.

Sir Richard Branson said: “The Church House Trust business offers us a strong platform for growth.”

January 8, 2010.

This week more buy-to-let lenders have announced that they are re-entering the investment market. Clydesdale Bank now offers a two-year fixed rate at 5.99% with an arrangement fee of £1499. It is available to those with a 30% deposit. Godiva Mortgages, owned by the Coventry Building Society, have re-introduced a choice of two mortgages for those with a 30% deposit with rates starting at 4.99%.

Trinity Financial is expecting to see more lenders come back into the buy-to-let mortgage market during 2010. The Mortgage Works and Birmingham Midshires are particularly keen to lend, but do not want to be seen as the only major players.

We will see more competition when more lenders return. Arrangement fees will start to get lower and loan-to-values increase.

January 8, 2010

Abbey as a brand will be available only to borrowers who come through intermediaries. It has been announced that the 1000 high street branches of Abbey and Bradford and Bingley will be known as Santander by the end of January.

Since the unified brand was introduced in 2005, Santander has rebranded in all of its key markets, including Spain, Portugal, Germany, Brazil, Mexico, Chile and Argentina.

January 15, 2010

Many of Trinity Financial’s clients have come to the end of their fixed or tracker rates and are now sitting on their lenders’ standard variable rate. Borrowers paying a rate of over 4% may be able to reduce their mortgage payments by switching to other banks.

Some of the largest lenders have un-competitive standard variable rates, such as: Abbey at 4.24% and Northern Rock at 4.79%.

Below is a table showing some of the largest banks and their standard variable rates. This may help you see how competitive your present rate is:

The Skipton Building Society, the UK’s fourth largest building society, has announced that they will raise their standard variable rate from 3.5% to 4.95% on 1 March.

Around 60,000 Skipton customers expect their rate to be no more than 3% over Bank of England base rate. However, a condition in their mortgage offer states that this rate can be changed in “exceptional” circumstances.  One possible circumstance is if base rate is less than or equal to 2.7%.

Aaron Strutt, a broker at Trinity Financial Group, says: “This payment shock will force many of Skipton’s customers’ into remortgaging.  Luckily there are some excellent mortgages for them to switch to with the lowest tracker rates set at around 2.5%.  But, for those with less than 15% equity in their property, it will be difficult to switch to another mortgage provider. ”

“When a lender does something like this, the financially worse off will take the payment hike.”

January 22, 2010

Provisional figures from HM Revenue and Customs (HMRC) have also shown that 104,000 deals involving properties above £40,000 were completed in December. This was the first time since December 2007 that the number has risen above £100,000.

Nationwide’s latest house price survey said that the average house price rose by 1.2% in January this year. This means that the average price of UK home is £163,481, up from £162,103.

January 29, 2009

A host of mortgage lenders have either introduced more mortgages or lowered their existing mortgage rates this week. The largest lenders to make changes include: Abbey, Leeds Building Society and Cheltenham and Gloucester (C&G).

C&G lowered some of their fixes by up to 0.3%. Abbey introduced an extremely competitive range of fixed rate mortgages for borrowers with a 20% deposit, which start at 4.99%. They also provide a free property valuation and cash-back for those looking to purchase a property.

Leeds Building Society clearly plans to lend more money from the changes they have made. They have lowered the deposits required for many of their mortgages.

One exception to the rate reductions was the Coventry Building Society. They increased some of their market leading rates by around 0.2% and made them available only to borrowers looking to remortgage.

January 29, 2009