Mansfield Building Society has launched a new range of fixed-rate and discounted-rate mortgages, some of which are aimed at first-time buyers.
The society has launched five- and two-year fixed rate deals, at 4.25 per cent and 2.89 per cent respectively, although the former is being offered up to 95 per cent loan to value (LTV), while the latter is being offered up to 90 per cent LTV.
Mansfield has also offered some discounted-rate products: a three-year rate at 3.49 per cent, variable and up to 95 per cent LTV; a two-year discounted rate at 2.69 per cent variable at 80-90 per cent LTV; and a two-year discounted rate at 2.15 per cent variable up to 80 per cent LTV.
Completion fees start from £300 and all products come with a free basic valuation and free legals are available for those that are remortgaging.
Early repayment charges are at 2 per cent on two-year products and 3 per cent on three- and five-year mortgages, with all products carrying an application fee of £199.
These mortgages have been launched in a bid to attract first-time buyers and high LTV borrowers.
First-time buyer lending has increased dramatically in the past few months, with a 28 per cent rise in June compared with May to £5.5bn, according to the Council of Mortgage Lenders.
In total, 34,300 loans were arranged for first-time buyers in the month, a rise of 24 per cent on May, and 17 per cent year on year.
Provider view
Steve Walton, national development manager of Mansfield Building Society, said: “Brokers have told us that they appreciate our common sense approach to underwriting and our flexible lending criteria. They also tell us that our service is pretty good too.
“With house prices remaining heavily influenced by supply and demand, we haven’t lost sight of those existing homeowners looking to refinance on to preferential terms, and our products have been priced with their needs in mind. This is another step towards offering a product range that, when combined with our pragmatic approach, can make a real difference for brokers and their clients”.
Adviser view
Mike Richards, director and mortgage adviser of London-based Mortgage Concepts Associates, said: “There are very few lenders at that level, offering anything at 95 per cent that isn’t backed by a government scheme, and those rates are pretty good and the fees aren’t bad either. Often you get a £995 fee and it would have to be paid because without that the debt would go over 95 per cent. At present there’s not a lot of competition at high LTV; I just think lenders are a bit scared of this market. Anybody providing 95 per cent LTV is valuable as long as you can get affordability.”
Charges
Early repayment charges of 2 per cent on two-year products, and 3 per cent on three- and five-year deals. Completion fees start from £300, with a £199 application fee on all products. Free legals are available for those who are remortgaging.
Verdict
The mortgage market is challenging at present, with valuations on properties sky high in some parts of the country. Lenders are worried about plunging back into the high valuation mortgage market, concerned about overextending themselves and the challenges of affordability, despite the recent base rate cut.
In this context, Mansfield is making a welcome contribution to the sector, helping first-time buyers struggling to get onto the housing ladder.
