MortgagesMay 1 2015

Longer-term fixes in frame as new launches slow

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Longer-term fixes in frame as new launches slow

In the run-up to the general election it appears that lenders are holding off launching new rates, with only five lenders putting out new offers this week. One trend among these was a high proportion of longer-term fixes, which have proven popular in recent months.

Metro Bank launched a range of four 5-year fixed rates, available between 60 per cent and 85 per cent loan-to-value and at rates ranging between 2.29 per cent and 3.19 per cent, all with a £999 product fee.

Coventry Intermediaries also launched its lowest ever five-year fix at 2.19 per cent, available at 60 per cent LTV and with a £999 fee. A 65 per cent LTV buy-to-rate was also offered over five years at 3.49 per cent with a £1,999 fee.

Among a spate of new offers Nationwide launched new five and 10-year rates at 60 and 70 per cent LTV. At the lower LTV level rates are either 2.24 per cent or 2.54 per cent with a £999 fee, or 2.44 per cent and 2.74 per cent respectively without.

The 10-year rates are priced identically at 3.14 per cent with a £999 fee, or 3.24 per cent without.

The moves come in the week FTAdviser published an adviser guide to long-term fix mortgages, which among other things discussed how low swap rates and less immediate likelihood of a rise in the base interest rate have allowed providers to compete more aggressively on cost.

To read the guide and earn 50 minutes CPD, click here.

Here are the rates that were publicly announced this week:

Lender LTV/TypeHeadline RateProduct Fee
Metro Bank60%/5-year fixed2.29%£999
Co-operative Bank60%/2-year fixed1.09%£1,499
Co-operative Bank60%/3-year fixed1.89%£1,499
Co-operative Bank 60%/2-year fixed2.64%£1,499
Coventry Intermediaries60%/5-year fixed2.19% £999
Nationwide60%/2-year fixed1.49%£999
Nationwide 60%/2-year fixed 1.89%£0
Nationwide60%/3-year fixed1.94%£999
Nationwide60%/3-year fixed 2.24%£0
Nationwide60%/4-year fixed2.04%£999
Nationwide60%/4-year fixed2.34%£0
Nationwide 60%/5-year fixed2.24%£999
Nationwide 60%/5-year fixed2.44%£0
Nationwide 60%/10-year fixed3.14%£999
Nationwide60%/10-year fixed3.24%£0
Coventry Intermediaries 65%/5-year fixed3.49% (buy-to-let)£1,999
Metro Bank70%/5-year fixed2.49%£999
Nationwide 70%/2-year fixed1.74%£999
Nationwide 70%/2-year fixed 2.14%£0
Nationwide70%/3-year fixed 2.24%£999
Nationwide70%/3-year fixed2.54%£0
Nationwide70%/5-year fixed 2.54%£999
Nationwide 70%/5-year fixed 2.74%£0
Nationwide70%/10-year fixed3.14%£999
Nationwide70%/10-year fixed3.24%£0
Accord 75%/2-year fixed 2.69% (buy-to-let/remortgage)£800
Metro Bank80%/5-year fixed2.79%£999
Metro Bank 85%/5-year fixed3.19%£999

ruth.gillbe@ft.com, ashley.wassall@ft.com