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- LendInvest, the specialist BTL lender, has re-entered the five-year fixed rate remortgage market after withdrawing all deals for new customers in August.
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The bank’s two and three-year fee saver fixed rates for purchase will also rise at 90percent LTV. Selected remortgage fixed rates, from 60percent LTV up to 90percent LTV, will increase. HSBC’s current residential remortgage rates start from 4.71percent for a two-year fix and from 4.33percent over five years. Both deals are for borrowers with at least 40percent equity in their home (60percent loan to value) and have a 999 product fee. HSBC has cut selected fixed rates by up to 0.11 percentage points as it aims to grab a larger share of the mortgage market. Virgin Moneyis increasing selected fixed rates for new and existing customers by up to 0.1 percentage points.
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It will encourage lenders to offer 99percent LTV mortgages, which will enable buyers to get onto the property ladder with just a 1percent cash deposit. The ‘effective’ interest rate – the average interest paid by borrowers – on newly drawn mortgages fell by 0.9 percentage points to 5.19percent in January, according to the Bank’s data. This is down from a high of 5.34percent in November last year, which was the highest since the Bank started recording average mortgage rates in 2016. At higher loan-to-value ratios, Barclays’ fee-free two-year fixed rate at 90percent LTV has been increased from 5.43percent to 5.66percent. Some brokers have expressed surprise at HSBC’s rate ries, given the growing market sentiment that the Bank of England could cut interest rates this summer. It comes as other lenders, including Barclays, The Mortgage Works and Bank of Ireland have cut selected rates.