Easyswitch Mortgages News

Positive growth in housing market continues

2012-05-01T12:02:00.000+01:00

The UK housing market showed continued signs of improvement during April according to the latest figures from the Agency Express Property Activity Index.
Month-on-month data for April 2012 shows that nationwide residential property sales increased by 9.5% – the third consecutive monthly increase – whilst new ‘for sale’ listings also rose by 13.3% compared to March – the fourth consecutive monthly increase.

Given a longer-term perspective, new ‘for sale’ listings during April were the highest since May of last year and the second highest since August 2010, whilst ‘sold’ properties achieved the highest monthly volume since February 2010.

Of the 12 UK regions covered within the Index, 10 saw month-on-month increases in new listings during April, compared to March, whilst 11 regions saw increases in properties sold. For both categories, figures were also reassuringly positive when comparing performances for April with those of April last year. Specific high-flying regions for new listings were Wales – up by 17%, the South West – up 18.9%, Scotland – up 25.8% and the South East – up by 33.4%.

For sold properties, the best regional performers in April followed similar lines with the South East – up 19.4%, Scotland – up 20.5%, the South West – up 29% and Wales – up by 85.4%.

Monthly comparisons of new ‘for sale’ listings for individual towns and cities in April, saw the nation’s hot-spots as Cardiff – up by 32.2%, Glasgow – up 33.4%, Cambridge – up 37.1% and Exeter with an increase of 43.7%.

Market leaders in terms of sold properties were Norwich – up by 50.7%, Carlisle – up 55.2%, Cambridge – up 62.3% and Newcastle with an increase of 67.9%.

Stephen Watson, Managing Director, Agency Express, said:

“Despite concerns over the impact from the ending of the Stamp Duty ‘holiday’ for first-time buyers and the government’s ‘double-dip recession figures’ announced last week, the UK housing market remains in good health.

"Our Property Activity Index offers a different view on the market place compared to other indices...it’s a barometer as to what is happening or is likely to happen in the near future, so with the monthly volume of board movements hitting their highest levels in over two years and consecutive month on month growth since the New Year, I am optimistic that we will continue to see strong performances throughout 2012.”

Bank of Ireland increases SVR

2012-03-07T17:43:00.001Z

The Bank of Ireland has increased its Standard Variable Rate from 2.99% to 4.49%
Bank of Ireland customers have been notified of its intention to increase the SVR on its UK residential mortgage book.
The change will be implemented in two stages.

From June 2012 the SVR will increase by 1% from 2.99% to 3.99%.
This will be followed by a further 0.5% increase in September 2012 from 3.99% to 4.49%

Post Office customer will not be affected by the increase.
This is the first SVR increase the Bank of Ireland has made to its UK residential mortgage book since August 2007.

Bank of Ireland said it was necessary for Bank of Ireland to increase its SVR as the cost of funding mortgages for UK lenders had increased significantly in recent years.

Bank of Ireland has provided a dedicated support line for any customer concerned about the impact of the increase on them

Or you can talk to us at Easyswitch Mortgages for more ideas and options for your mortgage - call us on 08000 124337 or 08456 800898, or you can have a quick look at some of the altenratives on our Remortgage Checker - Click Here to give it a try!

RBS rate increase to hit 200,000 customers

2012-03-05T12:28:00.000Z

RBS (Natwest) has increased interest rates on two of its product ranges, affecting around 200,000 of its existing borrowers, and blamed the increased cost of funding.

It confirmed that interest rates on its offset products increased by 0.25% on 1 March, while rates on its One Account product range will rise by 0.25% from 1 May.

This is the first time in almost four years that offset and One Account customers have seen their rates change, with RBS saying it last changed their rates in June 2008.

The move follows Halifax's decision to increase its SVR from 3.50% to 3.99% from 1 May, also attributed to a sharp rise in the cost of funding.

An RBS spokesperson said: "Over the last year, the cost of funds at which we need to borrow at to fund our mortgage commitments has risen considerably. We have absorbed the cost during this period, but have now decided to pass on some of this increase."

The lender said that the majority of offset and One Account customers would see their rates rise to 4%, the same as the bank's SVR.

The spokesperson added: "We have written to all customers impacted to advise them of the changes. The bank has a full range of alternative options for any customers who prefer to switch from their current product.

"We have around 200,000 customers in total in these categories and last changed their rate in June 2008."

