Four building societies offer new 5pc mortgages
For those looking for a cheap mortgage deal, October marked a significant step in the right direction, when the second stage of the Governments’ Help to Buy scheme was launched three months early.
However, four UK building societies have now launched 5pc mortgage deals, offering potentially cheaper alternatives to the Government-led initiative. All of the building societies offering the deal are owned by the Yorkshire Building Society Group, and include Norwich and Peterborough, Barnsley, Chelsea and Yorkshire.
All of the deals have been made available to consumers on homes with a value of up to £500,000, and the lowest rate on a two year fixed deal starts at 4.89pc. There’s also a fee-free five year fix that that costs 5.29pc.
Another standout feature of these deals is that they are set to be rolled out to remortgage customers from 2014, while the Government scheme is only available to those buying a new home.
This has caused those in the industry to take notice, and Aaron Strutt of mortgage broker Trinity Financial, says that these offerings from the Yorkshire Building Society Group are now the most competitive in the market. He said, “These mortgages will provide a real boost to the first-time buyer mortgage market and will add real competition. If more lenders offered low deposit mortgages like these a few months ago, I don’t think the Government would have been so keen to launch Help to Buy.
“The lenders certainly need to be given a strong push to start offering low deposit mortgages, and it’s great news that they have come back to life again”, he continued.
Need advice?
If you’re looking for a mortgage and need financial advice, please contact our team. Our mortgage advisers are whole of market, meaning we have access to every product available and as such can get the best and most suitable product for you.
Share this..
Related stories
Mortgages
Funding for Lending – Mortgage Approvals on the Rise
There is a positive outlook with regards to the housing market, as British mortgage approvals hit a record high since January, according to figures released by the Bank of England (BoE). October saw a total of 52,982 mortgages approved for house purchases, a rise from the 50,415 approved in September. This beat the forecasts set by economists who settled on a figure of 51,500 when making projec...
Read MoreShared appreciation mortgages under spotlight
The Bank of Scotland and Barclays bank are being taken to court by a group of homeowners who signed up to the company's controversial Shared Appreciation Mortgage (SAM) scheme which was sold in the late 1990s. Under the terms of the agreement homeowners were able to borrow funds and UK remortgages on an interest-free basis with their property used as collateral.
However, the more co...
Mortgage lending still under pressure
The Council of Mortgage Lenders (CML) has today revealed that new home loans increased by 7% in May to £11.3 billion. While the 7% increase on the April figure is obviously a move in the right direction it is still only 10% higher than May 2009 which perfectly illustrates the still subdued level of mortgage liquidity and mortgage agreements in the UK. So what next? The CML is growing more and...
Read MoreIs it too soon to look at fixed-rate mortgages?
As talk about the threat of inflation continues to grow there are some analysts who are concerned that UK base rates could move higher in the short to medium term. However, the vast majority of analysts believe that the threat to the UK economy will not come from inflation but will indeed come from a potential double dip recession. However, it is vital that those with mortgages who are considering...
Read More