Competition is hotting up in the mortgage market as three more providers start the New Year with a raft of competitive rates for first-time buyers, movers and re-mortgagers. Homebuyers now have even greater choice thanks to a number of new mortgage products and can look forward to reduced monthly outgoings due to significant rate cuts.
Coventry Building Society has launched a range of two- and five-year fixed-rate mortgages with a loan-to-value (LTV) limit from 65% to 85%, which carry a booking fee of £199 and an arrangement fee of £800. Headline deals include a two-year fix at just 2.49% on a maximum LTV of 65% and a 3.99% rate for a five-year fix at a maximum LTV of 85%. The Coventry has also launched a special first-time buyer product with a £199 booking fee. The five-year fixed rate is 4.95% and without an arrangement fee for members (plus £500 worth of IKEA vouchers) and 4.99% with an arrangement fee of £300 to non-members.
Accord has reduced rates on its range of fixed-rate mortgages by up to 0.40%, effective 7th January 2013, with additional incentives such as cashback on completion and assistance with legal and valuation fees. The best two-year rate is 2.49%, based on a maximum LTV of 75%, but with fees of £1,995. A rate of 2.69% is available with fees of £495. Those with a 10% deposit only can get a three-year fix at 4.84% or a five-year deal for 4.64%, both of which carry substantial fees of £1,995.
Toni Roberts, Accord Mortgages product manager, says: "As we always want to ensure we offer the most competitive products possible we have reduced rates across almost our entire range. Allied with the strong emphasis we place on excellent customer service, we believe these new rates will prove very popular."
Halifax has reduced a number of rates across its range and expanded its offering with several new products, available now. It's also offering £1,000 cashback and waiving product fees for first-time buyers on some of its existing fixed-rate mortgages with an LTV of between 75% and 90%.
Among the new mortgage products is a two-year fix at 4.99% with a maximum LTV of 90%, costing first-timers £995. There is a five-year fixed rate for movers and re-mortgagers at up to 90% and 85% LTV respectively, with a £995 fee and rates as low as 3.34%. Rates on two-year trackers for re-mortgagers and movers have been reduced by 0.15%, to as low as 2.64%.
Stephen Noakes, mortgages director at Halifax, says: "We helped over 50,000 first-time buyers get on the property ladder in 2012 and are committed to continuing to support first-time buyers by launching competitive higher LTV mortgages and where possible reduced rates and offer the added bonus of an £,1000 cashback."
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