Black says: “The latest inflation figures show annual inflation running at 4.4 per cent for Consumer Price Index and 5.5 per cent for Retail Price Index. These disclosures will stoke continued media attention on the likelihood of future increases in the bank base rate. Against this backdrop it really is no surprise that there is a continuing surge of interest in opting for a fixed rate mortgage. However, for borrowers enjoying a competitive standard variable rate, it remains something of a guessing game as to whether and when the optimum time may be to remortgage.
“The average fixed rate mortgage now offers a maximum LTV of 78.1 per cent. This is slowly creeping up from its nadir of 74.6 per cent back in March 2009, but is still well below the 90 to 91 per cent average that prevailed in 2007. It is always good to see the launch of higher LTV products, but the fact remains that they charge a significant premium rate above that available from lower LTV equivalents.
“The Leeds Building Society five-year fixed mortgage is up against an average rate in the market of 5.96 per cent with an £850 fee for five-year fixed rates offering a maximum LTV of 85 per cent. It is also worth noting that Leeds offers direct applicants a rate of 5.73 per cent or 5.49 per cent if they take out buildings and contents insurance through the Society. These rates are fixed until April 30,2016 with the same fee as its intermediary product.
“The most competitive products for 5 year fixed rate mortgages at 85 per cent LTV are currently Nottingham Building Society, offering a 5.19% rate to direct applicants with a £995 fee, free valuation, and free legal fees for remortgages. Cambridge Building Society has a 5.39 per cent direct rate with a £999 fee, free valuation and free legal fees for remortgages. Accord Mortgages has a 5.74 per cent fixed rate with a £1,995 fee available through intermediaries.”