Chelsea Building Society’s new two-year fixed rate, priced at 3.64 per cent until the end of January 2018, has been deemed the mortgage deal of this week.
Moneyfacts picked the deal in its round-up and the choice was backed by Daniel Bailey, principal at mortgage brokers Middleton Finance.
This offer is for first and second-time buyers who borrow between £50,000 and £500,000 at 95 per cent loan-to-value.
A fee of £1,675 is payable, of which £1,545 can be added to the advance of the mortgage.
The deal has the flexibility to make overpayments of up to 10 per cent of the mortgage advance, as well as underpayments and payment holidays.
Mr Bailey called it one of the most competitive 95 per cent LTV mortgages on the market. “The arrangement fee can be added to the loan, so this will certainly be a benefit to first-time buyers as associated costs with buying a property can be a concern.”
He also pointed out that Yorkshire Building Society is offering a two-year fix at 3.68 per cent at 95 per cent LTV with a slightly lower arrangement fee of £845, which can be added to the mortgage.
Moneyfacts also liked the look of Newcastle Building Society’s new two-year fixed rate, priced at 3.35 per cent until the end of January 2018.
The deal is for all customers who borrow from £10,000 at 90 per cent LTV.
No fee is payable and an incentive package of free valuation and free legal fees are included.
It also has the flexibility of being able to make overpayments of up to £499 every month.
Borrowers with a 10 per cent deposit will be intrigued by this latest launch from Newcastle Building Society, according to the comparison website. “This deal sits comfortably within the market, and with no fee payable and a great incentive package, this should be a popular choice for borrowers who are looking to keep initial costs down.”
Mr Bailey said that Accord is offering a two-year fixed rate deal at 2.79 per cent at 90 per cent LTV, with no arrangement fee, free valuation and a cashback of £250 on completion of the mortgage; available for home movers and first-time buyers.
Yesterday (17 December), Accord launched a range of short-term fixed rate mortgages for landlords looking to expand their portfolio, with the added incentive of £300 cashback on completion and a free standard valuation.
The two-year house purchase range includes a two-year fixed rate at 60 per cent LTV, with a £2,495 fee, priced at 2.14 per cent and a two-year fixed rate at 75 per cent LTV with a £2,495 fee at 2.39 per cent.
Also this week, TSB announced rate increases to two residential mortgages available through brokers.
The bank’s five-year fixed mortgages, available to homeowners with an LTV of up to 75 per cent, will increase by 0.05 per cent, whilst its five-year fixed rate mortgage with a product fee of £995, available to remortgagees with a LTV up to 75 per cent, will increase by 0.10 per cent.
peter.walker@ft.com
