January Mortgage News & Updates - Mortgage Squared

update

Read on for news on mortgages, rates and other financial related updates –

High LTV Mortgages Making A Comeback

The number of 90% LTV mortgage schemes on the market has doubled since July 2020.  There are now over 160 of these products available. This obviously opens up mortgages to many more people than before. Rates have increased though as an overall average as well so caution needs to be taken if you are considering a 90% LTV mortgage product.

Nationwide Reduces Rates

First time buyers with Nationwide can now expect a fixed rate of 1.59% for the first 2 years thanks to a reduction in the LTV category of 75%. Nationwide charges a £999 product fee also. If you are looking to remortgage then Nationwide has lowered the rate to 2.79% for a fixed term of 5 years, a reduction from 3.24%.  There is a zero fee version with a slightly higher rate of 2.99%.

Leeds Building Society

2 new 90% LTV mortgage products have been released by Leeds Building Society. These are available to both new purchases and remortgages as well.  They offer a 2 year fixed fee rate of 3.44% that changes to 4.04% until February 2026 and a 5 year fixed rate of 3.50%. They both come with a free valuation and the product fee itself is £999.

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HSBC Cuts Rates

It was announced this week by HSBC that they were starting to offer 90% LTV mortgages again with an option of a 2 year or 5 year fixed rate deal. The 2 year fixed rate is set at 3.69% and the 5 year fixed rate set at 3.84%.  The bank has also reduced it’s rates for over 17 other mortgage products.

Mortgage Market Continues to Improve

With the stamp duty holiday due to end on 31st March this year many people are rushing to sell or buy a new home before, potentially saving them thousands of pounds.  The number of mortgages approved by building societies and banks reached 105 thousand November 2020, the highest level since August 2007 and an increase from 97,532 in October.

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Darlington Offers Adverse Credit Mortgage

A new mortgage scheme aimed at people with adverse credit has been released by Darlington Intermediaries.  It includes 3 new products with different rates of interest and terms to support people with adverse credit history.  These range from an 80% LTV to 65% LTV with rates for the 80% at 3.69%, then 4.09% for the 70% LTV and finally 4.49% for the 65% LTV product.

Stamp Duty Extension Petition

A petition to extend the stamp duty holiday beyond the 31st March deadline has bene launched and so far has over 73,000 signatures.  If it reaches 100,000 then it would be considered for debate in Parliament. The Stamp duty holiday was designed to be a temporary relief to help the property market recover and grow from the affects of the pandemic in 2020.  There are no plans to extend this but with the petition growing in support daily it might be forced to discuss this in Parliament.

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Good News for First Time Buyers

2021 should be a better year for first time buyers. In 2020 90% mortgages seemingly disappeared with many lenders removing these options from their mortgage product offerings.  Buyers with low deposits save dup had an awful time in 2020 and their options were few and far between. The number of 90% mortgage deals is over 160 now, still way down from the 779 in March 2020 but it’s going in the right direction.

If you are in need of any mortgage advice for 2021 then get in touch with Mortgage Squared on 08081 551 807. One of our advisers will be happy to help.

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