fbpx

Lenders wage war to lure first time buyers

The Nationwide Building Society and the Halifax have waged in a war of mortgage rates recently, as they both launched products with lower rates to attract first time buyers.

Halifax was the first to introduce a new, lower rate by taking 0.3% off its two year fixed rate deal for applicants with a Loan To Value (LTV) ratio between 85% and 90%. The lender now offers a two year fixed rate product for LTV of 80% at 3.44%, although it has a large fee of £1,499. Its five year fixed rate product for LTV of 90% is now 3.99% with a fee of £999.

If first time buyers are looking for a new build and have a deposit between 10% and 15%, the Halifax offers a deal at a rate of 3.79%. A cash back offer has also been launched by the Halifax, offering £750 on completion of a mortgage deal, along with payment of basic legal fees and a standard valuation.

Nationwide followed suit by cutting rates on all its fixed rate deals. A 10 year fixed rate product for all borrowers is now 2.99%. The lender also offers lower rate deals on its other products, along with cash back offers and fee free deals.

Some experts are predicting that the Bank of England may cut the base rate to 0%. However, others warn that mortgage rates may continue to increase, especially due to the uncertainty if the UK vote to leave the EU.

Mortgages are a complex subject which is why advisers undertake extensive CeMAP training to gain the required knowledge.

Share:

Facebook
Twitter
Pinterest
LinkedIn
Related

Related Posts

CeMAP Course Online pop up
Update cookies preferences