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Santander’s High Loan-To-Value Mortgages A Sign Of Confidence In Lending Market

The bank is creating a series of high loan-to-value (L.T.V.) mortgages aimed at servicing customers with good credit ratings.

Santander are looking to entice customers wanting competitive interest rates over a set time period, offering £250 in the form of cashback available to selected accounts. Santander’s managing director of mortgages, Miguel Sard Says the offers look to appeal to those wanting “to move up and lock in to a competitive fixed rate, including first time buyers and those seeking to remortgage.”

The bank realises that “some customers keen to take the second step on the property ladder can find it difficult” and hope the high L.T.V. mortgages can make taking the next step on the property ladder more feasible.

The fact that the bank is willing to accept the higher risk that comes with high L.T.V. loans is evidence of a returning sense of confidence among lenders. It is notable however that this is not a return to the over 100% L.T.V. mortgages available before the crisis in the credit market.

The Products

Santander will offer as much as a 90% L.T.V. mortgage fixed for five years at a 3.14% rate which will require the payment of a £995 product fee. Further offers include an 85% L.T.V. mortgage fixed for five years at a 2.79% rate with no product fee and an 80% L.T.V. mortgage fixed for two years at a 1.64% rate with a £995 product fee.

The £250 cashback will be available to selected accounts in the intermediary market and consist of a 90% L.T.V. mortgage fixed for two years at a 2.34% rate with a £995 product fee and a 75% L.T.V. mortgage fixed for two years at a 1.39% rate with a £995 product fee.

The entire range of mortgages will be available for both purchase and remortgaging purposes.

For Independent Mortgage advice please contact us at Hoskin Mortgages for more information.

Clare Allen.

Hoskin Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority number 613005. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Mortgage Credit Directive by Ian Chambers at Hoskin Home Loans.

Mortgage Credit Directive is almost upon us and as with all change people are apprehensive but also excited especially in the second charge industry as predictions are that it will be able to gain some of the remortgage markets share of business.

Research has shown that equity released and withdrawn through remortgaging was up by 30% compared to the previous year.

However it is widely thought within the industry that with the implantation of MCD (Mortgage Credit Directive) that the second charge sector will challenge the remortgage market and we will see uplift in demand for secured loans.

Once regulation is in place more borrowers will view secured loans as a viable alternative to a remortgage.

Increased borrowing options for consumers will only be beneficial as they have more chance of finding the right loan to suit their needs.

The Regulator is keen to see the second charge market grown and MCD will help this provided brokers are properly educated. MCD will drive out those who should not be in the market and will drive business to those that do the job right.

The industry has seen lots of changes in recent times and lender, brokers, advisors and packagers alike will adapt because that is what they have always done.

Here at Hoskin Financial, the Secured loan packaging arm and the Mortgage department at Hoskin Mortgages have been working closely together over the last few months and look at each and every remortgage case to see if indeed a remortgage is the right product for a client whether it’s a residential property or a buy to let property.

Clare Allen from Hoskin Mortgages said “I was aware of the need to look at secured loans as an option but it has been invaluable to work closely alongside a secured loan packager and I feel happy and confident that I am looking at the best option for my clients and they are being armed with all the information to make an informed decision.

In closing we are ready for the changes largely thanks to the support of our lending partners and are looking forward to a successful year.

Ian Chambers @HoskinHomeLoans

Thinking of Re-mortgaging

Great tips from the Money Saving Expert website on thinking about re-mortgaging.

Extracted from website by Martin Lewis  

·         Why should I remortgage?

Because it could save you money and reduce your monthly expenditure. Cutting 1% off a £100,000 mortgage will cut costs by £60-80 a month just by remortgaging to a better rate.

Read the rest of this entry