New mortgage products launched, including buy to let and a seven year fixed deal
A number of new mortgage products are now available since the Bank of England interest rate was increased including some that are lower, a seven year deal and options for landlords.
The most recent is seven year fixed rate residential mortgages from Skipton Building Society in a move designed to attract those who are looking for longer term security for their mortgage payments.
The Society has launched seven year fixes at 2.40% to 75% LTV with £995 fee, and a fee-free 2.65% to 85% LTV. Skipton is also reducing rates by up to 0.10% on its current on sale residential five year fixed purchase products at 85% LTV, starting at 2.14% with £1,995 fee and including a fee free 2.35% rate.
The Society is also launching a competitive range of three year buy to let and New Build products. The New Build purchase only products include a three year fix at 2.49% to 90% LTV with £995 fee and a fee free three year Tracker at 2.35% to 90% LTV.
‘Although bank base rates remain low, uncertainty remains high, so we are delighted to introduce these seven year fixed rate mortgages which are likely to appeal to borrowers who prioritise stability and prefer to have certainty over their mortgage payments for a longer period,’ said Kris Brewster, Skipton’s head of products.
‘With the possibility of future base rate increases, more people may prefer locking themselves into longer fixed rate deals to insulate themselves from potential interest rate rises. We are also pleased to launch these new fixed rate buy to let products for both purchase and remortgage. In the present environment of low interest rates, buy to let would seem to be a more and more attractive proposition for potential landlords,’ Brewster added.
Newbury Building Society has reduced some of its residential variable rate mortgage products and confirmed that its SVR will remain at the current 4.20%. The discounts range from 0.2% to 0.55%.
‘The price of mortgage business products across the industry has continued to edge downwards in the last 15 months for borrowers. As a result, we are taking the opportunity by not increasing the SVR to increase demand for our products to both new and existing members,’ said Phillippa Cardno, operations and sales director at Newbury Building Society.
‘Not only this, we want to continue our commitment to helping first time buyers’ move onto the property ladder. We can do this by offering lower and more affordable rates across our residential product portfolio,’ she added.
Meanwhile specialist property finance lender LendInvest has launched a buy to let loan product targeted at experienced, professional property investors and landlords operating in England, Wales and Scotland.
The buy to let loans are available for amounts between £50,000 and £5 million and on terms of up to 30 years. A maximum loan to value of 80% applies and they are available via intermediaries.
They have been priced to be highly competitive in the current specialist buy to let market, and include two, three and five year fixed rate products. Loans are available for professional individuals and limited companies. The product has been developed with portfolio landlords in mind and caters for the full spectrum of the residential property investment market.
‘We’re bringing to market a buy to let product that has been created to counter the complaints and concerns we hear from brokers about the quality and accessibility of buy to let loans currently on offer,’ said Ian Boden, sales director at LendInvest.
‘Our online proposal system has been specially designed to be highly efficient, quick and easy to navigate, and lets brokers dip in and out of their clients’ applications at times that suit them. Combining these benefits with highly competitive rates, we’re confident LendInvest buy to let loans will fast become a commonplace feature of the specialist lending market,’ he explained.