Here are some of the interest rates we have seen over the past couple of weeks, noticing very mixed movements amongst lenders, noticeably brief re-introduction of rates and withdrawals shortly after.
· Nationwide had relaunched their 90% LTV products for First Time buyers from Monday 20th July. TSB also re-introducing some higher LTV residential products.
· Coventry Building Society expanded their 90% LTV range to include 5 year fixed rates, but they were only available for 24 hours. Their 2 year fixed rates remain for the same LTV.
· Barclays have removed their minimum £200,000 loan size for interest only residential mortgages. Part-part interest only/repayment type mortgages have also increased from 75% LTV to 80% LTV. As of 15th July they have already increased many of their buy-to-let product range
· In light of the recent stamp duty changes, where buyers are purchasing new builds, both Natwest and Accord are accepting cash allowance incentives that substitute for the developer paying for the stamp duty as part of the deal but now no longer applies. Any new cash incentive must be reflected in the UK Finance disclosure document.
· Kensington Mortgages, specialist lender has withdrawn their Help To Buy 5 year fixes temporarily but have slightly reduced their 75% LTV buy-to-let rates for both 2 and 5 year fixes.
· Virgin Money are withdrawing selected 80% LTV rates from their buy-to-let range, as well as increasing selected 85% LTV fixed rates and 90% LTV shared ownership rates for the residential mortgages.
· Metro Bank have decreased their 75% LTV buy-to-let rates in early July and re-introduced 90% LTV residential mortgages.
· The Mortgage Works have reduced their Limited Company buy-to-let range to a total of 4 products only. There are no fee free products anymore and their lowest 2 year fixed rate has increased from 3.19% to 3.39%.
· Specialist lender Landbay as of 21st July have increased their lending limits and are now lending up to 75% LTV for small HMOs and Multi-Unit Blocks and reduced rates for standard buy-to-let properties, movements illustration that they are opening up to buy-to-let lending again.
As a firm we have also experienced an increase in new enquiries regarding residential purchases as a result of the stamp duty cuts, naturally. Whilst we welcome the act by the government, we'd also like to re-iterate that there is no correlation between the stamp duty cuts and maximum borrowing amounts from lenders. Every lender has their own perspective on affordability with their own measures on the maximum possible borrowing amount. Cuts in stamp duty by no means equals being able to borrow more.
Overall, the above is by no means an extensive list of everything that has happened, but rather it is just a few of some of the movements that we have seen.
What might stand true yesterday may not hold today. It is advised that you contact a
mortgage broker to ascertain the most up-to-date lending criteria and product rates
available to you.
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