Legal & General Mortgage Club has launched two exclusive new build mortgage products with Skipton Building Society aimed at first-time buyers and home movers.
The first product is a two-year new build fix with a 2.65 per cent pay rate, which is available up to 90 per cent loan-to-value (LTV) and comes with free standard valuation, £250 cashback and no completion fee.
The second is a two-year Help to Buy fix with a pay rate of 1.37 per cent, which is available up to 75 per cent loan-to-value and comes with free standard valuation and a £995 fee.
Several lenders have recently boosted their new build offering by easing lending conditions as competition in the sector increases.
In May, Leeds widened the range of warranties it would accept on new homes to provide additional support for the sector after upping new build LTVs to 90 per cent on houses and 85 per cent on flats.
Halifax also recently raised its LTV cap from 80 per cent to 85 per cent on all new build house and flat purchases.
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “Today’s (4 September) announcement further highlights the commitment of Legal & General Mortgage Club to supporting the intermediary market and we will continue to secure the best deals for our broker partners and clients.
“Our relationships with lenders such as Skipton are very important to us, and we believe this offering will prove popular with our members by strengthening the choice available to the customers they serve.”
Daniel Bailey, principal at Derbyshire-based Middleton Finance, said: “The 90 per cent new build fix is very competitive. Free valuation and reduced arrangement fees and associated costs is great news for first-time buyers and home movers.
“Not a lot of lenders lend at 90 per cent for a new build property. Skipton is in quite a small market so it is great they are reducing rates and offering free valuations and cutting fees.”
simon.allin@ft.com
