by Gary Webber
22. February 2010 01:54
High LTV mortgages not just for first-time buyers
Newcastle Building Society today launches mortgages for up-to-90-per-cent LTV borrowers. They're not only intended for first-timers into the housing market, but also for purchasers looking to move on up. What they won't cover is remortgagers looking to increase their borrowing and make up for reduced equity.
The range includes a 2-year tracker mortgage at 4.60% (cheap for such a high LTV, but with a high margin over base rate). There's also a 2-year fixed-rate at 5.95%.
Qualification for these mortgages is measured on income multiples: 3.25 × salary for a single borrower or 3 × joint salary for couples.
It looks like the society has taken pity on struggling would-be first time buyers: "Conditions in the mortgage market have been very difficult for sometime, and they have had a particular impact on the first-time buyer market, where numbers across the UK have fallen year-on-year by around four per cent,” commented their spokesman Steve Urwin.
by Gary Webber
7. January 2010 17:10
A look at the good and bad guys when it's time to revert to your lender's standard rate.
Following yesterday's post on Standard Variable Rate (SVR) increases, we thought we'd round up the current highest and lowest revert-to rates we're aware of.
The range between the best and worst in the market is quite staggering — but then, these are (still) exceptional times.
Best & Lowest Mortgage SVRs:
The following data is correct at time of publishing:
| Lender | SVR |
| Cheltenham & Gloucester | 2.50% |
| Cheshire BS | 2.50% |
| Derbyshire BS | 2.50% |
| Nationwide BS | 2.50%
(for mortgages before 30th April 2009) |
| Lloyds TSB Scotland | 2.50% |
| Bank of Ireland (NI) | 2.99% |
| Coutts & Co | 3.25% |
As you can see, some lenders followed the Bank Of England's movements and are still at 2% (a 'normal' kind of margin) above the base rate. Their customers will be pleased to just sit tight at reversion time!
Worst & Highest Mortgage SVRs:
Meanwhile though, other lenders have acted as if nothing has happened in 12 months:
| Lender | SVR |
| Chesham BS | 6.45% |
| Stroud & Swindon BS | 5.99% |
| Nottingham BS | 5.99% |
| ITL Mortgage | 5.99% |
| Newcastle BS | 5.99% |
| Accord Mortgages | 5.99% |
For an argument on why building societies are putting up SVRs, see yesterday's post. However, if you have one of these lenders' mortgages, you're not going to see the funny side of a standard variable rate nearly twelve times base rate. Re-mortgage options might be a bit limited at the moment, but there's no harm in getting some advice!
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