Top Mortgage News

nigel woollsey

Nigel Woollsey

Online Writer
Published: 27/01/2020

Shawbrook Bank has announced that it is cutting the number of buy-to-Let (BTL) deals that it offers down to three products. This follows the bank’s move from 10 BTL products down to seven in November 2019.

The three products now available are Single BTL, Complex BTL and Larger HMO (House of Multiple Occupancy). The Single BTL is suitable for property investors looking to borrow a maximum of £750,000. Those who need to borrow more than this sum, as well as those with a multiple property portfolio or small HMO, will be directed to the Complex BTL mortgage product. Finally, there is a dedicated BTL mortgage product for those who need to buy or refinance a property with seven or more tenants.

Shawbrook Bank has also adjusted its interest rates for these products, which now start at 3.25%.

A Government report has revealed that the number of 25-34 year olds getting onto the property ladder has been on the rise since 2014.

Statistics released in the English Housing Survey show that the number of homeowners aged 25-34 has risen from 36% in 2013-14 to 41% in 2018-19. Meanwhile, the proportion of 25-34 year olds renting has fallen from its peak of 48% in 2013-14 to 41% in 2018-19.

While movement lower down the charts picked up this week, the mortgage sector overall continued to be slow, and there were no major changes at the tops of the charts. Saying this, the mortgage charts overall continue to be highly competitive, with low rates available across all charts.

Mortgage borrowers should be aware that when looking for the best deal, the lowest rate might not be the best option. Instead, borrowers should take into account a wide range of factors when choosing a mortgage deal, including product fees, incentives and flexible features.

The Cambridge Building Society has recently announced that it is launching a new range of Credit Assist mortgages, with the aim of targeting residential customers who have a history of missed payments, County Court Judgements (CCJs) or defaulting on credit agreements.

This new range of mortgages replaces The Cambridge Building Society’s previous Home Solutions mortgage products.

Customers will have a choice of either a fixed rate or discounted rate option on both new products, the Credit Assist Mortgage and Credit Assist Mortgage Extra.

The two new mortgage products carry different qualifying criteria, with the Credit Assist Mortgage being available to consumers who have missed up to five payments in the last two years on credit card, mail order or utility bills, as well as those who have unsatisfied defaults within the last two years.

The Credit Assist Mortgage Extra offers hope to customers who have a more challenging credit history, specifically those with three or more unsecured loan repayments, two missed secured loan repayments, as well as CCJs or those who have unsatisfied debts up to £5,000.

Neither of the new mortgage products are likely to be easily suitable to first-time buyers as a minimum of 15% equity is required for the Credit Assist Mortgage options, which rises to 30% equity for the Credit Assist Mortgage Extra products.

Tracy Simpson, head of lending, commented: “At the Cambridge we’re committed to introducing solutions that help a wide range of customers, and our newly launched Credit Assist range specifically aims to help those mortgage customers who have experienced credit issues in the past and who are finding it difficult to secure a mortgage. Credit Assist helps these customers get back on track. In addition, our experienced team review each application on an individual basis, which provides the highest level of support.”

The Cambridge Building Society offers mortgages for residential properties in Bedfordshire, Buckinghamshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Northamptonshire and Suffolk.

For a more in-depth treatment of home-buying options for those with a poor credit background, take a look at our dedicated guide: Obtaining a mortgage if you have a bad credit history. In addition, our mortgage comparison charts give you the low-down on the latest deals across the whole UK marketplace.

Despite not many changes happening in the mortgage charts this week, competitive rates remain at the top of all the charts, with low rates available across loan-to-value (LTV) deals. Saying this, it is important to remember that when looking for the best mortgage deal, the lowest rate might not be the best option. Instead, borrowers should take into account a wide range of factors when choosing a mortgage deal, including product fees, incentives and flexible features.

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