Coventry BS extends interest-only to 75% LTV; Santander tweaks rates and adds deals – round-up
Coventry Building Society has broadened its interest-only lending criteria to lend up to 75% loan to value (LTV), an increase from the previous 50% limit.
The mutual has also reduced the minimum equity requirement for properties outside of London and the South East to £200,000, down from £300,000.
Coventry Building Society will allow the sale of the mortgaged property, sale of another unencumbered property, pension lump sums and stocks and shares ISAs as suitable repayment vehicles.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “We’re continuing to look for ways to give brokers more options when supporting their clients’ homeownership and property goals. By broadening our interest-only criteria, we’re making this option available to a wider range of suitable borrowers.
“These latest changes build on a number of enhancements we’ve made in recent months, all designed to help brokers find the right solutions for their clients.”
The mutual recently introduced borrowing up to 6.5 times income for first-time buyers and raised maximum LTVs on new-build properties to 95% for houses and 85% for flats.
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Santander launches trackers and increases rates
Santander has announced mortgage rate increases and cuts to its new business range, increases to select fixed product transfers and the addition of two-year trackers.
Notable changes include its two-year fixed homemover product at 60% LTV with a £1,499 fee and £250 cashback, which has gone up by 0.02% to 4.94% and the equivalent with a £999 fee which has increased by the same amount to 5.01%.
The fee-free option has seen a similar rise, increasing from 5.24% to 5.26%.
The corresponding two-year fixes at 75% LTV have all gone up by 0.03%, now priced at 5.05%, 5.12% and 5.37%, respectively.
As for rate cuts, Santander has lowered the two-year fixed homemover rate at 85% LTV with a £1,499 fee and £250 cashback by 0.03% to 5.17%. The equivalent product with a £999 fee has fallen by the same amount to 5.24%, as has the option with no fee, which has been cut to 5.49%.
The deal at 95% LTV with no fee and £250 cashback has seen a larger cut of 0.1% to 5.84%.
Santander has increased product transfer rates by as much as 0.21%, which the largest increased applied to the residential three-year fixed 75% LTV with a £999 fee, which is now priced at 5.18%.
The newly added deals include two-year buy-to-let (BTL) remortgage rates with a £1,749 fee. This is priced at 4.25% for a 60% LTV, 4.3% at 65% LTV and 4.35% at 75% LTV.
