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Mortgage Market Update - 5th May 2020

Another week in the UK mortgage market where lenders continue to relax criteria, here are some of the key lender announcements this week:

  • Coventry Building Society has reintroduced loans up to 75% for residential and BTL remortgages although capital raising remains at 65%. Coventry are particularly good in the self-employed arena and due to Covid 19 are taking additional measures to ensure businesses are still solvent. The measures include asking for 3 months business statements as well as each case being individually assessed. These measures are only for residential mortgages and aren’t required for BTL mortgages.
  • Santander has returned to the Help to Buy market with loans of up to 60% from Friday 1st May with 2 and 5 year fixed rates available.
  • We have heard that mortgage lenders are going to waive their rules on customers doing product transfers on payment holidays across the board. To date we’ve seen individual lenders announce that they will accept this but UK Finance have announced that lenders will be doing this as the norm and not the exception. Typically, if a customer is on a payment holiday, they are not permitted to switch rates until they are out of it, but exceptional times have seen exceptional measures put in place and it’s great to see another example of lenders stepping up to the plate to help customers through these challenging times.
  • Hodge Bank are back lending on both Purchases and Remortgages up to 60% LTV. They are using desktop valuations capping out at 60%.
  • As of Wednesday 29th April, BM solutions are back offering products up to 75% up from 60% earlier this week.
  • Bank of Ireland for Intermediaries have confirmed that where you have clients that have already exchanged contracts, they will be able to extend their mortgage offer by up to 3 months to allow them the extra time they may need to complete whilst complying with social distancing rules. Either your client can contact them directly or you can do this on their behalf. This is for both Residential and Buy to Let mortgages.
  • Metro Bank have said that they have made the process for requesting a payment holiday even easier for their customers. They can now apply online in addition to calling, emailing or requesting a call back.
  • Commercial lending still remains limited with many lenders suspending any new applications.
  • Halifax to reduce rates on certain products on Monday 4th May.

Here are some options available through Connaught Private Finance

Residential

Residential purchases

  • 2 years fixed rates at 1.19%
  • 5 years fixed rates at 1.41%
  • Tracker mortgages from 1.39%

Residential remortgages

  • 2 years fixed rates at 1.14%
  • 5 years fixed rates at 1.34%
  • Tracker mortgages from 1.29%
Buy-To-Let
  • 2 years fixed rates at 1.19%
  • 5 years fixed rates at 1.62%
  • Payrate products available from 140% of 2.59%
  • Top slicing available
Company Buy-To-Let
  • 2 years fixed rates at 2.89%
  • 5 years fixed rates at 2.89%
  • Rental calculation 140% at payrate

Here are some examples of products that Connaught Private Finance arrange on your behalf

  Halifax Connaught Private Finance
Mortgage Value £600,000 £600,000
Current Balance £350,000 £350,000
Term Remaining 20 years
Capital and interest
Same terms
2 year fixed rate at 1.12%
Monthly Payments £2,176.67
(Standard variable rate at 4.24%)
£1,628.44
Monthly Savings   £548.23

Buy-To-Let Mortgage Lender compared to Connaught Private Finance

  Birmingham Midshires Connaught Private Finance
Mortgage Value £600,000 £600,000
Current Balance £350,000 £350,000
Term Remaining 20 years
Interest only
Same terms
2 year fixed rate at 1.19%
Monthly Payments £1,295
(Standard variable rate at 4.44%)
£347.08
Monthly Savings   £947.92

If you would like to discuss your current situation, then please call: +44 (0)20 3394 0018 or email: bhhs@connaughtpf.com

 

Click here for further information about Connaught Private Finance

Did you know...overvaluing your home by just 5% can result in half the interest on your property!

We understand how vital it is to give an accurate valuation. We do not believe in 'overvaluing' to win an instruction. Once you are a client of ours, we like to believe that you will be with us for life, for all your property needs. For us, trust is very important, so we aim to be honest with you from the very start. We will do our upmost to help you achieve the highest price possible, whilst presenting the most suitable buyers or tenants. It all begins with a valuation...