BM Solutions has introduced new rates for purchase and remortgage, while Santander has cut the rates on its 75% loan-to-value (LTV) Help to Buy equity loan products.
BM Solutions has launched new rates for purchase and remortgage and is offering free valuations up to £1,500 on all of its remortgage products.
The following rates will now be available from the lender, for purchase and remortgage:
- 2 year 60% LTV from 1.69%
- 2 year 75% LTV from 2.04%
- 5 year 60% LTV from 2.24%
- 5 year 75% LTV from 2.79%
Phil Rickards, Head of BM Solutions said that the lender has reintroduced free valuations to help drive down the up-front costs of remortgaging for customers.
Earlier in the year, the lender also launched a new range of five-year fixed rate mortgage products. These come with a stress rate of 5.25%, applicable to new and remortgage applications.
Santander has cut rates on its 75% LTV Help to Buy equity loan products by 0.15% and the lender is also reducing the rates on some if its fee-free fixed mortgage deals.
The reductions to lender’s Help to Buy equity loan products for purchase, include:
- 2 year 75% LTV fixed from 1.39%, with £999 product fee
- 2.5 year 75% LTV fixed from 1.49%, with £999 product fee, purchase
- 2.5 year 75% LTV fixed from 1.89%, with zero product fee, purchase
- 5 year 75% LTV fixed from 2.44%, with £999 product fee, purchase
- 5 year fixed 75% LTV from 2.69%, with zero product fee, purchase
While its fee-free range of fixed rate products now include:
- 2 year 60% LTV fixed from 1.54%, zero product fee, purchase and remortgage
- 5 year 60% LTV fixed from 1.99%, zero product fee, purchase and remortgage
- 2 year 75% LTV fixed from 1.64%, zero product fee, purchase and remortgage
- 5 year 75% LTV fixed from 2.29%, zero product fee, purchase and remortgage
- 5 year 75% LTV fixed from 2.19%, zero product fee, for first-time buyer
Santander has also introduced a new five-year fixed rate product at 1.89% for a 75% LTV mortgage. This is available to ‘direct-only’ customers who apply online.
Confirming the popularity of fixed rate mortgage deals, a new report from Paragon Mortgages has found that fixed rate mortgages are at a 20-year high.
The Financial Advisors Confidence Tracking Index report shows that 89% of all mortgages introduced between January and March this year were at a fixed rate, up 6% on Q4 2016.
The report found that this is the continuation of an upward trajectory that began at the end of 2010, when fixed rate and tracker mortgages were found to be equally popular, at 46% and 45% of all new transactions respectively.
The first quarter of 2017 also saw buy to let lending stabilize, with the market accounting for 18% of all mortgage transactions. Of this buy to let remortgages were the most popular.
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