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The return of 95% LTV: 2- and 5-year fixes

Written by Joanne Leek

23 Feb 2022

Tags

First Time Buyers, Gifted Deposit, Product Changes, Residential mortgages

4 min read

For your first time buyer clients or remortgages with a modest deposit we’ve introduced two new fixed rate products up to 95% LTV. These are available for loans up to £500k:

  • 2-year fixed at 3.25%
  • 5-year fixed at 3.49%

Don’t forget with the 5-year fixed option we’ll assess affordability on the product pay rate only, and no stressed rate will be applied.

More good news – self employed and new build house applications are accepted, and gifted deposits are accepted where applicants can demonstrate they have at least a 12-month rental history.

Charlotte Grimshaw, Head of Intermediary Relations, commented:

“By offering fixed rates, we’re able to provide certainty over monthly payments, which should bring peace of mind to prospective home buyers, especially amid news of rising inflation, interest rates, and energy prices.

“We’re also really pleased to be able to welcome gifted deposits from renters who have family support as a route to home ownership. We recognise that the way people get on the property market has changed; gathering a lump sum for a deposit can be difficult, especially for those currently renting, and so increasing numbers of parents and grandparents are helping out family members in this way.

“The combination of 95% LTV, the security of a fixed rate, the maximum loan size, and the gifted deposit option will be a really compelling deal for intermediaries and their clients, especially as the 5-year fixed option means we can assess affordability on product pay rate only and not apply a stressed rate scenario.”

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