Mortgages  

Specialist lenders move to fill gaps in the market

Specialist lenders move to fill gaps in the market

Several lenders came to the market this week with new deals, looking to fill gaps in the market and their own product ranges.

Three high street brands announced new two and five-year fixed rates over the last five days, looking to meet demand from first-time buyers and home movers.

Skipton Building Society launched a new range of two and five-year fixes with a choice of fee and rate blends, while Nationwide made cuts of up to 0.15 per cent on selected five-year fixed rate deals.

Article continues after advert

In addition, Nationwide withdrew its 85 per cent loan-to-value five-year fixed rate product with a £999 fee at 3.24 per cent.

Halifax reduced rates by 0.50 per cent across its 0 to 95 per cent LTV two-year fixed first-time buyer and home mover products.

The lender also cut the rates on 0 to 85 per cent LTV five-year remortgage products by up to 0.45 per cent.

At the more specialist end of the market, buy-to-let lender Foundation Home Loans updated its current prime offerings to include three and five-year fixed products.

Business development director of Foundation Home Loans Paul Brett said they fill a gap in the product range which introducers had identified as an important addition. “By allowing the rental yield calculation of 4.39 per cent rather than the notional rate, we believe this will allow more customers to benefit from our compelling lending proposition.”

Finally, the Dudley Building Society announced a new range of discounted rate products aimed at providing funding for buyers and owners of listed buildings, with the rate discount lasting for the lifetime of the loan.

Having moved to concentrate mortgage distribution exclusively through the intermediary channel, the society is now developing new business niches to meet the needs of its brokers.

Jeremy Wood, chief executive of the Dudley, explained that this is a niche which research found was under represented.

“We believe it is important to support customers who, by occupying these culturally important properties, are helping to keep alive vital parts of our shared heritage. The products we have designed are made more attractive as the discount on the rate we offer extends to the end of the mortgage. ”

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

LenderLTV/Type Headline Rate Product Fee
Skipton Building Society60%/2-year fixed1.46%
Skipton Building Society60%/5-year fixed2.44%
Skipton Building Society60%/5-year fixed2.58% (remortgage)£0
Skipton Building Society60%/5-year fixed2.48% (remortgage)£995
Dudley Building Society70%/discount rate3.99%
Dudley Building Society75%/discount rate4.24%
Foundation Home Loans75%/2-year fixed3.69%2% arrangement fee
Foundation Home Loans75%/3-year fixed3.89%2% arrangement fee
Foundation Home Loans75%/5-year fixed4.39%2% arrangement fee
Halifax75-85%/2-year fixed2.14% (remortgage)£495
Halifax75-85%/2-year fixed2.34% (remortgage)£0
Dudley Building Society80%/discount rate4.24%
Skipton Building Society80%/2-year fixed2.45% (remortgage)
Halifax80-85%/5-year fixed3.84%£495
Halifax80-85%/5-year fixed4.04%£0
Halifax85-90%/2-year fixed3.19%£495
Halifax85-90%/2-year fixed3.39%£0
Halifax85-90%/5-year fixed4.24%£495
Halifax85-90%/5-year fixed4.44%£0
Nationwide85%/5-year fixed3.24%£0
Nationwide90%/5-year fixed3.84%£0
Skipton Building Society90%/2-year fixed3.64%£995
Skipton Building Society90%/2-year fixed3.72%£0
TSB Intermediary90-95%/2-year fixed4.49%£0
TSB Intermediary90-95%/3-year stepped

3.59% (year 1) 4.69% (years 2 and 3)

£995
TSB Intermediary90-95/5-year fixed4.89%£0
TSB Intermediary90-95/10-year fixed and flex5.34%£0