Page 13 - Musker McIntyre

Good news for

big borrowers

Banks are back in the large loan market.
G

3.2
The focus on the mortgage market since
the credit crunch has been on irst-time N
buyers, with numerous Government
schemes to kick-start the bottom rung of

the property ladder. But for those at the I
Times salary is the average ratio top it is the market itself that has improved
borrowed by irst-time buyers.
conditions for big borrowers.
H
The pricing and availability of loans of
more than £1 million has been improving
steadily since the end of last year,
C
12
according to Henry Knight, managing
director of Springtide Capital.
“Following the inancial crisis, we N
witnessed the percentage of high street
lenders withdraw from the large loan

market, leaving the opportunities with U
the private banks,” he says. “Now that
Months until the Bank of England is the likes of NatWest, Santander, Virgin,
most likely to raise interest rates.
Halifax and Woolwich have all come back
to the market with new propositions, we R

£140
can expect to see more competition and
innovation among all banks.”
C
Santander started the ball rolling
four months ago when its director of such onerous restrictions and borrowers
mortgages, Phil Cliff, said: “We are simply apply like any other applicant.
extending the maximum loan size on This, says Mr Knight, will mean that R

selected mortgages to £1.5m and private banks will need to do more to
Difference in monthly repayments on launching a very competitive range of new attract back the biggest borrowers and E
a £500,000 Halifax mortgage should products for customers looking for a large that will be good news. “We therefore
rates rise by 0.5 per cent.
loan up to £2.5m.”
expect that as a result of this we will see
So,aborrowerwantingaloanof£1.5m increased pressure on private banks, B

3%
to buy a £2.5m home would need a resulting in rates falling in the months
deposit of £1m (30 per cent) and would ahead for both those purchasing and
pay a rate of 2.14 per cent, which is reinancing,” he says.
M
competitive by any measure. Repayments The beneit of all this for the wider
would be about £10,000 a month.
housing market is that while top end

Previously, as Mr Knight says, borrowers has been dominated by overseas cash U
Level at which the Bank of England would have needed to turn to private buyers and the bottom end propped up
base rate will peak, according to banks for such large loans. Those banks by Government help, there is now more
would insist that clients moved most of equality across the board. This could well N
analysts, rather than 5 per cent in their other assets – shares, investments help London, particularly, maintain the
pre-credit crunch days.
and deposit accounts – to their bank. With momentum of a property market said to

high street lenders, however, there are no
be worth £100 billion.

Fixed Rates - 5 Years / Variable, Including Tracker And Discount

Lender
Rate
Until
Rev. APR
Max. HLC
ERC
Product Exit Notes
Rate
LTV
Fee
Fee
NatWest
2.95%
31/7/19
4.00%
3.8% APR
60%
None
5/4/3/2/1% to 31/7/19. Can repay up to 10% p.a. ERC free.
£995
Nil
On remortgages free legal fees
Post Ofice
2.98%
31/3/19
4.49%
4.3% APR
75%
None
5% to 31/3/19. Can repay up to 10% p.a. ERC free.
£1,475
£195
Hinckley & Rugby
3.55%
5 years
5.64%
5.4% APR
80%
None
Nil
£990
£150
Free valuation. On remortgages free legal fees.

Leeds
3.79%
30/4/19
5.69%
4.3% APR
85%
None
5/5/4/3/12% to 30/4/19. Can repay up to 10% p.a. ERC free
£999
£199
Yorkshire B S
4.34%
30/4/19
4.99%
4.9% APR
90%
None
4/4/3/2/1% to 30/4/19. Can repay up to 10% p.a. ERC free
£975
£90
Flexible.
Santander
5.49%
2/5/19
4.74%
4.9% APR
95%
None
5% to 2/5/19 + £250 to 2/3/16. Can repay up to 10% p.a. ERC free
Nil
£225
Purchase only. Free valuation and £250 cashback

Coventry
2.00%
Term
N/A
2.1% APR
65%
None
Nil
£999
£125
Free valuation. On remortgages free legal fees. Flexible.

Hanley
1.99% 2 years
5.19%
5.1% APR
80%
None
2% in 2 years.
£250
£56
Free valuation up to £250K.
(3.2% disc)
Can repay up to 25% p.a. ERC free
£250 cashback.
Coventry
2.75%
Term
N/A
2.8% APR
85%
None
Nil
£999
£125
Free valuation. On remortgages free legal fees.
Flexible.
Furness
3.25% 3 years
5.44%
5.2% APR
90%
None
3% in 2 years.
£999
£90
On remortgages free valuation and free legal fees.
(2.19% disc)
Can repay up to 10% p.a. ERC free
Hanley
4.19% 2 years
5.19%
5.2% APR
95%
None
2% in 2 years.
£250
£56
Purchase only. Free valuation up to £250K.
(1.0% disc)
Can repay up to 25% p.a. ERC free
£250 cashback.

www.muskermcintyre.co.uk