Colin Bell, Chief Operating Officer of Purely Mortgages says:
“Little change in the market this week as lenders continue the trend of not wanting to lead the two year market into loss leading lending.”
Commentary:
The only significant change this week is the Portman dipping back into the intermediary market with their new two year fixed. At 4.64% fixed until 31/3/07 it is very much the market leading rate in this sector. Funds are again restricted and the product will go very quickly. All I expect to see over the next quarter is the odd small lender dipping below the market, but only slightly, to take a small tranche of funds. There does not appear to be an appetite from the large lenders to enter this arena, and I can understand it, why lend at that level at a loss when you can still draw the funds at around 5%.
Other significant lender moves included the Northern Rock raising some rates and Halifax increasing their trackers to an un-competitive level.
Once again the only advice is to take the rate when it appears. Two year trackers also still represent good value for money and remain static.
Purely Customer Contact: 0800 4 22 00 33 or via its website at www.purely.co.uk
Current ‘Best Buys’
Fixed
Lender
Rate
Term
Initial Rate
APR
Reverts To
Incentives
Early Repayment Charges
Portman Building Society
2.35% Fixed
Until 28/02/07
2.35%
6.2%
6.74%
Beyond term
Portman
4.64%
Until 31/03/07
4.74%
6.7%
6.74%
Within term
National Counties
4.79% Fixed
Until 01/04/08
4.79%
6.5%
6.74%
Within term
Portman Building Society
4.89% Fixed
Until 28/02/10
4.89%
6.3%
6.74%
Within term
Clydesdale
(Semi Exclusive)
4.90% Fixed
2 Years
4.90%
6.8%
6.84%
Free Valuation & Legal Fees
Within term
Discount/Tracker
Abbey
0.31% under Bank Base
2 Years
4.44%
6.7%
6.75%
Within term
Portman Building Society
2.26% discount from SVR
Until 31/03/07
4.48%
6.6%
6.74%
Within term
Intelligent Finance
Bank Base
Until 31/3/07
4.75%
6.0%
5.95%
Free legals and refund of valuation fee for remortgages
Within term
Nottingham Building Society
1.99% Discount from SVR
3 Years
4.65%
6.4%
6.64%
Within Term
Alliance & Leicester
0.01% under Bank Base
5 Years
4.74%
6.6%
6.84%
Within term
First Time Buyer Friendly Products
Lender
Rate
Term
Initial Rate
APR
Reverts To
Incentives
Early Repayment Charges
Bristol & West
4.89% Fixed
Until 31/03/07
4.89%
6.8%
6.84%
95% LTV No HLC to pay, Free Val and legal costs cashback
Within term
Bank of Ireland
1start
5.35%
Fixed
Until 30/04/08
5.35%
6.7%
6.84%
95% LTV Guarantor Mortgage
Within term
Scottish Widows
5.49%
Fixed
Until
30/04/07
5.49%
6.2%
6.09%
100% LTV
Graduate mortgage
Within term
Coventry
MOREgage
Fixed
Until
31/03/08
5.99%
6.7%
6.79%
105% LTV – i.e. can borrow 5% over property value
Within term
Northern
Rock
Together
Fixed
Until
01/02/08
6.49%
7.1%
6.84%
125% LTV – i.e. can borrow 25% more than the purchase price.
£750 help with
costs
Within term
