I thought it would be interesting to look at some good products that are available through mortgage clubs rather than directly. While mortgage clubs are quite good at emailing updates and monthly summaries, it is difficult to keep track of what’s around. Looking on sourcing systems tends to bring up bewildering lists of products and unless intermediaries want to look at each one in turn, they can’t tell which ones are network exclusives or exclusives to directly authorised firms which they can’t get access to. Also, some of the differences in pay rate or fee are very small and that makes it difficult to spot the great rates among the middle-of-the-road ones.
I think the best value product we have seen so far this year was from The Mortgage Business, which was available through Pink. Admittedly it was for loans of more than £500,000 but a 4.49% two-year tracker (so Bank base rate less 0.76% with ” While mortgage clubs are quite good at emailing updates and monthly summaries, it is difficult to keep track of what’s around”a £1,699 fee available to 75% loan to value) is incredible value. For anyone borrowing a large sum of money this was astoundingly good value and also came with a net procuration fee of 0.50%, so not only would brokers be getting their clients the best residential rate in the market, they were being paid a buy-to-let proc for for it. Sadly this went a month or so ago but I eagerly await its replacement.
Intelligent Finance has some pretty good offset products which are available through a couple of clubs. Through Mortgage Intelligence, intermediaries could have a two-year tracker at BBR less 0.10% with a £999 fee. Through Pink they could have either BBR less 0.01% for two years with a £799 fee, or BBR plus 0.19% with no fee. All of these are available up to 90% LTV and with a full remortgage package.
Through Legal & General there is BBR less 0.26% with a £1,495 fee available to 85% LTV, again with a full remortgage package. The last rate is 0.1% better than the direct product and although it might appear that the rate is lower but the fee higher, the fee is actually £4 lower.
If intermediaries are looking at Woolwich then, unlike most of the other lenders, the only mortgage club to look at for products is Legal & General. At the moment it has a few excellent tracker rates – including 5.14% (BBR less 0.11%) for two years up to 80% with a £595 application fee up to 80% LTV and a switch-and-save remortgage package. There is also one for a slightly higher LTV of 85% two-year tracker at 5.34% (BBR plus 0.09%) for two years with a £495 application fee which also has the switch-and-save package. I am not sure how much longer these will be around as I have heard they might be withdrawn shortly.
The best buy-to-let club product in my view is one from BM Solutions. It is a flexible two-year buy-to-let rate via Premier Mortgage Service, L&G, Mortgage Intelligence, Personal Touch Financial Services and Pink which is 4.75% (BBR less 0.50%) for two years with a £1,499 arrangement fee, a refund of valuation (up to the usual £490) and a rental calculation based on 125% of base + 0.5%. To be honest this looks like a fantastic residential product let alone a buy-to-let one.