DO YOU WANT TO CHECK IF YOU CAN GET A BETTER DEAL? - CLICK HERE FOR OUR REMORTGAGE CHECKER AND SEE HOW MUCH YOU COULD SAVE!

Source - Mortgage Solutions 05/03/2012

Halifax to raise SVR to 3.99%

2012-03-05T09:20:00.000Z

The UK's biggest mortgage lender Halifax will raise its Standard variable Rate (SVR) from 3.50% to 3.99% on 1 May.

Approximately 850,000 customers have some or all of their mortgage balance on the Halifax Standard Variable Rate, with an average balance of £67,500.

The lender has called in extra call-centre staff today to deal with the increased phone calls.

The average customer will see monthly payments rise by £16.40 and Halifax will be writing to customers to explain a change to its standard variable rate from 1 May 2012.

This follows Halifax's move to raise its SVR cap on 28 February from 3% to 3.75%, which affected roughly 40,000 customers, which will take place on 31 March.

Halifax said the move reflects funding costs as the cost of supporting competitive savings rates and raising money in the unsecured and securitization markets has also risen sharply.

The bank said the average savings rate was 1.27% higher than the Bank of England base rate alongside the fact the cost of a four year securitisation bond has risen 1.34% in five years.

Comparatively, the move keeps Halifax near the middle of the pack on SVR but many lenders will be dealing with the same rising costs.

DO YOU WANT TO CHECK IF YOU CAN GET A BETTER DEAL? - CLICK HERE FOR OUR REMORTGAGE CHECKER AND SEE HOW MUCH YOU COULD SAVE!

According to Moneyfacts, Cheshire Building Society at 2.50% and Stafford Railway Building Society and Bank of Ireland currently offer the lowest UK SVRs, with KRBS offering the highest at 6.08%, followed by MBS Lending at 6% and ITL, Accord and Shepshed on 5.99%.

A Lloyds spokesperson said: "Some broker's clients may be on SVR so this is a good opportunity to contact clients and we will be pointing customers back to their broker when they apply to us. Brokers will also be paid a product transfer fee on every product transfer."

Ben Thompson, MD of Legal & General Mortgage Club, said: "Whilst base rate is unlikely to change this or even next year it is worth periodically checking in with an intermediary to see if a current deal can be bettered. Low rates will not last forever."

DO YOU WANT TO CHECK IF YOU CAN GET A BETTER DEAL? - CLICK HERE FOR OUR REMORTGAGE CHECKER AND SEE HOW MUCH YOU COULD SAVE!

Analysts are predicting a wave of increases in mortgage interest rates after the announcement from Halifax.

Justin Modray, of Candid Money, said the move would probably lead to SVR increases by other lenders: "If one bank can get away with it, others will follow suit quite quickly," he said.

More Accord Product Withdrawals

2012-02-22T17:47:00.003Z

The following 14 products will be withdrawn at 8pm on Wednesday 22 February.

The products being withdrawn are not being replaced. There are no further withdrawals planned at this time.

All 75% Tracker Rates
All 5r Hybrid Products
All 85% Tracker Rates
Both 90% 5 Yr Fixed Rates

For the list of available mortgage options please go to www.easyswitchmortgages.co.uk/accord or call us on 08000 124337

Natwest Withdrawing their Mortgage Range

2012-02-22T17:44:00.001Z

The following NatWest Corporate Range products are being withdrawn with immediate effect

5.69% 2 Year 90% Purchase Fixed

Fixed until 31/03/2014
£999 arrangement fee

3.69% 2 Year 75% Remortgage Tracker

BBR + 3.19% until 31/03/2014
£999 arrangement fee
Free legal & valuation for remortgages

3.69% 2 Year 85% Remortgage Tracker

BBR + 3.19% until 31/03/2014
£999 arrangement fee
Free legal & valuation for remortgages

In the main all mortgage rates are either not being replaced, or replacement products will be higher rates.

New rates will be launched on the 23rd February - please call us on 08456 800898 for more details of these changes, or go to www.easyswitchmortgages.co.uk/natwest

The Mortgage Works Product Changes

2012-02-22T11:10:00.002Z

With effect from tomorrow Thursday 23 February, we'll be making changes to our Buy to Let and Guarantor ranges.

