Lenders offer raft of new incentives to homemovers and buy to let borrowers

Halifax launches a new £500 cashback incentive, Saffron enhances its expat offering, Masthaven targets customers with complex application requirements and Skipton introduces a residential tracker at a rate of 1.17%. All this comes as mortgage approvals for house purchase edge up 0.2% month-on-month to 65,202 in May, according to the latest figures.

As from 3rd July, Halifax Intermediaries will launch a new cashback incentive of £500, which will be offered to first-time buyers, homemovers and remortgage customers on qualifying mortgages.

On successful completion of purchase, the cashback will be sent to the conveyancer and paid with completion funds.  In addition to the cashback, Halifax is also offering remortgage customers basic legal fees and standard valuation costs.

Saffron for Intermediaries’ new product improvements are applicable to every day and ex-patriate buy to let mortgages.

The lender has created a new 75% loan-to-value band for ex-patriate buy to let borrowers.  The product is available at a three-year fixed rate of 3.69% and applicants are not required to have had a UK mortgage previously.  Saffron will consider first-time buyer applications and will not impose any country restrictions.

Fees include a 2.5% arrangement fee and a 3% early repayment fee, applicable for the period of the discount.

Everyday buy to let borrowers will now have access to a two-year discounted rate of 2.49% up to 75% LTV from the lender.  The deal comes with an arrangement fee of 2%, a minimum loan size of £30k and maximum loan size of £1m over a period of up to 40 years.

Masthaven has entered the residential mortgage market, targeting customers with complex application requirements.

The lender will launch through a panel of specialist brokers and will provide manual underwriting facilities if required, eliminating the need for credit scores. 

Included in the range of new products is a two-year fixed rate product at 2.94%, a five-year fixed rate product available at 3.44% and a lifetime tracker at the same rate (3.44%).

Masthaven’s mortgages will be available to borrowers aged up to 85 years old, contractors, the self-employed and those with poor credit.  They will lend between £40,000 and £1m, for terms of five to 35 years.

It will lend to customers with deposits of up to 20%, or 40% for interest-only or part and part loans. 

Masthaven hopes to to extend distribution to all brokers by the end of 2017.

Skipton Building Society has launched a new rate of 1.17%, within it residential mortgage tracker range.

The full tracker range, which is available to both new and existing customers, includes the 1.17% rate at 60% LTV, a rate of 1.40% to 75% LTV and a rate of 1.71% to 85% LTV. Fees of £495 apply.

A three-year fee free retention tracker range is also available for remortgagors.  The range includes the following rates:  1.53% to 60% LTV, 1.73% to 75% LTV and 2.49% to 90% LTV. 

The range also offers free valuations, no early repayment charges and unlimited overpayments, but the products are only available to existing customers and brokers of the lender’s mortgage retention pilot.

Skipton has also added two new fee-free two-year interest-only trackers, which will track the Bank of England base rate, currently 0.25 per cent. The following rates apply: 1.58% to 60 per cent LTV and 1.70% to 70% LTV.

These new product launches are set against the backdrop of the latest figures from the Bank of England that show mortgage approvals for house purchase edged up 0.2% month-on-month to 65,202 in May.  Remortgaging approvals meanwhile rose from 40,437 in April to 42,955 in May.

Andy Knee, chief executive at LMS said:

“Market conditions remain favourable for remortgagors. Mortgage rates remain low, which gives homeowners the option of locking into longer term deals amid an uncertain macroeconomic backdrop.”

 

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