Teachers comes top of the class with rate cuts and three-year offer

Teachers comes top of the class with rate cuts and three-year offer

Teachers Building Society has lowered the rates on a range of mortgages and launched a three-year fixed-rate mortgage.

The reduced fixed rates, intended for teachers and local residents, include a two-year fixed-rate mortgage and remortgage, and two three-year fixed- rate mortgages. These are all available at 80 per cent or 85 per cent loan-to-value (LTV).

The rate reductions amount to up to 40 per cent.

The two-year fixed-rate mortgage at 80 per cent LTV, is fixed at 2.39 per cent, then reverts to the standard variable rate, which is currently at 4.5 per cent for the rest of the term. The arrangement fee is £899, and there is an application fee of £99.

The two-year fixed-rate remortgage at 80 per cent LTV is set at 2.61 per cent, then it reverts to SVR of 4.74 per cent for the terms. There is no arrangement fee, and only a £99 fee. The three-year fixed-rate mortgage at 85 per cent LTV is offered at 2.89 per cent with an arrangement fee of £899 and an application fee of £99.

The three-year fixed-rate mortgage, which is purchase-only, at 80 per cent is offered at 2.59 per cent, and then it reverts to the SVR, standing at 4.74 per cent. The arrangement fee is £899 and the application fee is £99.

Provider view

Andy Yates, business development manager at Teachers, said: "We are pleased to have made reductions to a range of our rates to reflect the current market place and provide borrowers with a range of mortgage options.

"Fixed rates meet the needs of many who seek the reassurance of fixed monthly payments, and at Teachers we now have a good range of three-year fixed rates for borrowers, as well as a teacher-special five-year fixed rate, which we have also re-launched for teachers this year."

Adviser view

Georgina Partridge, partner of Plutus Wealth Management, said: “It would be interesting to know what they (Teachers Building Society) are able to provide over and above a normal high street lender. 

There are lots of two, three and five-year fixed-rate options out there and some very good rates under 2 per cent, especially if the borrower has 15 per cent or 20 per cent deposit available.  

For first-time buyers, there are many lenders out there who are willing to lend, and lots of fantastic rates available. There are even lenders out there that will go up to 95 per cent [loan-to-value] LTV if they do not have a large deposit available.

 “There is not any information about how much they would lend and whether the multiples are greater than going to a high street lender.  Although lenders work on affordability calculators as a rough idea, you should be able to borrow around four and a half times your income. Some lenders even go up to five times multiple.

Charges: Arrangement fees of £899 and application fees of £99.

Verdict

The rates are nothing out of the ordinary for the house mover or remortgagor; with interest rates still at historic lows, and likely to stay that way for some time, mortgages across the board are relatively cheap, and as usual, the greater the deposit, the cheaper the deal. 

Comments