BTL 2 year fixed at 4.49%, up to 75% LTV with a 3.50% fee
Selected BTL 2 year tracker rates increased by 0.15%
BTL 2 year tracker at 3.99%, up to 65% LTV withdrawn
Selected Guarantor products reduced by 0.05%
All end dates extended

For details of other Buy to Let Mortgage options please visit www.easyswitchmortgages.co.uk/mortgage-rates for the whole UK Mortgage Market

BM Solutions to cut BTL rates by up to 0.20%

2012-02-22T09:27:00.001Z

BM Solutions will be relaunching its new business range tomorrow with reductions of 0.20% on all buy-to-let products.

The changes, which apply to all fixed and tracker deals at all LTV levels, follow reductions of up to 0.30% on selected products on 8 February.

As part of the product launch BM Solutions is also introducing some new fixed products at 75% LTV with two product fee options at £995 and 0.50%.

Following the changes, BM Solutions will offer options at four different fee points in the two-year fixed market at 75%.
The lender has also retained a set of products for customers who use the BM Conveyancing service. These products are priced at 0.15% below the core range.

Changes include:

A two-year fix at 5.49% with a 0.50% product fee, available up to 75% LTV and exclusive when taking out BM Conveyancing.
A three-year fix at 5.10% with a 2% product fee, available up to 75% LTV and £790 cashback.
A five-year fix at 5.04% with a 3% product fee and available up to 75% LTV.

Phil Rickards, head of sales at BM Solutions said: "This is our second round of price reductions in as many weeks. By launching some new deals and reducing all rates in the current range, we're really shaking up competition in the buy-to-let market."

Check BM Solutions latest rates by visiting our website - www.easyswitchmortgages.co.uk/bmsolutions or give us a call on 08000 124337

Last minute rush to beat stamp duty

2012-02-22T09:21:00.001Z

The amount lent in mortgages has leapt 10 per cent in the past year as first-time buyers race to seal deals before the stamp duty amnesty ends. Year-on-year figures rose for the sixth month in a row after banks and building societies lent £10.5billion in January, said the Council of Mortgage Lenders (CML). Although seasonal factors meant the figure was 14 per cent weaker than in December, the CML said the performance was in line with improved sentiment in the housing market. The industry body believes the March 24 deadline for the end of the stamp-duty free period for first-time buyers on properties under £250,000 has boosted activity.

Source - Daily Mail 21/2/2012

Leeds BS increases new mortgage lending 25% in 2011

2012-02-22T09:20:00.001Z

Leeds Building Society increased its new residential mortgage lending by 25% in 2011 to £1.23bn, up from £984m the previous year, as profits hit record levels.

In its annual results, the mutual said that mortgage lending was one and a half times its "natural market share", with £290m of the total going to help 4,000 first-time buyers.
The Leeds revealed it plans to increase its mortgage lending further in 2012 and increase the availability of 95% LTV loans.
In a record-breaking year, operating profit at the Leeds reached its highest ever level, rising 21% to £102.4m and beating the previous record of £84.5m set in 2010, while pre-tax profit increased 19% to £50.2m.
Savings balances also hit a new record, rising by £329m to a high of £7.4bn, while total membership rose 58,000 to a record 691,000. Capital and reserves increased by 8% to another record of £572m.
Its strong profitability means the Leeds remains one of just three building societies to hold an ‘A' long-term credit rating from both Moody's and Fitch, it said.
The Leeds' average LTV on new advances in 2011 fell to 51% from 53% the previous year, while residential arrears of 1.5% or more of the outstanding mortgage balance reduced to 3.23% compared to 3.25% in 2010.
The charge for specific provisions for arrears fell by £6m to £34m in 2011, however, the collective provision charge increased from £4.5m to £15m to cover any potential further deterioration in 2012.
Leeds said that, as a result, its total residential and commercial balance sheet provisions increased to £85m in 2011 from £61m in 2010.
Peter Hill, chief executive of the Leeds, said: "Leeds Building Society is both independent and successful, with a strong capital base and has been consistently profitable, despite the challenging environment.
"Throughout the downturn, we have continued to invest in the business and be an active player in the savings and mortgage markets, the benefits of which can be clearly seen in our results.
"We are in an excellent position to continue to focus on doing what we do best: providing good value for money products backed up by excellent service, delivered by our highly professional staff throughout this year and beyond."

Source - Mortgage Solutions 21/02/2012

For more details of the Leeds BS mortgage range visit our website at www.easyswitchmortgages.co.uk or call us on 08000 124337

Mortgage lending up 10% on last year

2012-02-22T09:17:00.001Z

Gross mortgage lending declined to an estimated £10.5bn in January. Lending fell by 14% from £12.2bn in December but was 10% higher than the total of £9.5bn in January 2011, according to the Council of Mortgage Lenders.

