EYE on: Mortgages and Finance

TSB launches new first-time buyer range

TSB has launched a new range of products aimed specifically at first-time buyers, with ratest starting from 1.34%.

The mortgages will enable first-time buyers to automatically move onto a follow-on tracker rate that is lower than the existing TSB Homeowner Variable Rate after the fixed period ends.

The new range includes fixed two-year, five-year and 10-year products, as well as five-year and 10-year fix and flex products.

Following the end of the fixed term, customers will move onto a lower follow-on tracker rate of 2.49% above base rate and currently 2.59%, instead of the current TSB Homeowner Variable Rate of 3.59%.

The lower follow-on tracker rate will allow first-time buyer applications to be stressed at a lower rate of 5.6% instead of 6.6%.

The product range also includes a new five-year fixed stepped down product just for first-time buyers, with rates starting from 2.54%.

Nick Smith, TSB’s head of mortgages, said: “We know that buying your first home can be difficult and we want to do more to help first-time buyers get on the property ladder. That’s why we’re introducing this new suite of mortgage products giving customers money confidence to search for their first home.”


Barclays introduces two new 85% LTV products

Barclays has launched two new 85% loan-to-value (LTV) products, with a two-year fixed rate deal available at 3.04% and a five-year fix at 3.14%.

Both products include a maximum loan value of £500,000, and are offered within the Barclays Green Home Mortgage range – available for residential purchase applications on qualifying new build properties.

But the property must be associated with one of Barclay’s partner housebuilders.


Newcastle Intermediaries unveils new 80% LTV deals

Newcastle Intermediaries has added two new 80% LTV mortgage products to its existing range.

A two-year fixed rate is available at 1.89% while a five-year fixed rate is offered at 2.29% – both products are available at a maximum LTV of 80%, subject to a product fee of £999.

John Truswell, head of intermediary mortgages at Newcastle Building Society, commented: “We’re pleased to be introducing a further two competitive 80% mortgages to our current offering to increase product options for brokers and their clients.”


Coventry for Intermediaries to introduce new products this week

Coventry for Intermediaries will be adding new products to its owner-occupied mortgage range this week, along with some new deals for purchases.

The new products, which will focus on remortgages, product transfers and further advances, will be available at up to 75% LTV and will come into effect on Thursday 29 October.

Jonathan Stinton, head of intermediary relationships at the Coventry Building Society, commented: “We’re continuing to look at ways to broaden our support across the market throughout this period of high demand.

“Although the stamp duty holiday has boosted the number of property purchases, brokers will be well aware that demand is also thriving among clients coming to the end of mortgage deals.

“While we’ve seen a lot of activity in the market with product changes, we’ve been expanding our range over recent weeks. Our service levels remain as strong as ever and by improving our offering on remortgages, product transfers and further advances, we’re increasing the options available to brokers and their clients.”


Staff at Lloyds to work from home until Spring 2021

Lloyds Banking Group has told thousands of employees to continue working from home until at least Spring 2021 due to the Covid-19 pandemic.

The majority of Lloyds’ staff are currently working remotely, however staff continue to work in high street branches.

The group, which includes Lloyds Bank, Halifax, Scottish Widows and Bank of Scotland, says that the decision was in line with guidance from the UK government which recommends work from home measures to mitigate the spread of Covid-19.

The CBI last month described the prime minister’s call for people to work at home where they can as a “crushing” blow that would have a “devastating impact”.

CBI director-general Carolyn Fairbairn told the BBC: “The impact on people who are coming back into their offices, the impact on city centres, so dependent on the bustle of city life, our creative industries – this will have a devastating impact on people and businesses.”


MCI appoints Hinckley & Rugby Building Society to its growing panel

The MCI mortgage club has appointed Hinckley & Rugby Building Society to its growing panel of lenders.

Hinckley & Rugby has a novel approach to underwriting with manual underwriting and no credit scoring. It also offers all brokers using the MCI club the option to use its mortgage referrals committee to consider individual cases.

The Mortgage Referrals Committee reviews complex cases, often providing a same-day outcome.

Hinckley & Rugby offers residential, buy-to-let, self-build and later-life lending products. Alongside these products, members will benefit from access to its ‘joint borrower, sole proprietor’ mortgage, split terms and maximum age of 85, with earned income being taken to age 75.

Mortgages available within the Hinckley & Rugby’s buy-to-let range include top slicing, portfolio landlords, buy-to-let capital raising, first-time buyer, first-time landlord, and non-owner occupier.

Melanie Spencer, head of the MCI mortgage club, said: “With a growing demand in the need for products both from specialist lenders and from building societies, we are pleased that Hinckley & Rugby is joining our panel of lenders.

“I was particularly impressed with the mortgage referrals committee that meet on a daily basis, that can assess individual cases and the broad range of products that our members will have access to. We constantly look to refresh our mortgage panel so that our members have access to the mortgages that they need to cater for their clients’ changing circumstances.”

Emily Smith, National Account Manager at Hinckley & Rugby Building Society, commented: “We have remained a consistent lender throughout these uncertain times and our niche lending products are a popular choice for brokers whose clients need individual consideration of circumstances. We hope our approach brings extra support to the MCI Club members.”

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