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This week’s biggest change appears in the tracker table, with providers offering new products in line with the recent Bank of England base rate cut. New term deals that appeared in the weekend papers include the Woolwich at 5.74%, Cheltenham & Gloucester at 5.85% and the Co-operative at 6.04%. John Myers, Head of Mortgages. |
Fixed rates
| Lender | Initial Rate | Rate Duration | Standard Variable Rate | Overall cost for comparison |
Max LTV |
 | |||
| HSBC Bank | 5.39% | 30/06/13 | 6.50% | 6.3% APR | 90% |  |
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08453 62 40 87 |
| The HSBC Bank has an excellent 5-year fixed rate available at 5.39%. The LTV is only 90% and the fee is £999. As this is a mortgage special you will have to act fast as it will only be available for a limited time. | |||||||||
| Woolwich | 5.49% | 31/07/11 | 7.39% | 6.1% APR | 60% | |
08456 30 17 57 | ||
| A 3 year fixed product is available from the Woolwich. The rate is decent enough at 5.49% and the fee is £995. However, the drawback is that you will need a deposit of 40% so it's more suited to remortgage customers. | |||||||||
| Bradford & Bingley | 5.59% | 31/05/10 | 7.09% | 7.2% APR | 95% | |
08453 62 93 11 | ||
| The Bradford & Bingley make an appearance in the Mail on Sunday with a 2-year fixed rate of 5.59%. With a current LTV of 95% it will appeal to first time buyers looking to get on the property ladder. The fee is £999. | |||||||||
| Bradford & Bingley | 5.59% | 31/05/18 | 7.09% | 6.4% APR | 95% | |
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08453 62 93 11 |
| Bradford & Bingley are offering a long-term 10-year fixed rate of 5.59%. The fee is £999 but as with all their products you only need a 5% deposit and there is no Higher Lending Charge, a good all round deal. | |||||||||
| Yorkshire BS | 5.84% | 31/05/10 | 6.90% | 7.1% APR | 75% | |
|
08456 30 17 10 | |
| For those looking at a short term fixed deal, the Yorkshire is offering at rate of 5.84%. The fee is £995 but you will need a 25% deposit. Overpayments of up to 10% are allowed each year in the fixed period without penalty. | |||||||||
| Manchester BS | 5.99% | Term | 7.34% | 6.2% APR | 85% | |
08456 30 16 70 | ||
| The Manchester Building Society offers a long-term fixed rate for the term of the mortgage. The rate is 5.99% and a 15% deposit is needed. The product comes with no ERC and a 2% loyalty bonus is paid on the 10th and 20th anniversaries. | |||||||||
Discounted rates
| Lender | Initial Rate | Rate Duration | Standard Variable Rate | Overall cost for comparison |
Max LTV |
| |||
| HSBC Bank | 5.43% | 2 Years | 6.50% | 6.6% APR | 90% | |
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|
08453 62 40 87 |
| The HSBC Bank have this mortgage special on offer, it’s a 2-year discount rate of 5.43%. An excellent rate and it comes with a 90% LTV and a fee of £999. As it’s a special offer it might not be around for long. | |||||||||
| Co-operative Bank | 5.64% | 3 Years | 6.99% | 6.8% APR | 90% | |
08456 30 16 96 | ||
| The Co-operative Bank has reduced their discount products in line with the base rate cut. The new rate is 5.64% and only a 10% deposit is required. Incentives include overpayments, underpayments and payment holidays. | |||||||||
| Cumberland BS | 5.83% | 01/06/13 | 6.74% | 6.6% APR | 90% | |
|
08444 82 60 23 | |
| For those who like discount products, the Cumberland offers a five-year rate of 5.83% with a LTV of 90%. The main attractions include no arrangement fee, a refund of up to £260 on the valuation fee and £250 towards your legal fees. | |||||||||
| Bradford & Bingley | 6.04% | Term | 7.09% | 6.4% APR | 95% | |
08453 62 93 11 | ||
| The Bradford & Bingley make another appearance in the week’s email, this time with a term discount product. The rate is 6.04%, which is 1.05% off the SVR, the fee is £999 and only a 5% deposit is needed. | |||||||||
| Market Harborough BS | 6.10% | Term | 7.30% | 6.3% APR | 75% | |
|
08444 82 35 02 | |
| The Market Harborough return to the best buy tables with a term discount product. The rate is 6.10% and the fee is £995. It comes with £250 Cashback and you can offset your savings to reduce the interest paid on the mortgage. | |||||||||
Base rate trackers
| Lender | Initial Rate | Rate Duration | Standard Variable Rate | Overall cost for comparison |
Max LTV |
| |||
| HSBC Bank | 5.48% | Term | 6.50% | 5.7% APR | 90% | |
08453 62 40 87 | ||
| The Mail on Sunday featured this re-mortgage only product from the HSBC Bank. The rate is +0.48% above the base rate for the term of the loan, giving a current rate of 5.48%. The fee is £599. | |||||||||
| Mansfield BS | 5.55% | 2 Years | 7.34% | 6.4% APR | 75% | |
|
08456 30 16 90 | |
| This local provider again appears in the weekend papers, this time with a 2-year tracker product. It tracks the base rate by +0.55% giving a current rate of 5.55%. The fee is £999. | |||||||||
| Nationwide BS | 5.74% | 3 Years | 6.74% | 6.8% APR | 75% | |
08452 23 04 28 | ||
| The Nationwide Building Society is offering a 3-year tracker product with a rate of 5.74%. This exclusive product tracks the base rate by +0.74% and comes with a fee of only £599, but you will need a 25% deposit. | |||||||||
| Woolwich | 5.74% | Term | 7.39% | 5.9% APR | 60% | |
08456 30 17 57 | ||
