Mortgage Options Expanding For December 2020


As we head towards the end of 2020, it appears as though mortgage products are returning to what many people would regard as normal. This has been an extremely challenging year for the mortgage sector, so the return of more mortgage products to the market is very welcome.

YBS is offering a greater range of options

The Yorkshire Building Society has launched a selection of 90% LTV mortgages which are available to first-time buyers, homeowners looking to move, and remortgage customers. The organisation is looking to offer greater choice in a limited market.

The new mortgage products include a two-year fixed rate mortgage at 3.69% and a five-year fixed-rate mortgage at 3.79%. Both these products carry a £995 product fee for home purchasers and remortgage clients.

Ben Merritt, senior mortgage manager at Yorkshire Building Society, said: “We know it’s been a really tough few months for borrowers with smaller deposits but hope returning 90 per cent LTV mortgages to our core range will provide a welcome boost to people wanting to get on to, or move up, the property ladder.”

Ben also said; “We’ve consciously designed the new range to include something for homebuyers, movers and people remortgaging to make sure our options meet the varying needs of those borrowing more money against the value of their house.”

The Co-op is proactive in the mortgage sector

The Co-operative Bank, via their intermediary mortgage brand Platform, is relaunching a range of mortgages which are between the 80% and 90% LTV. They are also set to reduce existing rates by up to 0.49% and are offering £1,000 cashback.

These offers have been made available from Monday 30thn November, with the two-year fixed-rate mortgage available at 90% LTV at 3.74% and the five-year fixed-rate mortgage starts at 3.79%.

Platform is also changing its criteria for first-time buyers, removing the following clauses:

  • First-time buyers must have been employed for at least six months before applying for a mortgage
  • Gifted deposits are note allowed when the loan amount exceeds £500,000

The standard criteria, such as first-time buyers need to be in permanent employment, will now apply.

Carolyne Gregory, director of retail lending at The Co-operative Bank, said: “We have been really keen to offer as many mortgage options as we can to potential customers and now we are not only reintroducing more products but also making some of our mortgages available with a £1,000 cashback option, the highest cashback amount we’ve offered in recent years. £1,000 back in the pockets of borrowers could be put towards the cost of moving, or for some it’s a chance to splash out on something they really want to buy for their new home. We know it’s a tough economic climate out there and this cashback could be a much-needed boost for our borrowers, and unlike the Black Friday and Cyber Monday promotions up for grabs over the next few days, our offer will be around to support customers for a much longer term.”

Carolyne also said; “This latest launch is the most competitively priced product change we’ve made this year and we want to support as many customers as we can to find an affordable mortgage product to help them realise their aspirations of owning their own home. This is also why we have made a fundamental change to our mortgage application criteria for first time buyers to make our range of mortgages even more accessible to them.”

While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.

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