The CML said that although a seasonal decline was expected, January was the sixth month in a row of higher year-on-year lending.

CML chief economist Bob Pannell said: “Housing and mortgage market sentiment has improved a little over recent weeks.

“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the Stamp Duty concession ends in March.

“Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year.

“This can only be good news for the housing market further down the track."

Source - Introducer Today 21/02/2012

Leeds BS changes interest-only criteria effective today

2012-02-22T09:13:00.001Z

Leeds Building Society has become the next lender to slash its maximum LTV on interest-only loans, this time from 70% to 50% for deals where the repayment strategy is the sale of the property.

The criteria change is effective from today and also applies to its interest-only lending on shared equity mortgages, but excludes buy-to-let loans.

Leeds - the fifth largest building society in the UK - only accepts two types of repayment strategies; the first, using a savings or investment vehicle and the other through the sale of property.
Where the repayment strategy is an investment or savings vehicle the maximum LTV is 75%. Any additional lending, above the 75% LTV maximum, can be advanced on a capital and interest basis up to 85%.
The society said that no further changes where the repayment strategy is an investment or savings vehicle have been made.

It added that no changes have been made to its packaging requirements and intermediaries continue to have 21 days to submit applications.
Phil Coombes, head of intermediary sales at Leeds building society, said: "Volumes of business do rise when other lenders make changes to their criteria. It's about trying to protect your service levels and looking after your customers."
Last week, Accord mortgages revealed to Mortgage Solutions how it had seen an uplift in interest-only applications after both Santander and Lloyds’ announced changes in this product area.
Lloyds announced it would no longer accept cash savings, including ISAs, as a suitable repayment vehicle and placed restrictions on using stocks and shares as a repayment vehicle. It also said that pensions must have a minimum current value of more than £1m.
This followed Santander's move to cut the maximum LTV from 75% to 50% on interest-only loans.
Trade bodies have claimed that lenders have tightened their interest-only criteria amid fears that they risk being charged if a borrower's repayment vehicle fails to pay back their interest-only loan.

Source - Mortgage Solutions - 20/02/2012

Downgrade in Britain's credit rating could prove expensive for mortgage holders

2012-02-22T09:09:00.001Z

Mortgage rates could rise dramatically if Britain loses its prized AAA credit rating, experts are warning. Last week, UK government debt was put on "negative outlook" by the credit ratings agency Moody's, giving it a 30 per cent chance of a downgrade within the next 18 months. Such a downgrade could not only hit Britain's prestige, but also the pockets of millions of mortgage holders. Ray Boulger, the technical director of broker John Charcol, says: "Any downgrade could push up the rate that the Government has to pay in order to borrow, and if this happens then this should filter through to banks' borrowing costs and ultimately what you pay when it comes time to remortgage."

Source - Sunday Express 19/02/2012

Accord Announce New Deals - Rates Increased

2012-02-22T09:07:00.001Z

New product range from Accord launched

2, 3 & 5 year Fixed rates available from 3.19%
90% LTV Fixed rates available from 4.99%
Tracker to fixed products launched – rates from 2.89%
Range of Offset products available, fixed rates from 3.39%
Selected products offering cashbacks
Selected purchase products with free valuation & £250 cashback
Selected remortgage products with free legal service & free valuation

For further details on Accord’s full semi-exclusive product range visit our website at www.easyswitchmortgages.co.uk/accord or give us a call on 08000 124337

UK house prices down 24% since 2007 - Halifax

2012-02-22T09:05:00.001Z

House prices have fallen by nearly a quarter across the UK since the UK’s property boom in 2007, to an average of £172,427, research has shown.

According to the Halifax bank, average house prices have risen in just two local authorities, Rochford in Essex and South Lakeland in Cumbria, since the peak of the boom.

Halifax said that the rises were "marginal" in these both these areas with a 1% rise in Rochford and 0.1% rise in South Lakeland.
The nine worst performing areas were all in Northern Ireland. In Craigavon prices more than halved from an average of £213,844 in 2007 to £103,383 in 2011.
Martin Ellis, housing economist at Halifax, said: “A striking feature of our analysis of the areas that have fared best and worst in the past four years is a distinct north-south divide.

