Mortgages  

The Nottingham launches high LTV range

The Nottingham launches high LTV range

The Nottingham has launched a range of mortgages with high loan-to-value rates, aimed specifically at first-time buyers and people with low deposits.

There are five residential mortgages with a 90 per cent LTV, including a two-year fixed rate at 3.44 per cent, a three-year fixed rate at 3.84 per cent and a five-year fixed-rate at 4.09 per cent.

All have an upfront booking fee of £199, while the three and five-year products also have an £800 arrangement fee.

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The lender has also launched three buy-to-let mortgages at 75 per cent LTV. These include a two-year fixed rate at 3.04 per cent, with a £299 upfront booking fee and a £1,700 arrangement fee.

Chris Gardner, deputy treasurer at The Nottingham, said that the recent fall in CPI inflation pushed back money market expectations of when the base rate will increase, meaning that wholesale swap rates, which are used to price fixed-rate mortgages, have fallen.

“This has given us the opportunity to re-price our range of high LTV mortgages, reducing the fixed rates which guarantee the repayments for an agreed period of time; especially important for first time buyers who quite often require budgeting certainty.”

He added that since the recession in 2008 there has been a long period of falling real wages as inflation has outpaced average earnings.

“Recently there have been more positive signs with CPI inflation falling below average earnings, which are also starting to rise. By cutting the rates on our fixed rate mortgages it will ease the burden on borrowers who have tight budgets.”

The Nottingham offers a free basic valuation for both purchase and re-mortgage as well as a free legal package for re-mortgages and intermediary access to a dedicated underwriting team.

peter.walker@ft.com