Mortgage News

There are more signs of the mortgage market starting to stabilise as Clydesdale/Yorkshire Bank brings back its 90% LTV mortgage for first time buyers. The three-year fixed rate mortgage has an initial rate of 2.39%, reverting to 4.55%. This mortgage has no product fee, free valuations and offers £250 cashback.

However, those looking for a mortgage with only a 5% deposit are likely to still face lengthy delays as mortgage lenders still require physical valuations at 95% LTV. Research from Moneyfacts shows that only HSBC currently offers a 90% LTV mortgage that will use automated valuations for both house buyers and those remortgaging. Aldermore Mortgages and Post Office Money offer mortgages at 85% LTV for those buying a home or wanting a remortgage, with Accord (Yorkshire Building Society’s brand for mortgage brokers only) offering remortgage only.

As the housing market starts moving again, mortgage borrowers will be pleased to see that lenders have also started re-introducing deals, especially within the higher loan-to-value market. This means that for consumers who have been putting on hold buying a new property or taking out a new mortgage, now could be the ideal time to start looking into fixing into a two year mortgage deal.

Here, our team of mortgage experts have evaluated the mortgage market, taking into account a range of factors including rate, product fees and incentives, to highlight six of the best two year fixed rate deals currently available on the market.

Since the relaxing of social distancing rules in England last week, which now means physical valuations can once again take place and consumers can move home, a number of providers have started launching higher loan-to-value (LTV) deals.

The mortgage charts have also continued to remain highly competitive this week, with low rates available across the charts. While we’ve highlighted the lowest rates currently available in the charts, borrowers should keep in mind that the lowest rate may not be the right deal for them. Instead, it is important to consider a range of factors such as product fees and incentives, along with the rate when choosing the best mortgage deal.

The Government and the Financial Conduct Authority (FCA) have announced proposals that will see the extension of mortgage repayment holidays for those financially impacted by the Coronavirus pandemic.

To help homeowners who continue to be impacted by the pandemic, the FCA has published new draft guidance for mortgage lenders that will include extending the application period for a mortgage holiday until 31 October 2020. As well as being able to extend existing payment holidays, the new guidance will also allow those who have not yet requested a payment holiday but who are experiencing financial difficulty to now be able to request one.

Commenting on today’s announcement, John Glen, the Economic Secretary to the Treasury, said: “We’re doing everything we can to help people with their finances at this difficult time, and that includes making sure people get the support they need with their mortgages. That’s why we’re working with the banks and lenders to extend payment holidays if people need them.

“Everyone’s circumstances will be different, so when homeowners can pay some or all of their mortgage, they should work with their lender on a plan; but if they are still struggling, I want them to know that help is there.”