“Those areas that have weathered the storm best are nearly all in the south whereas those areas worst affected are all outside southern England. Northern Ireland has done particularly badly as much of the sharp gains in the years prior to 2007 have since been reversed."

Earlier this month, Halifax reported that house prices saw a month-on-month rise of 0.6% in January 2012, but were down 1.8% annually. It said the average price of a house in January was £160,907.

Source - Mortgage Solutions 20/02/2012

Home sellers raise prices in highest bounce for ten years

2012-02-22T09:01:00.000Z

In a burst of optimism, new sellers have raised their asking prices by 4.1% – the highest monthly increase since April 2002, and some £70,000 ahead of current actual selling prices.

The average asking price for a property that has come on the market within the last month is now £233,252.

The increase – of nearly £11,000 – is up from January’s average asking price of £224,060 and comes despite a warning that in parts of the country, much stock already on the market is “over-priced and unsaleable”.

Reporting this morning, Rightmove described the biggest hike in asking prices for nearly ten years as “a surprisingly strong uplift given the challenging economic environment”.

But it said that the rise is partly fuelled by cash-rich sectors of the market, where buyer demand is exceeding suitable property supply.

Director Miles Shipside warned sellers: “There is pricing power if you are selling the right type of property in the right place, where enough potential buyers have access to funding.

“But if your local market does not have those characteristics and your price-pump is based on little more than seasonal optimism and an estate agent’s hot air, then be prepared for buyer response to be a let-down.”

He added: “In some micro-markets, sellers have the upper hand, but on the whole, a buyer with cash or a mortgage offer is the one in the driving seat.”

He said there was evidence that after depressed activity for the last four years, some households had simply decided they had to get on and move. He said there could be a growing acceptance of today’s housing market as the ‘new norm’.

He said: “Search activity on Rightmove is up by 19% on January 2011 and it could be a sign that some of those who can afford to move have decided to get on with their lives, driven either by desperation or by coming to terms with the constant barrage of negative economic news being the new norm.

“You can get tired of gloomy news or get used to it, and indeed for some cash-rich buyers, life has moved on to such an extent that it’s like the Lehman Brothers collapse never happened.”

Average weekly listings on Rightmove are currently running at 30% below pre-credit crunch levels, with a weekly run rate of 24,406 new listings.

Shipside said: “Stock levels are still on the high side in some less active parts of the country, but much of that stock is perhaps over-priced and unsaleable.

“However, in some micro-markets, the shortage of existing and new instructions has helped contribute to the largest monthly jump in new selling asking prices for nearly a decade.

“While the mass-market stays at home, those that have access to funding continue to be active and have spending power, resulting in this month’s big price hike.”

Rightmove’s current asking price of £233,252 compares with actual selling prices of £160,907 and £162,228 currently being reported by Halifax and Nationwide respectively.

Skipton cuts BTL rates by 0.2pc

2012-02-16T14:58:00.003Z

Skipton has launched a suite of buy-to-let products with rates cut by up to 0.2%.

The mutual’s 2-year fixed rate at 70% loan to value has seen its rate cut from 4.09% to 3.89% with an application fee of £245 and completion fee of £2,250.
A low fee version of the product also exists at 4.29% with an application fee of £245 and a reduced completion fee of £750 down from £995.
Skipton has also launched a 3-year fixed rate at 4.29% available at 70% LTV with an application fee of £245 and completion fee of £1,050.

Also new to the range is a 5-year fixed rate deal at 4.59% available at 70% LTV with an application fee of £245 and completion fee of £2,250.
Kris Brewster, head of products at Skipton, said: “We recognise that landlords play a vital role in bringing competition and vitality to the struggling mortgage market, as well as providing private letting options for the first-time buyers of the future.
“That’s why we’ve worked hard to cater for their needs with a competitive and varied range of product options since re-entering this market a year ago.
“We’re constantly listening to customer feedback and these latest products reflect some of the features they’ve said they want including a choice of fee arrangements as well as even more competitive rates.”

For more details please visit our website at www.easyswitchmortgages.co.uk or call us on 08000 124337

Platform cuts BTL rates

2012-02-16T14:56:00.002Z

Platform has cut the rates on its entire range of 2-year fixed rate buy-to-let products by 0.20%.

The rate reduction consists of both the standard Buy-to-let range and Platform’s premier buy-to-let range which was launched last month.
Products are available up to a maximum of 75% loan to value and 65% LTV for premier products and also includes products available on a let-to-buy basis.

