High LTVs on offer to existing clients

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AARON STRUTT, HEAD OF COMMUNICATIONS, TRINITY FINANCIAL GROUP

I was looking through some best buy tables last week and noticed Halifax’s 120% LTV two-year fixed rate at 5.14%.

This should not be in a best buy table as it is for product transfers only, but I thought I would check which other lenders are offering high LTVs.

It will be some time before such mortgages are for house purchases but more lenders now offer high LTVs for existing clients.

Halifax, Accord Mortgages and Yorkshire and Coventry building societies all offer 100%-plus LTVs to existing customers. Rates are reasonably competitive but some have a big fee.

Birmingham Midshires has a three-year fix at 5.59% up to 95% LTV with a 1% arrangement fee. Cheltenham & Gloucester will also stretch to 95% LTV and lend up to £7.5m. Chelsea has a 100%-plus LTV two-year fix at 5.69% with no fee. It is also 0.10% lower than its SVR at 5.79%.

Godiva Mortgages offers existing buy-to-let customers 100% LTV two-year fixes at 5.50% with no arrangement fees. This is better than a lot of residential rates.

Lenders seem happier helping existing clients and generally offer fixes rather than trackers. Nationwide doesn’t offer clients with less than 5% equity the chance to switch. But its base mortgage rate is so good borrowers won’t worry until the base rate rises.

If I was in negative equity I would be pleased my lender was offering me the chance to come off its SVR although I think I’d wait a while before I switched.