High LTVs on offer to existing customers
23 June 2011 | By Aaron Strutt - Communications Manager at Trinity Financial Group.
Halifax, Accord Mortgages and Yorkshire and Coventry building societies all offer 100%-plus loan to value mortgages to existing customers. Rates are reasonably competitive but some have a big fee.
Halifax offer some of the most generous rates to borrowers if they are in negative equity and this is to a maximum of 120% LTV - the rate is fixed for two-years at 4.74% and the arrangement fee is £999. Chelsea has a 100%-plus LTV two-year fix at 5.69% with no fee. This is also 0.10% lower than their standard variable rate (SVR) at 5.79%.
Cheltenham & Gloucester will stretch to 95% LTV and this is available for existing customers with mortgages up to a rather large £7.5m. Birmingham Midshires has a three-year fix at 5.59% up to 95% LTV with a 1% arrangement fee.
Godiva Mortgages offers existing buy-to-let customers 100% LTV two-year fixes at 5.50% with no arrangement fees. Many residential rates for new customers are higher.
Some lenders seem happy helping existing clients and they generally offer fixes rather than trackers. Nationwide doesn’t offer clients with less than 5% equity the chance to switch. But its base mortgage rate is so good borrowers won’t worry until the base rate rises.
If I was in negative equity I would be pleased my lender was offering me the chance to come off of its SVR and for some it does make sense to switch.
June 23, 2011
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