All products come with free valuation for purchases and remortgages and free standard legal fees for remortgages.
Nick Allen, product marketing manager at Platform, said: “Buy-to-let lending continues to remain buoyant with demand for rental properties remaining high.
“Platform is committed to supporting intermediaries and hope that the reduction in rates on our 2-year fixed rate products will enable them to offer a comprehensive range of competitive products to their clients.”

For more details visit our website at www.easyswitchmortgages.co.uk/platform or call us on 08000 124337

Interest-only clampdown leaves Accord firefighting

2012-02-16T12:20:00.001Z

Accord, the intermediary arm of Yorkshire Building Society has had to delay the launch of its 75% and 85% LTV range until next Monday following an uplift in applications.

The lender was set to launch its new range today but a spokesman for the lender said that Accord became more competitive after several lenders re-priced upwards and Lloyds and Santander both changed their interest-only policies in the last week.

She said: “What kicked it all off was re-pricing because the big lenders all seemed to re-price upwards at around the same time and we did the same two weeks ago which bought us back in line.
“We had everything ready at launch and then exactly the same thing happened again and of course the interest-only announcements followed it. It’s fair to say that we have seen an uplift in interest-only applications after both Santander and Lloyds’ announced changes in this product area.
“We’re trying to be a responsible lender and balance volume with the service and that’s why we’re waiting until Monday before we launch.”

Accord said its 90% LTV products remain available.

Michael Rogerson, director of Ashburton Financial Consultants added: "Brokers are securing a lot of business which needs to be inputted before changes come into force. This is why Accord is getting bigger peaks of business. This is likely to continue to happen while lenders review their stance on interest-only."

Source - Mortgage Solutions - 16/2/2012

Interest-only changes not on radar of remaining major lenders

2012-02-16T12:14:00.000Z

Five major UK mortgage lenders have confirmed that they have no plans to change their current interest-only stances, after the UK’s two biggest mortgage lenders, Lloyds Banking Group and Santander, both restricted criteria within a week of each other.

Nationwide, Barclays, the Royal Bank of Scotland, HSBC and Northern Rock, part of Virgin Money, all told Mortgage Solutions that they had no immediate plans to alter their interest-only criteria.

This follows today's decision by Lloyds to stop accepting cash savings as an acceptable repayment vehicle and take a more cautious approach to investment performance calculations, while Santander last week restricted its new interest-only lending to 50% LTV.
Yet, other lenders' interest-only criteria remains tough and the CML has said that the product will be relegated to a niche sector, despite the FSA relaxing its stance to a "more sensible" approach.
In its latest News and Views, the CML said: "Lenders will still need to restrict the types of vehicles used for repayment purposes and ensure whatever repayment strategy is in place has a reasonable chance of paying off the capital.
"This will still give many lenders cause for concern, despite the FSA making it clear that borrowers, not lenders, will ultimately be responsible for the repayment of the capital."
The CML added: "These proposals will do exactly what the FSA intends them to do - allow interest only to exist as a niche part of the market, but not as an everyday choice for borrowers."
Yet, AMI director Robert Sinclair said he believes the current levels of new interest-only business are already restricted enough to be in line with market and FSA expectations.
However, he added: "These new ‘standards' must only apply to new applications and cannot be applied to legacy business, for which no one ever envisaged such a high hurdle.
"Existing assets, with a haircut and no growth potential and no provision for further savings or investment, seems a very tough approach.
"Brokers are exceptionally concerned and see the delivery of such strict criteria as potentially excluding from the market many customers for whom interest only would be most suitable.
"I expect there to be some interesting discussions between my larger members and the lenders in the coming weeks and months on this."

Source - Mortgage Solutions 16/2/2012

Lloyds announces interest-only changes

2012-02-16T12:12:00.001Z

Lloyds Banking Group (including Halifax) will change how it will assess interest-only repayment vehicles tomorrow.

The changes will apply to all new interest-only and part interest-only mortgage applications and further advances.
The bank will no longer accept cash savings as a repayment vehicle but will still take longer-term repayment vehicles.
From tomorrow(16th February) Lloyds will only lend up to 80% of the value of stocks and shares at their current value.
If a borrower has £100,000 valued in shares, Lloyds will therefore only be able to provide an £80,000 loan.
Lloyds will also require a minimum current value of £50,000 for this to be accepted.
For use as a repayment vehicle, pension savings must have a current fund value of over £1m where only 25% can be used toward the value of the property.

