View more on these topics

Lenders hike NewBuy rates less than two months after launch

Lenders have increased the rates on products they developed for the government’s indemnity guarantee scheme less than two months after its launch.

Under the NewBuy scheme, which launched in March, lenders offer 95% loan-to-value mortgages on new-build properties against a mortgage indemnity guarantee funded jointly by builders and the government up to 9% of the property value.

At the scheme’s launch, NatWest, Barclays and Nationwide Building Society launched specific products for the scheme. But since then, all three have made changes to these products.

NatWest has increased the rate on its products by 0.5%, meaning it now offers a two-year fixed at 4.79% and five-year fixed at 5.49%.

Nationwide has increased its three and five-year fixes by 0.2% and 0.1% respectively, meaning it now offers a 5.89% three-year fixed and 6.09% five-year fixed.

Barclays has replaced its 4.99% two-year fixed rate and 5.89% four-year fixed with a 6.09% three-year fixed.

NatWest only distributes its NewBuy mortgages direct, Barclays will distribute both through intermediaries and direct while Nationwide only distributes through intermediaries.

Last month, Halifax launched a two-year fix at 5.99% and another at 6.39% which is fee-free.

Dominik Lipnicki , director at Your Mortgage Decisions, says: “It is taking advantage of people who have small deposits. It means fewer people will be able to afford to take out the mortgage, when the point of the scheme was to ensure more could.”


Vote to increase QE justified, says MPC’s David Miles

Bank of England Monetary Policy Committee member David Miles says his decision to vote for more quantitative easing earlier this month looks justified due to weakness in the economy. Miles was the only member of the MPC to call for an expansion of monetary policy earlier this month. Fellow MPC member Adam Posen voted to […]

FSA to warn potential fraud targets

The Financial Services Authority is contacting 76,732 people to let them know they are targets for fraudsters trying to con money out of them. Their names appeared on lists recovered from companies that the FSA believes were fraudulently selling investments in land or worthless, sometimes non-existent, shares. Combined into one list, this is the largest […]

InFocus - thumbnail

In Focus — February 2015

Jelf Employee Benefits looks at the issue of paying anaesthetist fees when the patient had no chance to discuss or agree to them prior to care; and provides recommendations for avoiding this scenario.


News and expert analysis straight to your inbox

Sign up