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- The news comes as fellow mutual Nationwide building society, Britain’s biggest, has moved a step closer to securing its takeover deal with Virgin Money.
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The bank, the 10th-biggest mortgage lender, will offer the new rates through brokers from tomorrow . Two-year and three-year fixed rates for remortgage will start from 5.19percent (60percent LTV) with a 995 fee, while two-year fixed rates for purchase will start from 5.09percent with a 995 fee (60percent LTV). It will also cut product switcher deals, for existing borrowers, by up to 0.25 percentage points. The market-leading deal for home purchase is available to borrowers with at least 40percent equity or cash deposit towards their purchase and there is a 999 fee.
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Two-year fixed rates now start from 3.99percent (75percent LTV) with a 7percent fee. Specialist buy-to-let lender Paragon has cut selected rates by up to 0.4 percentage points. Its two-year fixed rates for landlords now start from 4.19percent with a 5percent fee (for energy-efficient homes with energy performance certificate ratings A to C). At the same time, Barclays has slashed fixed rates by up to 0.57 percentage points for purchase and remortgage on loans of between 2 million and 5 million. The five-year fixed rate for remortgage at 85percent LTV is now priced at 5.44percent with a 999 fee. The bank is offering three-year fixed rates for remortgage from 4.99percent with a 999 fee (60percent LTV).
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The two-year product transfer rate for existing customers looking to switch is 4.99percent (60percent LTV) – up 0.27 percentage points. Buy-to-let rates have increased by up to 0.35 percentage points. ‘Now we have a mortgage market where most people are on a fixed rate. Buy-to-let fixed rates will also increase – by up to 0.35 percentage points for two-year fixes and up to 0.3 percentage points for five-year fixed rates.
Barclays is cutting rates for new and existing customers by up to 0.45 percentage points. It is offering a five-year fixed rate for home buyers at 4.34percent (down from 4.47percent) with an 899 fee. This is for borrowers with at least 40percent deposit to put towards the purchase.
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