Lenders launch a range of new mortgage products to kick start the year
What will happen to mortgage rates in 2017 is still a guessing game with opinion divided over whether or not the Bank of England will raise interest rates but the year has started with a number of offers and new products.
Yorkshire Building Society has launched a two year discounted standard variable rate mortgage at 1.54% for first time borrowers with a 10% deposit and for those looking to remortgage a 90% loan-to-value (LTV) variable mortgage at a discounted rate of 3.2%.
‘Getting on the property ladder can be tough, so we want to help as many people as possible to achieve their dream of home ownership. We hope our new offering will appeal to first time buyers and borrowers with smaller deposits who want to make the most of a low rate,’ said Charles Mungroo, Product Manager at Yorkshire Building Society.
Skipton Building Society has cut rates by up to 0.84% on its New Build products which include a two year fixed rate at 2.75% to 90% LTV with no fee and 2.35% to 90% LTV with a £995 completion fee, and a five year fixed rate range with a fee free 3.15% to 90% LTV and 2.95% to 90% LTV with a £995 completion free.
It is also offering revised rates on its 90% LTV core range products. Two year fixed rate purchase product rates include 2.13% with £995 completion fee and fee free 2.56%, both with free upfront valuations, and a two year fixed rate remortgage at 2.09% with £995 completion free and fee free 2.59%, both with free upfront valuations and standard legal fees.
‘We believe our new build residential products offer very attractive rates and will help first time buyers and those looking to move up the housing ladder to realise their dream of moving into a new property,’ said Kris Brewster, Skipton’s Head of Products.
Meanwhile, Paragon Mortgages, best known in the buy to let market, has announced the first phase in the launch of a new range of residential mortgage products designed to augment competition and choice for customers with complex incomes in specialist segments of the owner occupied market.
Customers in specialist segments, including self-employed and those borrowing into retirement, are often considered too complicated by mainstream lenders and face limited product choice and innovation as a result.
Provided by Paragon Group’s banking subsidiary, Paragon Bank, the first products to launch include two and five year fixed rate mortgages available at 75% and 85% loan-to-value. Interest rates begin at 3.29% for two year products and 3.49% for five year products.
‘Customers with complex incomes looking for a residential mortgage deserve access to a wider choice of mortgage products and to specialist underwriting that recognises their unique circumstances,’ said John Heron, managing director of Paragon Mortgages.
‘From our experience in the buy to let market, we know that customers with multiple sources of income are often amongst the most credit worthy and we see a unique opportunity to leverage this experience and bring new choice and competition to the owner-occupied market,’ he added.