MortgagesOct 2 2015

Record lows and increasing rates across two-year deals

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Record lows and increasing rates across two-year deals

This week saw one bank increase rates on buy-to-let products, one building society launch its “lowest rate ever”, and a mortgage club introduces a couple of exclusive deals.

In another fairly lean week for new deals - only three lenders came to market last week - Leeds Building Society’s 1.45 per cent two-year fixed rate was a highlight.

The society claimed it was the “lowest fixed rate” in its 140-year history and said it was only available for two weeks and just for house purchase applications.

The offer is available up to 60 per cent loan-to-value and comes with the a free standard valuation up to £560.

Martin Richardson, Leeds’ director of business development, stated: “We are confident that certainty at an affordable rate will be very popular.”

Meanwhile, on Wednesday (30 September), TSB was forced to increase the rates on its two-year buy-to-let products available to home buyers and remortgagers through brokers.

Those mortgages with an LTV under 60 per cent will see increases of between 0.05 per cent and 0.25 per cent on both fixed and tracker mortgages, whilst two year buy-to-let deals with an LTV above 60 per cent will see an increase of 0.25 per cent on selected products.

Across the whole range, rates for fee-free products remain unchanged.

Finally, Legal and General Mortgage Club launched a range of exclusive deals with The Cambridge Building Society, catering to both residential and buy-to-let homeowners wishing to remortgage.

Jeremy Duncombe, director of the club, commented: “The combination of a high LTV and a low rate is a great blend for borrowers wanting the security of a five-year fixed rate. The buy-to-let product also adds a greater level of value and choice to the market by offering a discount rather than a fix.”

Here are all the rates that were publicly announced this week:

LenderLTV/Type Headline Rate Product Fee
Leeds Building Society60%/2-year fixed1.45%£999
TSB60%/2-year fixed2.49% (BTL)£1,995
TSB60%/2-year fixed2.69% (BTL)£995
TSB60%/2-year tracker2.29% (BTL)£1,995
TSB60%/2-year tracker2.49% (BTL)£995
TSB60-75%/2-year tracker3.04% (BTL)£1,995
TSB60-75%/2-year tracker3.19% (BTL)£995
TSB60-75%/2-year fixed3.24% (BTL)£1,995
TSB60-75%/2-year fixed3.39% (BTL)£995
The Cambridge Building Society75%/2-year discount2.79% (BTL)£0
The Cambridge Building Society90%/5-year fixed3.69%£0

peter.walker@ft.com