NEWS LENDERS
Co-op Bank joins crowd of lenders upping SVRs
NATALIE THOMAS
The Co-operative Bank is the latest lender to increase its SVR. From May 1, it is raising its SVR
by 0.5% – from 4.24% to 4.74%. It estimates the average increase seen by SVR clients will be £15 a month. For customers on a high LTV – 90% or above – it is launching a five- year fixed rate that is available at the same rate as they currently pay, with no upfront fees or charges. A spokeswoman for the Co-op
says: “When changes are made that impact our customers, we seek to ensure that wherever possible we provide solutions. “We recognise that some custo -
mers who have a higher LTV mort - gage may be particu larly concerned about this change and we have put measures in place to make alterna - tives available for them.”
NEWBUY Nationwide helps small builders
Nationwide has launched a scheme that allows smaller builders to get on its NewBuy Guarantee panel. To be on a lender’s panel for
NewBuy builders are expected to be able to build around 100 properties during three years. This is because they need to have
a range of properties so the risk can be spread to get the capital relief that is a feature of the scheme. But a number of smaller builders
are unable to build the minimum amount of properties to qualify for the deal. To overcome the problem, Nation - wide has intro duced a multi-user agreement which allows builders to club together to meet the target. Andrew Baddeley-Chappell, head
LENDERS HSBC approves record £4.9bn in Q1
HSBC approved £4.9bn in mort - gages in the first three months of 2012 – 9% more than a year ago and the highest quarterly amount it has ever approved. Of this figure, £1.2bn was app - roved for first-time buyers – an
10
annual rise of 18% and an average of £93m per week or £19m per day. Earlier this year the bank con -
firmed it would be making at least £15bn in mortgages available to home owners in 2012, including £3bn for first-time buyers.
MORTGAGE STRATEGY April 9, 2012
of mortgage strategy and policy at Nationwide, adds: “This is for builders that aren’t building on a big enough scale so they in effect pull together. “This means you begin to allow a
larger range of builders into the scheme.” Fairview New Homes is the first
builder to sign up to the multi-user agreement. When Nationwide launched its
NewBuy proposi tion on March 12 it had agreements with six building firms – Barratt Develop ments, Taylor Wimpey Homes, Per simmon Homes, Bellway Homes, Bovis Homes and Redrow. Linden Homes and Crest Nichol - son signed up a week later.
Michael Ossei, personal finance
expert at
uSwitch.com, says the news is another blow to home owners who could see their monthly costs shoot up at a time when their finances are already stretched. He says: “Many of those on
tracker deals have been enjoying lower mortgage payments over the last few years as a result of the low base rate. But this will bring them back down to earth with a bang. “And because the increase has nothing to do with the base rate, which still shows no signs of budging, the blow won’t be softened by a corresponding increase in savings rates.” The Co-op’s move follows Hali fax,
Clydesdale and Yorkshire banks and Bank of Ireland, that have all hiked their SVRs in recent months.
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