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Cashback volumes at high LTVs falling: Moneyfacts

The average first-time buyer cashback amount for LTVs of 90 and 95 per cent has fallen £59 in two years, according to Moneyfacts research.

Moneyfacts found that the level of cashback had fallen despite the number of cashback deals at these LTVs soaring over the period.

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Moneyfacts finance expert Charlotte Nelson says: “At a time when providers are fighting for borrowers’ attention, the slump in cashback for those seeking higher LTVs is disappointing.

“Not only has the amount offered to borrowers been affected, but the number of cashback deals overall has also seen a decline, from 1,022 deals two years ago to 918 today, although the number at 90 per cent and 95 per cent LTV has in fact increased over that time.

 “With average mortgage rates still falling to new lows each month, the decline of cashback on offer could be a sign that providers are stripping back their offerings to compensate for the low deals.

“Borrowers are also growing wise to the fact that these offers can be wolves in sheep’s clothing; they tempt the customer in but then provide a higher overall rate, making their monthly repayments far more expensive than if they had opted for a standard deal.”



CML downgrades 2017 lending forecasts

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Leeds launches 1.99 per cent 5-year fix with £1,000 cashback

Leeds Building Society has launched a 1.99 per cent five-year fixed rate mortgage with £1,000 cashback. The loan is available up to 75 per cent LTV. The product has a free valuation and a £1,499 completion fee. The loan has tapered early redemption charges, starting at 5 per cent for the first two years, then […]


Employer iPMI responsibilities could continue to escalate, says Jelf

New laws in Dubai will put the burden of providing international private medical insurance (iPMI) firmly on the shoulders of the employer in order to maintain the country’s leading healthcare facilities. With 10,000 UK nationals having moved to the country since 2007 and only 16.5 per cent of the total 8.2 million people living there being Emiratis, Jelf Employee Benefits believes this move was inevitable and employer responsibilities could continue to escalate in future.


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