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New ranges from The Mortgage Works and Yorkshire Building Society

New ranges from The Mortgage Works and Yorkshire Building Society

The Mortgage Works, the specialist Buy to Let arm of Nationwide Building Society, is to launch a range of 50% LTV two-year fixed rate buy to let mortgages and is reducing rates on existing products by 0.10%.

Rates for the new 50% LTV two-year fixed products start at 1.49% with a £1995 fee, and 1.59% with a 1% fee. In addition, a choice of products with free standard valuation and free legals, or free valuation and £250 cashback start at rates of 1.54% and 1.64% respectively.

Existing 50% LTV products with no arrangement fee are being reduced by 0.10%, with those with free standard valuation and free legals starting at 2.14%, and those with free valuations and £250 cashback at 2.24%.

Paul Wootton, Managing Director of The Mortgage Works, said:

“TMW is offering landlords a range of new 50% LTV buy to let deals with competitive rates in the market, with the aim of helping landlords to manage ongoing costs and offer a wider choice of options.”

Meanwhile the Yorkshire Building Society has launched a new range of mortgages for first-time buyers who have been saving through a Help to Buy Isa.

This range includes two- and five-year fixes available up to 95% LTV. Rates include two-year fixes at 1.72% (up to 90% LTV), and 3.09% (up to 95% LTV).

Longer term options include five-year fixes at 2.39% (up to 90% LTV), and 3.75 per cent (95% LTV). All these mortgages come with a £495 fee and a free standard valuation.

The Yorkshire’s full mortgage range is available to those with a Help to Buy Isa, but these special first-time buyer deals are available only to those who have saved via a Help to Buy Isa.
These savings plans differ from Help to Buy equity loans, which include a five-year interest-free government loan.

Help to Buy Isas, which were introduced in December 2015, are savings products and are available only to those who do not already own a home.

Savers can deposit a lump sum of £1,200 in the first month of opening the account, then add up to £200 a month, to a maximum balance of £12,000. Savers receive a government bonus of 25% on these savings. This money can go towards the purchase of any property – it is not restricted to new build homes, as the Help to Buy equity loan is.

Recent research by Yorkshire Building Society found that 43% of aspiring first-time homeowners were saving with a Help to Buy Isa, while 41% of those who had bought their first home in the last 12 months used this scheme.


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Do you know someone with a Help to Buy ISA?

How to choose the right mortgage

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