News Review


Lenders creeping back up loan to value curve By Sarah Davidson


may saw two lenders launch 95% LtV products and the average rate for 90% LtV deals fall below 6.00% for the first time since march 2008. nationwide


launched


Save to Buy, a direct-only savings account paying a rate of 2.5% gross pa/aer variable on balances up to £20,000 that also qualifies first-time buyers to apply for a 95% loan. if the first- time buyer goes on to take out a nationwide 95% LtV mortgage they are eligible for a cash-back reward of up to £1,000. meanwhile


Skipton


launched a 95% LtV 2-year fix at 5.99% with no completion fee and an application fee of £195 available through connells, Legal & general, PmS, London & country and Sesame.


First-time buyer prospects improve


on new build By Sarah Davidson


the council of mortgage Lenders has been in talks with the House Builders Federation about how lenders and builders can help first-time buyers into new-build properties. Specific details of the talks


were unconfirmed but countrywide’s


financial


services director, nigel Stockton, said he was pleased the two trade bodies were discussing how to raise loan to values on new-build properties. He said: “i’m delighted the cmL had the meeting with


4 mortgage introducer JUNE 2011 moneyfacts research also


revealed that the average rate for a 2-year fix at 90% LtV was 5.98% in may, 0.40% lower than a year ago. the number of deals available to borrowers with a 10% deposit also rose 41% over the year to 229 while the number of lenders offering 90% LtV deals also increased from 31 in may 2010 to 48 today. michelle Slade, moneyfacts.


co.uk spokeswoman, said: “the increased competition in the 90% LtV tier has resulted in a large reduction in rates compared to the same time last year, even though the base rate has stagnated. the news will be a boost to first-time buyers who have been left with limited options in the last few years.” Lenders offering the cheaper 90% deals included


the HBF and i believe they have another one planned. if we can move LtVs up on new build that would move the market most quickly.” He said the lack of high


LtV products was understandable from a lender perspective but that the market needed more of them to recover. “the new home LtV cap is


now the biggest thing stopping the new homes


Kensington which launched a limited tranche of 90% LtV mortgages available through Legal & general mortgage club. the deals included a 2-year fixed rate of 5.79% and a £999 arrangement fee for purchasers and a first-time buyer 2-year fixed rate of 5.99% with a £699 arrangement fee. Ben thompson, managing director of Legal & general mortgage


club,


said:


“Kensington have brought a new approach and some welcome competition to a flat market, most of all they are, in this example giving customers a much needed chance of stepping onto, or moving up the property ladder, without the need for an impossibly large deposit.” abbey for intermediaries


launched a key account exclusive 2-year fix at 5.99%


market moving forward,” Stockton said. “Lenders will only lend 75% on new homes versus 85% on rest of market. that 10% gap is across the whole piece. We cannot get 85% LtVs on new build apartments.” meanwhile Bovis Homes


revealed it was in discussions with lenders about the possibility of launching a 95% LtV mortgage as the lack of high LtV mortgages is


Michelle Slade


available up to 90% LtV for purchase customers with the Homebuyer Solution and a product fee of £99. While


norwich &


Peterborough also launched two 90% LtV mortgages and raised the threshold it would lend on self-build and new- build houses from 75% to 80%.


holding back the house building market. Last June the group


launched a 90% LtV mortgage with Woolwich exclusively for borrowers buying a Bovis Home. and just last month Woolwich slashed the rate on the 2-year fixed rate deal by 1.20% from 4.99% to 3.79%. national broker and estate


agent countrywide also announced last month it is deploying more than 70 mortgage consultants across the country, to provide advice for all new homes buyers. the move comes after a


deal between the broker and cB richard ellis to offer advice on all aspects of sales, rental, investment, financial and property management for new houses and apartment.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60