Mortgage roundup – enhancing the homebuying journey

This week’s mortgage roundup is all about simplifying the homebuying journey, with a new partnership formed to streamline the buying process and a new brokerage launched for struggling first-time buyers. Meanwhile, new and ambitious products launch at CHL Mortgages, The Mortgage Lender and Furness.

New year, new partnership, new buying journey

Mortgage advice firm Mortgage 1st and estate agent British Home Sellers have formed a partnership to enhance the homebuying journey for their customers.

Through the new collaboration, users can find a property through British Home Sellers and speak to an adviser at Mortgage 1st – who will then provide them with an AIP in a matter of minutes.

Mortgage 1st and British Home Sellers then continue to work together until completion. This reassures their mutual customers that they are in safe hands.

Both firms share the same values in that their customers and team members are at the forefront of their strategy. By creating friendly, supportive, and exciting places to work, they both attract passionate individuals who thrive on delivering great customer service.

Jon Stones, managing director at Mortgage 1st, comments: “We are delighted to be working alongside the team at British Home Sellers as they completely share in our vision for providing customer excellence and are a dynamic, forward-thinking business like ourselves.”

Alex Clendon, property manager at British Home Sellers, adds: “The speed of communication and expertise from Mortgage 1st has been fantastic and improves the service we can provide to both buyers and sellers.”

“Their usage of smart technology, combined with experience and a lovely team yields amazing results for customers.”

New mortgage intermediary launches for budding FTBs

A new independent low-deposit mortgage specialist Home me, has launched with the aim of bringing ‘a new dimension’ to the UK mortgage industry.

Home me is a whole market broker, and aims to help borrowers with smaller deposits access mortgages. It specialises in boosting mortgages and offers a one-stop-shop to help home buyers get more for their money and buy smarter at a time when the average cost of a property is soaring compared to the average wage.

Director of Home me, Bulent Kandemir, says: “Our mission is to help people to get out of renting and into homeownership.”

“We believe there is a great opportunity not just to help people find the best mortgage deal, but to help them access funds that can make the difference between buying their first property and buying their first home.”

“Home me understands that people's buying power increases as they gain more experience and years in their jobs, however, they increasingly miss the boat with the property market.”

“We are constantly hearing the feedback from people that after taking years to save a deposit to buy a property in the desired location, property prices have moved up again, meaning buyers have to save further for an even bigger deposit and the wait to own a property just gets longer and longer.”

Home me was set up by Intra Private Finance Ltd specifically to service the needs of those buyers with low deposits.

The broker aims to lend £200 million in its first year, which will support around 500 property buyers.

CHL Mortgages launches its first seven-year fixed-rate BTL

Intermediary-only specialist BTL lender CHL Mortgages has extended its offering with a range of new deals, including a seven-year fixed-rate product range.

The lender has also increased its maximum loan-to-value (LTV) for individual and limited company borrowers at 80% (from 75%).

It says these additions will complement its current specialist BTL proposition.

The seven-year fixed rate for individual and limited company applicants comes with two fee options. Up to 75% LTV, the 2% fee option is 3.25% and the 1% fee option is 3.45%. Up to the new maximum 80% LTV, the 2% fee option has a  rate of 3.64% and the 1% fee option has a rate of 3.79%.

Meanwhile, the seven-year fixed rate for houses in multiple occupation (HMO) and multi-unit freehold block (MUFB) purposes are available up to 75% LTV and also come with two fee options. The 2% fee option has a rate of 3.45% and the 1% fee option has a rate of 3.65%. All the 7-year fixed products have an early repayment charge of 5/5/5/4/3/2/1.

In addition, new two-year and five-year fixed rates up to 80% LTV are now available to both individual and limited company applicants with rates of 3.69% (2-year) and 3.49% (5-year) with a 2% fee. A 1% fee option is also available at 4.19% (2-year) and 3.69% (5-year). All the 5-year fixed rates have an early repayment charge of 5/4/3/2/1.

The interest coverage ratio (ICR) is calculated at the pay rate on all five-year and seven-year products. 

The full CHL Mortgages product range caters for first-time landlords, portfolio landlords and limited companies covering a variety of BTL investments including HMOs and MUFBs.

Ross Turrell, commercial director at CHL Mortgages, comments: “These products will nicely complement our existing buy-to-let range. They have been designed after listening to, and acting upon, feedback from intermediary partners who expressed a desire for additional choice and support when it comes to servicing the longer-term needs of their landlord clients in an uncertain interest rate environment.”

“Choice is important when it comes to the length of product terms but also when it comes to delivering competitive products at the higher end of the LTV bands. These new additions provide great value to our overall product range.”

The Mortgage Lender announces new BTL mortgage rates

The Mortgage Lender has announced rate cuts to its Buy to Let (BTL) product range.

The real-life lender has re-priced its five-year fixed 75% LTV Cashback & Fees Assisted products, with rates now starting at 3.33% for standard properties and 3.45% for HMOs.

Both come with a free valuation and either free legal services for purchases or £500 cashback for remortgages.

Rates have also been reduced for the lender’s five-year Cashback & Fees Assisted 80% LTV product, with rates now at 4.05%. The product also comes with a free valuation and either free legal services (purchases) or £500 cashback (remortgages).

In addition to the product re-prices, The Mortgage Lender has launched a new five-year 70% LTV High Fee mortgage at a rate of 3.20%. The product comes with a completion fee of £2,495.

Steve Griffiths, sales & product director at The Mortgage Lender, comments: “We endeavour to give borrowers, whether they are buying or remortgaging, access to products that are straightforward in design and transparent on all fees.”

“Along with attractive incentives, our range of fixed-rate mortgages and fee variations accommodate different customer needs, helping provide more borrowers with flexible and competitive products. The re-price reflects our continued desire to offer brokers innovative solutions for borrowers.”

New competitive ERC-free products launched by Furness

Furness has announced the launch of two market-leading two-year discounts available across England, Scotland and Wales.

The products are said to be priced at a ‘highly competitive’ 0.89% for cases up to 60% LTV, and 1.19% for cases up to 80% LTV.

The low rate means clients can keep their monthly repayments as low as possible and with no ERC they have the flexibility to move to a fix later if rates get too high.

Both products carry a £1,699 fee which can be paid upfront or added to the loan.

As further benefit to customers, both products carry a free standard valuation package for purchases and for clients wanting to remortgage, there is a standard incentive package of free valuation and legal fees for cases in England and Wales.

For cases in Scotland, a contribution of £150 towards legal fees will apply.

DIPs and applications for the new products are welcome from both purchasers and those looking to re-mortgage and can be submitted via the Society’s online submission system.

What’s more, an experienced underwriting team, who work closely with brokers on a daily basis, will individually assess all applications.

Alasdair McDonald of Furness for Intermediaries says: “As the cost of living creeps up, we want to help give your clients some peace of mind by keeping mortgage payments as low as possible.”

“Our new products come with highly competitive rates and, with no ERCs, your clients can rest easy knowing they can switch to a fixed deal if the rates get too high.”