The Bank of England may have held base rates yet again but lenders have been far more active, launching a string of new mortgages and rate cuts this week.
Clydesdale Bank has launched two new mortgage deals exclusively for the broker market, while NatWest, Leeds Building Society, Barclays and HSBC have all cut rates.
Clydesdale Bank launches two new mortgage deals exclusively to the broker market, available from today.
The new deals are a fee-free buy-to-let fixed rate and a new LTV tier of Clydesdale's discounted offset product for residential buyers.
The two-year fixed rate buy-to-let mortgage charge is 3.89% fixed for two years, available up to 75% LTV. There is an early redemption charge (ERC) of 3% in year one falling to 2% in year two, but no arrangement fee.
The residential discount offset mortgage charges 3.09% up to 70% LTV, with ERCs of 3% in year one and 2% in year two. The deal carries a £999 arrangement fee.
John Tooth, head of B2B Mortgage Strategy & Distribution at Clydesdale Bank, said: "The broker channel is important to us, so I'm delighted to introduce these new products. These new deals are another way in which we are supporting customers and investing in our broker channel."
Leeds Building Society has reduced the rates on its two, three and five-year fixed rate mortgages by up to 0.37%. It has also responded to demand from the intermediary market to offer a two-year ‘Welcome Mortgage’ with the option of paying 0% for the first three months, and making the remaining payments at a fixed rate.
NatWest Intermediary Solutions has slashed its race across a number of deals from today, including three-year and five-year fixed rates up to 90% LTV. Its 4.99% five-year fix to 90% LTV has been cut to 4.85%, with a £995 product fee.
On Wednesday, Barclays expanded its Great Escape mortgage offering to cover customers with smaller loans of between £50,000 and £100,000. It also launched four new fee-free fixed-rate mortgages for purchasers, starting at just 2.69% fixed for two years up to 70% LTV, or 2.99% fixed for five years up to 60% LTV. Barclays also launched a new range of tracker mortgages without any early repayment charges, starting at a variable 2.49% for a two-year tracker and 3.49% for a lifetime tracker, both up to 70% LTV.
HSBC's rate cuts, effective from today, include an eye-catching 1.49% two-year fixed rate, with a £1,999 fee.
Recent lender activity contrasts to the Bank of England's Monetary Policy Committee inactivity in holding rates and maintaining the threshold for quantitative easing, says Simon Gammon, head of Knight Frank Finance.
“We are seeing increasing numbers of homeowners switching from SVRs back onto fixed-rate deals. Some of the best five-year fixed-rate mortgages are now competing with SVRs, with rates of around 2.44% or 2.45% for those who have a 40% equity stake in their home. Borrowers with an LTV of up to 75% can secure loan deals at less than 3%. Given that the markets are factoring in a base rate rise well before 2018, which will lead to an increase in SVR rates, these fixed-term deals seem even more attractive. Now is a great time to review your borrowing arrangements.”
Comments