Raft of lenders up-date mortgage offerings, cutting rates and launching new deals

From Coventry Building Society launching its lowest ever 10-year fixed rate residential mortgage to Metro Bank cutting residential and buy to let five-year fixed rates by up to 0.30% a raft of lenders has announced up-dates to their mortgage offerings in the days following the EU referendum.

In a move that has been linked to the fall of medium to long-term swap rates, following the UK’s vote to leave the EU, Coventry Building Society has introduced the lowest ever 10-year fixed rate at 2.39%(4.7% APRC).

The 2.39% fixed rate is available on 50% loan-to-value (LTV) mortgages and comes with a fee of £999. It is the first in a series of cut-priced fixes, which the lender is due to launch on Friday.

A fee-free option will also be available. Early repayment charges will apply to all Coventry’s 10-year fixes, for the length of the product term.

Also new to residential customers is Coventry for Intermediaries’ 50% LTV range, which includes a 2.09% five-year fixed rate mortgage. Early repayment charges to September 2012 and an arrangement fee of £999 apply.

The range also offers an offset option at 2.19%(4.6% APR) for a five-year fixed deal, with the same early repayment charges and arrangement fee.

Metro Bank, meanwhile, has cut the rates on its residential and buy to let five-year fixed mortgages by up to 0.30%.

An 80% LTV residential mortgage is now available at 2.49%(3.5% APRC), down from 2.79% and on the buy to let front, a 75% LTV mortgage is now on offer at 3.29%(4.3% APRC), down 0.20% from 3.49%.

In April, Metro Bank launched an intergenerational mortgage range, in collaboration with St James Place.

New three-year fixed rate residential mortgage deals have just been launched by Skipton Intermediaries.

The new deals, available for purchase or remortgage, are only accessible through brokers, and include three-year fixed rates from 1.99%(5% APRC), for 60% to 90% LTV mortgages.

Skipton is also offering free one-day mortgage valuations and up to £500 cash back on these deals. Completion fees of £995 apply.

TSB brings its buy to let offering in line with other lenders as it ups its buy to let interest coverage ratio to 145% from 125%.

As from today, TSB will charge 145% of 5%, or pay rate, whichever is highest, for loans up to 65% LTV.

Mortgages from 65.1% to 75% LTV will necessitate 145% of 5.5%, or pay rate, and the revision will also apply to residential mortgage affordability where the borrower also has a buy to let loan.

At Accord Mortgages buy to let five-year fixed rates are rising and all five-year end dates have been extended to 31 October.

The lender has made the following revisions:

  • 5 year 60% LTV products increased by 0.15%

  • 5 year 65% LTV products increased by 0.30%

  • 5 year 75% LTV products increased by 0.20%

Lastly, using the latest technology to improve its buy to let offering, Foundation Home Loans (FHL) has launched a new online portal called TED (Technology Enhanced Decisioning), which it says will enable introducers to complete online Decisions in Principles (DIPs), send applications, upload supporting documents and track ongoing cases.

FHL hopes the new portal will improve its services for introducers, making it the simplest and most efficient in the market.


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