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Even more choice of mortgages for buyers in the UK

First direct, winner of Moneywise Most Trusted Mortgage Provider, has today (Friday 23 August) reduced the rates on eleven of its Offset and Repayment mortgages by up to 20 Basis Points (BP).

Borrowers with 25 to 35% deposit or equity will be able to take advantage of these lower rates, which are offered with and without fees. In addition to reducing its rates, the internet and telephone bank also offers a fee free option across their mortgage range to help borrowers keep their upfront costs down.

‘Despite Funding for Lending making the mortgage market more competitive and the recent uplift in the housing market we haven't seen as many people as we expected taking the plunge and moving mortgages,’ explained Andy Forbes, head of retail products at first direct.

‘We want to make it easy for customers to get a great mortgage deal, removing the barrier of paying a fee.  So now, whether you have a high or low LTV, want a Tracker or Fixed rate, Offset or Repayment, there is a first direct fee free mortgage with a great rate that fits,’ he said.

The Halifax has reduced rates on selected two year products across its mortgage and remortgage range by up to 0.45%. These reductions also include products in the Affordable Housing, including Help to Buy, New Build, and NewBuy/MI New Home ranges.
The new rates include a 90% LTV two year fixed rate for first time buyers that is now available at 4.59% with no fee and £500 cash back, and an 85% LTV two year fixed rate remortgage product is reduced by 0.45% and is now available at 3.59% with a £995 fee.

Other changes include 75 to 80% LTV two year fixed rates reduced by between 0.15% and 0.20% with rates now starting at 3.19% and an 80 to 85% LTV two year fixed rate mortgages for home movers and first time buyers are reduced by 0.20% with rates now starting at 3.59%.

‘We are making a number of pricing reductions across our product range and are pleased to be able to continue to support not only first time buyers, but the wider market. Home movers play a key role in ensuring the strength of the property market and we are committed to helping these buyers take the next step on the ladder as well as helping customers save money by remortgaging with Halifax,’ said Craig McKinlay, mortgages director at the Halifax.

Virgin Money has also announced a number of changes to its mortgage range. The updated range two year fixed rates at 60% LTV with a £995 product fee reduced to 2.04%; a 60% LTV Fee Saver Option reduced to 2.45%; and a 80% LTV reduced to 2.85% with a £995 product fee with £300 cash back for purchase customers. There are also reductions on three year fixed rates, on tracker products and on buy to let mortgages.

‘We are pleased to support borrowers with these lower rates for residential mortgage customers. We are also continuing to help buy to let customers, and were delighted when our support for this segment was recognised this week in winning Best Buy to Let Mortgage Provider in the 2013 What Mortgage Awards,’ said Peter Rogerson, commercial director for mortgages and savings at Virgin Money.

Metro Bank has y launched two new residential buy to let products for professional property investors. The products, aimed at investors with a maximum of 25 properties in their portfolio who rely on income solely from property, will now be available to Metro Bank's broker partners and NACFB members.

The products are a two year tracker at 4.89% and a five year fixed rate at 5.25% aimed at professional investors. Both products carry a rent to interest calculation of 125% at 5.5%. Customers can refinance a maximum of 10 properties at one time with aggregated exposure of £2.5m to 65% LTV.
Investors will be attracted to the capital overpayment facility of up to 10% each year as well as the interest-only option of up to 10 years. The products are also available to trading businesses and SPV Limited Companies.

‘We are always looking for new ways to support our customers and bring them the best in service and convenience. We believe there is plenty of room for more lenders to offer mortgages suited to professional residential investors, and are pleased to be able to support this group through today's extension,’ said Richard Saulet, director of mortgages and commercial delivery at Metro Bank.

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