Both swap rates and LIBOR were quite volatile, ending slightly up last week.
One-year money is up 0.05% to 5.19%
Two-year money is up 0.05% to 5.20%
Three-year money is up 0.05% at 5.25%
Five-year money is up 0.05% to 5.32%
Alliance & Leicester has launched a two-year fix at 4.95% and a two-year discount at 2.4% off SVR with a pay rate of 4.44%. Accord launched a discount that looks pretty average and withdrew its popular US LIBOR tracker which had been attracting a significant proportion of its new applications. It only gave two days to get applications keyed. Not enough notice.
The outstanding 3.99% BM Solutions' tracker at base less 0.76% is now available through Legal & General's mortgage club. Whilst the fee is sizeable for most large mortgages the pay rate more than compensates. This is rate of the week again.
Leeds & Holbeck launched a three-year fix at 5.29% and Coventry launched an excellent rate which is capped at 4.99% for two years with a lifetime tracker at base plus 0.69%.
Mortgage Express has simplified its redemption penalties policy. Redemption penalty is now 3%. Well done to MEX for emailing a regulation update telling us what is going on, I wish more lenders would.
Speaking of regulation, BMS is the first lender to tell us when we will be able to access its Key Facts Illustrations.
And Bank of Scotland has changed its policy so now clients cannot add their MIG or arrangement fee to 100% mortgages.
Villain of the week is GMAC-RFC for introducing a supplementary application form – I hate paper for paper's sake. Obviously this is necessary to help produce KFIs but why not build it into the standard application form which most people download from the website? That way brokers cannot forget to take it to client interviews.
As widely expected, the MPC held the base rate at 4.75% last week – and householders breathed a sigh of relief.
Jonathan Cornell is technical director at Hamptons International Mortgages