Posts with tag: mortgage

Barclays offers 100% mortgage

Published On: May 4, 2016 at 1:38 pm

Tags: homebuyers,investors,mortgage,mortgage lenders

Barclays has today announced that it is to offer a 100% mortgage-a three-year fixed rate deal for buyers with no deposit

However, there is a catch!

The lender is offering the deal at 2.99% for buyers who earn more than £50,000 per year.

Celebration

Barclays has made changes to its Family Springboard Mortgage, on the third anniversary of its launch. Previously however, borrowers were required to put down a deposit of at least 5%.

As part of the deal, family or friends of the borrower will be required to deposit the equivalent of 10% of the property’s purchase price into a savings account. This must then be kept there for at least three years.

At the end of this period, the family member or friend will receive this money back, with interest, equivalent to the base rate plus 1.5%.

Barclays offers 100% mortgage

Affordability

Jody Baker, Head of Money at comparethemarket.com, noted, ‘the government’s commitment to building new starter homes, the introduction of the Help to Buy ISA and changes to stamp duty, has shown its efforts to make housing more affordable to first time buyers and its encouraging to see the industry getting in on the act too.’ [1]

‘Whilst Barclays’ move adds a viable option for those looking to buy a home, there is, of course, a note of caution. Loans of this sort require prudence on the part of the borrower, ensuring that they have not over-extended themselves. We would always recommend to anyone that is taking a mortgage works out a detailed budget of their monthly household expenses and assesses in some depth their incomings and outgoings. Equally, we would expect these products to remain few and far between at the fringes of the mortgage lending universe by necessity – after all, it was riskier lending which caused the financial crisis in the first place.’[1]

However, buying agent and housing market commentator Henry Pryor, was less complimentary, describing the move as, ‘a financial grenade.’[1]

[1] http://www.propertyreporter.co.uk/hero/the-100-mortgage-returns.html

Accord buy-to-let range changes

Published On: August 14, 2015 at 9:23 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,mortgage,remortgaging

Accord Buy-to-Let has moved to assist landlords to manage the initial costs of buying or remortgaging by extending its range of £195 product fee mortgages.

Now, the fixed-rate mortgages will be available to landlords with LTV’s of at 60% and 65% and as such, will offer the opportunity to fix the rate for three or five years with the intermediary-only lender, which is part of the Yorkshire Building Society Group.[1]

Cashback

In addition, all house purchase mortgages will offer £500 cashback upon completion, with customers looking to remortgage benefiting from a free standard valuation and a choice of free standard legal fees or £300 cahsback on completion.[1]

For 60% LTV, Accord is offering a three-year fixed rate of 2.84% and a five-year fixed rate deal of 3.44% for house purchasing. Landlords looking to remortgage at 60% LTV can now get a 2.99% fixed-rate for three years or a 3.59% fix for five years. Additionally, landlords with a 65% LTV who are in the market for a new property can fix for 3.09% or five years at 3.74%.[1]

Landlords looking to remortgage at the same LTV have the choice between a three-year rate of 3.24% or a five-year rate of 3.89%.[1]

Accord buy-to-let range changes

Cost-effective

Chris Maggs, Accord Buy-to-Let Commercial Manager, said, ‘we know that the upfront costs associated with both house purchase and remortgage can be off-putting when brokers are trying to find the mortgage which best fits their clients, so these competitive, lower-fee mortgages are designed to give different options for those who want to minimise initial costs.’[1]

‘The longer-term fixes will give landlords the security of a guaranteed rate for the next three or five years, which we think will prove popular with brokers and customers,’ Maggs added.[1]

[1] http://www.propertyreporter.co.uk/finance/upfront-costs-for-landlords-cut-at-accord.html

Newcastle Building Society launch new mortgage products

Published On: June 19, 2015 at 4:22 pm

Author: Em Morley

Categories: Landlord News

Tags: first time buyers,mortgage,Newcastle Building Society

Newcastle Building Society has become the latest group to announce new mortgage products for its customers.

Four mortgage products have been revealed, specifically for the New Build marketplace. The lender has confirmed that these will be up to 90% LTV and are catered towards first-time buyers looking to buy a new property.

Low

Additionally, all four products come without fees, keeping upfront payments low. What’s more, builder and developer incentives can be included with a deposit for 85% range products.

All 90% LTV products are equipped with two and five year fixed rate options. For two-year products, the cost is fixed at 3.89% and for five years, rates are fixed at 4.10%.[1]

85% products LTV are available at 3.04% fixed-rates over two years, whereas five-year products will be fixed at 3.55%.[2]

Furthermore, changes to the Newcastle Building Society’s lending policy will now see the maximum LTV dependent on the presence of builders incentives or whether the property is a new build house or flat.

Newcastle Building Society launch new mortgage products

Support

‘The Society has supported first-time buyers for a number of years through our mortgage products with LTVs up to 95%,’ said Steve Urwin, Newcastle Building Scoeity’s Director of Sales and Marketing. ‘The launch of specific products for the new build market will continue to support first time buyers and next time buyers in a market that has and is expected to expand in the next couple of years,’ he continued.[3]

‘The products have been designed with a range of fixed rate terms to offer flexibility, as well as fees free and cash-back options to help keep upfront cost low for first time buyers,’ Urwin added.[4]

[1] http://www.propertyreporter.co.uk/finance/new-build-products-launched-at-newc4stle-bs.html