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Summertime brings new mortgage deals and lending initiatives

The British summertime brings with it a raft of new mortgage deals, as Santander reduces fees and rates, Barclays sweetens buy to let and residential deals, Saffron unveils a new self-build loan and TMW develops a new broker platform.

Santander has cut the fees on its 60% and 70% loan-to-value (LTV) deals and has reduced a selection of its fixed rate residential mortgages.

The fees on its 60% and 75% LTV two-year fixed rate buy to let mortgages have been reduced from £1,495 to £500, while the rates cuts to its fixed-rate residential products include:

  •          60% LTV five-year fixed £999 product fee, purchase and remortgage deal: rate cut by 0.05% to 1.79%
  •          75% LTV five-year fixed £999 product fee, purchase and remortgage deal: rate cut by 0.05% to 1.99%
  •          90% LTV two-year fixed £0 product fee, purchase and remortgage deal: rate cut by 30bps to 2.54%

Barclays’ new mortgage deals include a two-year fixed rate 75% LTV residential product at a rate of 1.65%, with no fees.

The lender has also launched a higher value buy to let mortgage range, which offers individual loans up to £2m, at a maximum of 60% LTV.

Included in the range is a 1.54% two-year fixed rate mortgage at 60% LTV, with a fee of £1,950.

Barclays is also offering free legals on both its 60% and 75% LTV remortgage products.

Self-build enthusiasts will be interested to learn about Saffron for Intermediaries new self-build mortgage.

The new deal is offered on an interest-only basis for 24 months.  Once this term ends, the borrower is allowed to switch to another Saffron mortgage or to another lender.

Borrowers are allowed to draw down funds as and when required, thus no longer being restricted by strict stage payments.  Applications from first-time buyers are also permitted.

The loan is offered at a rate of 4.20%, incorporating a discount of 1.19% from the lender’s Standard Variable Rate (SVR).

The maximum LTV allowed is 65% of the purchase price of the plot, 100% of the build costs of up to 75% of the gross development value. Saffron will lend between £30,000 and £1m and the loan has a 1% arrangement fee but no early repayment charges.

Ahead of the Prudential Regulation Authority’s (PRA) revision to landlord underwriting standards in September, The Mortgage Works (TMW) has teamed up with EDM Mortgage Support Solutions to create a solution to help brokers navigate the changes.

Using the new systems, brokers will be able to upload portfolio property details directly into a new platform.  These details will then be validated via EDM MSS’s PRISM platform and sent to TMW’s team of portfolio underwriters, who will make the necessary assessments.

According to TMW, PRISM is an EDM-hosted digital hub that “brings manual processes online, enabling lenders to access third party data and make business decisions around the suitability of properties immediately”.