Archive for the ‘Product News’ Category

Woolwich announce new low fee fixed rate products up to 75% loan to value

Thursday, December 3rd, 2009

The Woolwich announced several new fixed rate products yesterday which herald the return of low fee sensible rate mortgage products to the market at what will surely prove to a pivotal moment in the UK’s turn from recession to recovery.

The rates which include a 2 Year fixed at 3.89% available up to 70% loan to value and at 4.09% up to 75% loan to value have an application fee of just £199 with free valuation and legal work on remortgages or £200 cash back towards legal costs if using your own solicitors. Early repayment charges apply of 3% of loan to be paid until 31/01/2012, and APR for the products is 2.8% On both.

They have also included a 3 year fixed product at a similarly competitive rate.

This is a big departure from the glut of products currently offering headline rates with either £995 or even 2% arrangement fee’s and will surely serve to kickstart the lending industry back into competitive pricing with more than just on paper rate cuts.

The products are also available on new purchases and equally competitive there although the lenders standard valuation and legal fee’s will apply on purchases.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We do not usually charge a fee for mortgage advice although you do have the option to pay up to 1.5% of the loan amount. Some buy to let and commercial loans are not regulated by the Financial Services Authority.

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Alliance & Leicester reduce 2 Year Fixed rates

Thursday, October 1st, 2009

A&L have announced further rate reductions yesterday on their 75% loan to value 2 year fixed rates for new purchases. The new product with a £995 fee and fixed rate of 4.53% sits alongside their 4.48% product with a 1% arrangement fee.

The new rate brings them once again into line with rates from the Abbey however the product will be of potential benefit to those who have recently gone self employed or started a business as A&L require only 1 Years accounts minimum against 2 from the Abbey. It also has a free valuation much like Abbeys three year fix at the same rate.

The move continues the trend of lenders moving their products down to a similar baseline but with no one currently undercutting the market significantly unlike what we have seen with variable rates from HSBC and the Woolwich although swap rates have not dropped in the same fashion as 3 month LIBOR which fuelled the reduction in variable rates.

The new rates have an APR of 5.1% and reversion rate currently stands at 4.99%. Early repayment charges are 3% of loan to be paid until 31/12/2011 and lenders Conveyancing fee is typically £189.

Always consult the Key Facts Illustration prior to making a decision on a mortgage product and seek independent advice. To speak to a mortgage advisor call 0845 4594490.

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Alliance & Leicester reduce 3 year fixed remortgage rates

Tuesday, September 22nd, 2009

Alliance & Leicester have announced a reduction to 4.88% for their 3 year fixed rates up to 70% loan to value with either a 1% or £995 arrangement fee. The rate then reverts to 4.99% currently giving an APR of 5.2%.

Valuation fee’s are refunded on completion up to a property value of £1 Million and would be £280 based on borrowing of £100k at 70% LTV. Applicable fee’s are lenders Conveyancing fee of £189, Telegraphic transfer fee of £30 and early repayment charges of 3% of loan to be paid until 30/11/2012.

Whilst this brings them into line with offerings from Abbey it is still some .4% off the current products on offer from the Woolwich.

As usual always consult a Key Facts Illustration before making a decision about a mortgage. For further information on this product or any others please contact us on 0845 4594490 to speak to a mortgage broker.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We do not usually charge a fee for mortgage advice although you do have the option to pay up to 1.5% of the loan amount. Some buy to let and commercial loans are not regulated by the Financial Services Authority.

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Woolwich announce their lowest ever flexible mortgage rate

Thursday, September 17th, 2009

The Woolwich have announced a new tracker at 1.48% above base rate for the first year then reverting to 2.49% above base rate for life giving their lowest ever headline mortgage rate of 1.98% currently. The product has a minimum loan of £200,000 and maximum of £500,000 so it is quite restrictive, early repayment charges are 2% until the 31/01/2013 meaning it does tie you into the rate for some time as well.

The product has a £999 arrangement fee, and based on a loan of £200,000 at 60% a valuation fee of £415, lender Conveyancing fee of £126, land registry fee of £280 and completion fee of £35 while APR is 3.0%.

The biggest caveat to this product is that the option to switch to a Woolwich fixed rate without penalty during the early repayment charge period which Woolwich call “drop lock” does NOT apply to this product, so while its headline rate may be very tempting if there are significant rises in interest rates particularly in the second and subsequent years of the mortgage it could become very costly indeed particularly as early repayment charges on a minimum loan of 200K would amount to four thousand pounds as well!

For this reason I would thoroughly recommend speaking to a mortgage advisor or seeking mortgage advice about the suitability of this product if it has your interest, and as usual read the Key Facts Illustration prior to making any decision on a mortgage product.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. There may be a fee for mortgage advice. The amount will depend upon your circumstances but it is typically £200 or up to a maximum of 1.5% of the loan value. Some buy to let and commercial loans are not regulated by the Financial Services Authority.

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New rates announced by Cheltenham & Gloucester

Wednesday, September 16th, 2009

Further to last week’s post Cheltenham & Gloucester have announced a new product at 90% Loan to Value and a reduction in their five year fixed rates at 85% loan to value.

The new 5 Year fixed rate at 7.19% doesn’t look particularly appetising on paper with a £995 arrangement fee, Early repayment charges staggered at 5% in the first two years and then 4,3 & 2% consecutively for the remaining years, a valuation fee of £300 based on a loan of £100K, with APR at 4.8% and a reversion rate currently at 2.5% but it does reflect the general easing of criteria and willingness to lend at higher loan to value.

Again the reduction of .1% on their existing five year fixed rate at 85% loan to value won’t have Mortgage Brokers dancing in the streets but is a very small step in the right direction. It now has a five year fixed rate of 6.89%, £995 arrangement fee, Early repayment charges staggered at 5% in the first two years and then 4,3 & 2% consecutively for the remaining years, a valuation fee of £300 based on a loan of £100K, with APR at 4.6% and a reversion rate currently at 2.5%.

As usual refer to the Key Facts Illustration before making a decision on a Mortgage and seek independent Mortgage Advice to ensure the product is suitable.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. We do not usually charge a fee for mortgage advice although you do have the option to pay up to 1.5% of the loan amount. Some buy to let and commercial loans are not regulated by the Financial Services Authority.

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Hedging your bets? Switch and Fix.

Thursday, July 9th, 2009

I wrote recently about the tough decision some people are having to take about whether to fix their mortgage now or wait on their standard variable rate rises and with today’s announcement that base rate will stay unchanged at 0.5% the decision hasn’t got any easier.

There is however a nifty product currently being offered by Nationwide Building Society (one of the few lenders still touting for new business) which allows you to take one of their current tracker products now and switch it to a fixed rate whenever you choose without incurring early repayment charges.

Other providers have similar offerings however there is a difference which sets them apart. The Nationwide will allow you to switch to a fixed rate based on the Loan to Value of the valuation taken when you arrange your tracker, which means that if value’s continue to fall you will not be locked out of new deals.

You will have to pay a second arrangement fee however and you will be restricted to the fixed rates available when you decide to change which could be higher than those available now but if you aren’t sure which way to turn at least this offers a get out clause which normal tracker products will not.

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