Lenders cut rates and review mortgage criteria

Lloyds Bank and Nationwide have reduced rates and amended the criteria on their residential mortgage ranges. Foundation Home Loans, meanwhile has refreshed its buy to let offering and the Bank of England holds interest rates at a record low for the 87th consecutive month.

Lloyds Bank has reviewed its first-time buyer offering and has reduced the rates on its two-year and five-year 85-90% loan-to-value (LTV) first-time buyer mortgages by 0.30%.

Lloyd’s new build first-time buyer mortgage has also been reduced and 85-90% LTV mortgages are now available from 3.74%(3.7% APRC), with a £995 fee.

These reductions come hot on the heels of the launch of Nationwide’s ‘Hassle Free’ range, which is designed to take care of mortgage arrangements for first-time buyers and cover upfront costs, such as legals and valuations.

The bank has also just launched a ten-year fixed rate 60% LTV mortgage at 2.99%(3.4% APRC), having cut rates by up to 0.25%.

Other ten-year options include a 70% LTV at 3.09%(3.4% APRC) and a 75% LTV from 3.29%(3.7% APRC). Five-year fixed rates now start from 2.19%(3.7% APRC) for a 60% LTV mortgage.

For buyers with smaller deposits, Nationwide is offering 95% LTV mortgage options at 3.89%(4.1% APRC) for a two-year fix, 4.39%(4.2% APRC) for a three-year fix and 4.69%(4.4% APRC) for a five-year fix.

The bank is also going to extend its maximum borrowing age of 85 to homeowners looking to remortgage with Nationwide from other lenders.

The bank recently announced that it would allow existing mortgage customers the option of borrowing up to the age of 85, but now, as from July, the opportunity will be extended to new remortgage customers, as long as they fit the required criteria.

Initially this opportunity will only be offered through intermediaries, but will be available across the product range, with a limit of £150,000 for any new borrowing.

The maximum LTV will be limited to 60% and the maximum age at application is 80. The criteria will be the same for both existing and new Nationwide mortgage customers.

Foundation Home Loans (FHL) has up-dated its buy to let product range, withdrawing current products and introducing new.

Highlights include reduced rates on its Prime Fixed products, which now start at 3.59%(5.2% APR) for a two-year, 75% LTV mortgage, as well as new Light Adverse products for limited companies, which start at 4.49%(5.8% APR) for a two-year fixed 70% LTV deal.

The lender has no maximum age for limited company applications and it has also amended its rental cover calculations to 145% of pay rate (or 5.25% notional rate) for individuals, and to 125% of pay rate (or 5.25% notional rate) for limited companies.

These revised residential and buy to let mortgage deals are announced just as the Bank of England decides to maintain interest rates at the record low of 0.5%, while again issuing a warning about the impact of a Brexit outcome on 23rd June.

 

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