Mortgage deal of the week: Virgin Money’s two-year deal
Virgin Money’s reduced two-year fixed mortgage - now priced at 2.52 per cent - is the deal of the week, according to Moneyfacts.
The offer is for all customers who borrow up to £1m at 80 per cent loan-to-value.
No fee is payable and an incentive package for remortgage customers of free valuation and free legal fees is available.
It also has the flexibility of being able to make overpayments of up to 10 per cent of the outstanding balance and take payment holidays.
Elsewhere, Yorkshire Building Society Group’s intermediary-only lender Accord has its mortgages for customers with a 10 per cent deposit by up to 0.15 per cent.
The range, available to house purchase customers, includes a 2.84 per cent two-year fixed rate mortgage at 90 per cent LTV with a £845 product fee, £250 cashback on completion and free standard valuation.
Also available is a 3.09 per cent per cent two-year fixed rate mortgage at 90 per cent LTV, with the same fees and incentives, and a 4.54 per cent two-year fixed rate mortgage at 95 per cent LTV, with no product fee, £750 cashback on completion and free standard valuation.
David Robinson, Accord’s national intermediary sales manager, added: “We think these latest rate reductions will appeal to brokers and borrowers looking for value for money from their fixed rate mortgage.
“In addition, the cashback on completion and free standard valuations will help borrowers to keep down the upfront costs of purchasing a home.”
This week Clydesdale and Yorkshire Banks announced their lowest ever remortgage rates, including a two-year fixed rate of 1.79 per cent and a five-year fixed rate of 2.69 per cent, with up to 80 per cent LTV.
Customers will also benefit from no legal, arrangement or funds transfer fees. Those who normally pay for a standard valuation would get this free of charge.
Meanwhile, the Mansfield Building Society has added a specialist product available for regulated activity, light refurbishment and ex-pat landlords, following the re-launch of its buy-to-let business last month.
The new three-year discounted product is priced at 4.49 per cent at a maximum LTV of 70 per cent for regulated and light refurbishment buy-to-let and 65 per cent for ex-pats; who must also complete before February 2016.
The application fee is £199, with a completion fee of £1,300 that can be added to the loan.
Stuart Bryce, business development manager at the society, noted this product has been particularly popular with brokers in the past.
Finally, Coventry for Intermediaries launched a new residential range offering two and five-year flexx-fixed products and flexx trackers with a range of LTVs from 65 per cent, starting from 1.59 per cent.
Moving up from that rate, there’s a 2.39 per cent two-year flexx-fixed deal at 75 per cent LTV and a 3.85 per cent five-year flexx-fixed deal at 90 per cent LTV, both with no arrangement fee.
These new offers come as MoneySuperMarket found fixed term mortgage rates falling again to some of their lowest ever levels.
The comparison site’s analysis found the average rate for a five-year fixed deal currently stands at 3.45 per cent, while last year it was 4.06 per cent and in 2012 it was 4.67 per cent.
Shorter term mortgage deals also follow the same pattern, with the average three-year fixed rate coming in at 3.21 per cent today, compared to a rate of 4.80 per cent in 2012.
peter.walker@ft.com
