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L&G offers Newcastle 95% LTV 2-year fixed

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Legal & General Mortgage Club is offering an exclusive Newcastle Building Society 2-Year 5.95 per cent fixed rate mortgage to 95 per cent of valuation.

The rate is fixed until March 31, 2014 and the deal is available for loans up to £250,000. A completion fee of £800 is charged plus a £195 reservation fee, bringing total fees up to £995.

Capital repayments of up to £500 a month are allowed without penalty in the fixed-rate period but any overpayments above this will incur an early redemption charge. This is charged at 3 per cent of the amount repaid during the fixed-rate period.

This mortgage lacks the incentives that are available on Legal & General Mortgage Club’s similar Newcastle Building Society two-year fix at 6.25 per cent to 95 per cent of valuation For the higher rate, borrowers pay no arrangement or reservation fee; receive a free valuation if their property is valued up to £500,000 and either a £300 cashback or free legal fees.

Defaqto insight analyst for banking David Black says: “There’s been a gradual increase in the number of mortgages available in the 95 per cent LTV range but there is a significant interest rate premium for high LTV mortgages - typically 1.25 to 2 per cent.

“Prior to the credit crunch there was comparatively little difference in the interest rate charged whether you wanted a 60 or 90 per cent LTV mortgage.

“If you disregard mortgages restricted to product transfers, family guarantees, shared ownership and the like, Legal & General’s 5.95 per cent is fairly competitive at 95 per cent LTV. Shepshed’s five-year year fixed at 5.49 per cent with a £499 application fee but £999 through intermediaries looks to be the pick of the current crop of 95 per cent LTV mortgages.”

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Readers' comments (1)

  • I feel like everyone else is from Planet Jupiter. With the right knowledge people will understand we don't need mortgages. Brick houses are designed to maximise profits (create jobs etc). If you don't want to be a slave in a mortgage for 35+ years of your life paying off a house you probably won't even like then please consider a different way of building. I am a building surveyor and I will happily help you build a house for free

    You could build a SuperAdobe Dome house from £500+ for materials, simple to build it yourself. This is the cheapest type of house and it performs better than a brick house (withstands winds in excess of 300mph, less energy to heat etc due to its natural shape), design these houses however you want them to look, use your imagination, any shapes can be achieved.

    Or consider Strawbale houses (from £5000+ for materials, build it yourself like lego, takes 2 hours longer to burn down than a brick house due to its density, much less energy to heat than a standard house) / Earth Shelters (from £3000+, build it yourself) / Recycled Shipping Containers (from £5000+, build it yourself)...

    Don't forget kiddies, if you don't build your house from bricks the Big Bad Wolf will blow it down!

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