| The Woolwich have reduced their base tracker in line with the rate cut. The term tracker is now 5.74% with an added bonus of having no booking fee, however you need a large deposit of 40%. | |||||||||
| Cheltenham & Gloucester | 5.85% | Term | 7.00% | 6.5% APR | 80% | |
08456 30 17 71 | ||
| The C&G appear in the Sunday Telegraph with a long-term tracker product. The rate is reasonable at 5.85% and the fee is £995. To apply for this rate you will need a deposit of 20%. | |||||||||
| HSBC Bank | 5.99% | Term | 6.50% | 6.2% APR | 90% | |
08453 62 40 87 | ||
| The HSBC featured in the Sunday Telegraph with a term tracker rate of 5.99%. It tracks the base rate by +0.99% for the term of the mortgage and has the added bonus of having no arrangement fee. | |||||||||
| Co-operative Bank | 6.04% | Term | 6.99% | 6.3% APR | 90% | |
08456 30 16 96 | ||
| The Co-operative has released a new term product with a rate of 6.04%. You only need a 10% deposit and the fee is reasonable at £699. There’s no ERC so it won’t cost you anything to move your mortgage. | |||||||||
| Newcastle BS | 6.25% | Term | 7.22% | 6.6% APR | 75% | |
08453 62 85 98 | ||
| The Newcastle appeared in the Sunday Telegraph with a term offset rate of 6.25%. You will need a large deposit of 25% but incentives include no ERC and a cashback sum of £200. | |||||||||
Buy to let mortgages
| Lender | Initial Rate | Rate Duration | Standard Variable Rate | Overall cost for comparison |
Max LTV |
| |||
| Cheshire BS | 6.19% | 2 Years | 7.14% | 7.3% APR | 85% | |
08452 91 37 66 | ||
| The Cheshire Building Society is offering a fixed 2-year BTL rate of 6.19% with a LTV of 85%. Applicants must be at least 25 Years old and have a single income of at least £20,000 or a joint income of £30,000. | |||||||||
| Scarborough BS | 6.44% | 29/08/11 | 7.49% | 7.7% APR | 70% | |
08453 62 84 51 | ||
| The Scarborough is offering a base rate tracker buy-to-let product. The rate is 6.44% that will track the base rate by +1.44% for 3 years. The fee is £1,295 but the Maximum LTV is 70%. | |||||||||
| Skipton BS | 6.49% | 30/04/13 | 7.50% | 7.5% APR | 75% | |
08451 89 80 26 | ||
| The Skipton appear in the Mail on Sunday with a 5 year fixed BTL product. The rate is 6.49% and it comes with a fee of £999. The minimum property value is £50,000 and you need a 25% deposit. | |||||||||
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Fixed rate mortgage
A mortgage where the interest rate payment is fixed for a specific time. It then normally reverts back to a variable rate.
Discounted rate mortgage
A discount offered by mortgage lenders to borrowers, reducing monthly mortgage repayments often for the first two or three years of the loan period.
Base rate tracker
As their name suggests the rates of tracker mortgages change to follow "track" changes in the base rate to which they are linked. So if the base rate increases by 1%, the pay rate will increase accordingly. Also if the base rate is reduced, borrowers will benefit from a lower pay rate.
Capped rate mortgage
A loan where the maximum rate of interest is set at the start of the mortgage. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.
Buy to Let mortgage
A mortgage used to buy property which is to be used solely for the purposes of renting out to a third party.
LTV (Loan to Value)
The amount of mortgage expressed as a percentage of the property value. For example, if your mortgage amount was £80,000 and your property is valued at £100,000 your loan to value, or LTV, is 80%.
Product Fee
Charged to arrange a loan on certain products. Usually applied to loans where a special interest rate applies
e.g. fixed or capped rates.
Early Repayment Charge
A charge payable on some mortgages if they are repaid early (during an Early Repayment Charge period).
The amount depends on the mortgage outstanding and the terms of the mortgage.
A mortgage where the interest rate payment is fixed for a specific time. It then normally reverts back to a variable rate.
Discounted rate mortgage
A discount offered by mortgage lenders to borrowers, reducing monthly mortgage repayments often for the first two or three years of the loan period.
Base rate tracker
As their name suggests the rates of tracker mortgages change to follow "track" changes in the base rate to which they are linked. So if the base rate increases by 1%, the pay rate will increase accordingly. Also if the base rate is reduced, borrowers will benefit from a lower pay rate.
Capped rate mortgage
A loan where the maximum rate of interest is set at the start of the mortgage. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.
Buy to Let mortgage
A mortgage used to buy property which is to be used solely for the purposes of renting out to a third party.
LTV (Loan to Value)
The amount of mortgage expressed as a percentage of the property value. For example, if your mortgage amount was £80,000 and your property is valued at £100,000 your loan to value, or LTV, is 80%.
Product Fee
Charged to arrange a loan on certain products. Usually applied to loans where a special interest rate applies
e.g. fixed or capped rates.
Early Repayment Charge
A charge payable on some mortgages if they are repaid early (during an Early Repayment Charge period).
The amount depends on the mortgage outstanding and the terms of the mortgage.
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