The policy changes do not apply to product transfers, transfers of mortgaged property and there is no change to the maximum loan to value of 75% on interest-only.
Lloyds said the move was part of an on-going review of interest-only which began in May 2010 but confirmed “recent changes in the market” prompted this swift action.
Brokers received a note about the move earlier today.
Customers will be able to use a combination of Lloyds’ acceptable repayment vehicles above of mix and match the acceptable repayment vehicles to reach the minimum £50,000 acceptance criteria.
The exception to this is for sale of other residential property which must have a current equity of over £50,000.
A spokesman from Lloyds said: “We review interest-only criteria and risk controls on an ongoing basis. Following recent changes in the market for interest only mortgages, we have updated the policy for acceptable repayment vehicles.
“The updated criteria, which will apply from Thursday 16 February, will ensure that all interest only borrowers are in a position to repay their loan in full at the end of the term, in line with our responsible approach to this type of lending.”

Source - Mortgage Introducer 16/2/2012

Accord Mortgages Delay Re-launch of New Deals

2012-02-16T12:10:00.000Z

Following the product withdrawal this Monday 13 February, we received unprecedented numbers of applications.
This means that our teams are working hard to process your business. Offering products from tomorrow would further increase our backlog, meaning that we could not deliver the service you have come to expect from us.
To enable us to improve the service we offer you, we've taken the decision to delay the launch until Monday 20 February.

We are 100% committed to returning to normal service as soon as possible - we apologise for any inconvenience you have been caused and thank you for your patience during this busy time.

90% LTV products remain available.

We will update you on Monday morning with details of the products available.

Principality BS Rate Updates

2012-02-16T12:08:00.001Z

Principality BS has replaced its mortgage range (having withdrawn most products the previous day), with new products being priced slightly higher than their predecessors. The new offering of 4.49% fixed to 31.3.17 at 75% loan-to-value, sits towards the lower end of the market, where rates vary greatly between 3.69% and 6.99%. However, unlike many of its lower priced rivals, this deal has no fee payable and does also benefit from an incentive package.

Please call us on 08000 124337 for more details on the Principality BS Deals, or visit our website at www.easyswitchmortgages.co.uk

Update to the Northern Rock product ranges

2012-02-16T12:05:00.000Z

As we continue to enjoy strong sales following a tremendous start to the year, we would like to thank our intermediary partners for their ongoing support.

In response to recent market moves, we are making some changes to our product range as summarised below.

As part of these changes we are increasing the cashback to £750 on our 90% LTV 2 Year Fixed rate at 5.49%. As the window for Stamp Duty relief is drawing to a close we would like to demonstrate our continued support for First Time Buyers.

Your First Time Buyer clients who complete before 24 March may find this helps towards the cost of setting up home or, for those who complete after this date, it may offset some of their Stamp Duty bill. Please remember that £750 cashback is also available to your Next Time Buyer clients.

The key changes we are making to the range are as follows:

Selected 2, 3 and 5 Year Fixed rates will be amended across 70%, 75%, 80% and 85% LTV tiers
Our headline 2 Year Fixed rate will be available at 3.19% up to 70% LTV with a £995 fee
We continue to offer competitively priced Fee Saver Options, with 2 Year Fixed rates starting from 3.59% up to 70% LTV
Fixed rates at 90% LTV will remain unchanged
Cashback increased to £750 on our 90% LTV 2 Year Fixed rate at 5.49%
2 and 3 Year Trackers will be amended. 2 Year Trackers will start from 3.05% up to 70% LTV with a £995 fee

Selected BTL Fixed rates and Trackers will be amended. 2 Year Trackers will start from 3.79% up to 60% LTV with a 2.5% fee

For access to Northern Rock Mortgages please call us on 08000 124337 or visit our website at www.easyswitchmortgages.co.uk/northernrock

Nottingham BS Withdrawing Rates

2012-02-16T12:01:00.000Z

With immediate effect Nottingham are withdrawing the following product

3.59% 2 Year Fixed

Fixed until 01/02/14
Max 85% LTV
£199 Booking fee
£800 arrangement fee
Free valuation
Free legal fees for remortgages
Product code: FXR799

Please note other Premier Club products have also been withdrawn.

No new products have been announced at this current time, please call for more details, or go to our website for more options - www.easyswitchmortgages.co.uk