EYE on: Mortgages and Finance

West One launches fresh initiative to support the bank of mum and dad

West One has today launched an initiative to support the Bank of Mum and Dad via their second charge mortgage range.

Rates within this new range, designed to facilitate family assisted purchases through a second charge mortgage, start from 3.99% at up to 75% loan-to-value.

These products can be used where borrowers wish to gift a deposit to family members looking to get onto the property ladder.

In addition, West One is also reducing its second charge rates for self-employed borrowers as well as introducing a range of two-year fixed rates both starting from 3.99%.

Self-employed borrowers who are the main income earner, can now access West One’s lowest-priced second charge products, providing they can evidence minimum income of £40,000 via their latest SA302 and have been trading for a minimum of two years.

Marie Grundy, West One’s sales director, said: “West One is always looking for ways to bring innovation to the mortgage market. Our Bank of Mum and Dad initiative highlights the flexibility of second charge mortgages and how they can work in tandem with the first charge market. This is particularly relevant at a time when there have been significant supply issues with higher LTV products in the mainstream market mainly affecting first-time buyers.

“In addition to helping the Bank of Mum and Dad, we are continuing our drive to support underserved areas of the market. Our latest set of changes will be of significant benefit to self-employed borrowers whose needs are often more complex and best served by a more bespoke approach to underwriting.”


Hope Capital extends The Seventies Collection

Hope Capital has announced that it is extending the availability of the revamped Seventies Collection products, until 2021.

The two bridging loan products, the Hope 725 and Hope 75, were revised in October for a limited time only, but Hope Capital has made the decision to extend the deals.

The Hope 725 offers the lender’s lowest non-discounted rate of 0.725% per month and up to 72.5% LTV on non-regulated residential property with a loan up to £725,000.

The Hope 75 bridging loan has an LTV of 75% with a reduced rate of 0.74% per month for residential properties with a loan up to £575,000.

The two products, available throughout England and Wales for a maximum loan period of up to 12 months to individuals and companies, will be available on a first charge basis.

Both products are aimed at those who are looking ahead at their investment plans and seeking bridging finance solutions.

Gary Bailey, managing director of Hope Capital, said: “We are delighted with the feedback and response we have received from the initial launch of the enhanced Hope 725 and Hope 75 bridging loan products.

“Providing affordable and flexible solutions to meet the diverse needs of our clients is at the core of what we do. This is why we made the decision to continue these two fantastic products until the end of the year, so we can meet the market demand.”


New specialist property finance comparison site launches

Propp.io, a new specialist property finance comparison site, has been launched.

Going live with over 40 lenders already on the platform, the company specialises in bridging finance and commercial mortgages, simplifying the process for borrowers and driving competition amongst lenders.

Borrowers will now have the ability to view products from several providers, often not available through traditional brokers, without being forced to surrender personal details to access rates on the site.

Through Propp’s optimisation service, bespoke quotes are negotiated for and presented back to borrowers within 24 hours.

Peter Williams, chief executive officer at Propp, said: “Propp has been purpose-built to shake-up the archaic specialist property finance space and bring it in line with the demands of today’s borrowers, who are accustomed to the convenience and transparency of automated technologies and instant, high-quality customer service.

“For too long the industry has rested on its laurels when it comes to automation and real transparency for its customers. The seasoned team we’ve built is committed to leading the industry by example. We’re excited to see what the next 12 months has in store for Propp and our customers who will be looking to us to provide them with the best possible deal during these unusual times.


Yorkshire Building Society launches 90% LTV mortgages

The Yorkshire Building Society has launched a new range of 90% loan-to-value (LTV) mortgages, aimed at first-time buyers and existing homeowners who have been squeezed by the mortgage crunch. It allows buyers to borrow on pre-owned flats and houses, but not new build properties.

With a 3.69% two-year fixed rate, and 3.79% five-year fixed rate, the Yorkshire Building Society’s deal will cost borrowers considerably more than what is on offer to those with bigger deposits.

Comparatively, those buying with 40% deposits are eligible for two-year fixed rates below 1.3%, and five-year fixes below 1.5%.


Average buy-to-let rates continue to increase

The average rates for two-year and five-year fixed rate buy-to-let have increased further, according to new data by Moneyfacts.

The average two-year fixed rate for all loan-to-value brackets at 2.9% is now 0.13% higher than in March prior to the start of the coronavirus pandemic, but currently remains 0.06% lower when compared to November 2019.

The equivalent average five-year fixed rate at 3.26% also sits 0.02% higher than in March but is still 0.14% lower than last November.

The average two-year fixed rate at 60% LTV is now 2.56% and the equivalent five-year rate is now 2.86%, 0.67% and 0.55% above where they were in March.

At 80% LTV the equivalent rates have increased by 0.6% and 0.36% respectively over the same time period, and now sit at 4.16% and 4.34%.

Overall, there has been a marginal decline in BTL product choice, with 1,792 deals currently available, down from 2,611 products a year ago.

Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “After dropping to 1,455 products available to landlords in May, the earlier resilience and increase in product choice in the BTL market seems to have taken a small hit recently, with product numbers now lower than the 1,825 our records show as on offer in October.

“With 1,792 deals now available, we have however seen an increase of 20 products come to market since the start of November, but current totals still represent a 38% contraction in the market when compared to March, before the onset of the pandemic.”



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