Product launches of the week
The mortgage market continued to see a wave of new launches as lenders fought to remain competitive.
BM Solutions has reduced rates by up to 0.30% across its buy-to-let mortgage product transfers. The three new rates include a two-year fixed rate mortgage to 60% LTV from 3.09%, a two-year fixed rate mortgage product transfer from 60 to 75% LTV with initial rates from 3.79% and a four-year rate up to 60% LTV from 4.09%.
Santander has launched two fixed rates, available from mortgage brokers. Available for home-movers, first-time buyers and remortgage customers, and with a £995 booking fee, they are: a two-year fixed at 1.94%, up to 75% loan-to-value (LTV) or at 2.79%, up to 85% LTV. The group is also cutting the rate on its five-year fixed mortgage (75% LTV) to 2.89%, a reduction of 50bps.
Coventry Building Society has launched a new residential range including fixed rates and Flexx forTerm options. Highlights include; 1.79% Flexx for Term, variable rate, 65% LTV, £199 booking fee, £300 arrangement fee and no early repayment charges (ERCs); 1.89% Fixed Rate until 31.12.16, 65% LTV, £199 booking fee, £300 arrangement fee, ERCs payable to 31.12.16. 3.29% Fixed Rate until 31.12.19, 80% LTV, £199 booking fee, no arrangement fee, ERCs payable to 31.12.19.
Nationwide has launched a 10-year fixed rate mortgage at 3.49% available up to 70% loan-to-value (LTV) for a fee of £999. Existing customers can shave 0.10% off the rate and secure the deal for 3.39% by using the building society’s loyalty discount. First-time buyers will pay £499 for the deal instead of £999 and a fee-free option with higher rates is available for all borrowers.
Hermes Investment Management is launching the Hermes Multi-Asset Inflation fund, which will invest in a range of inflation-related assets in an effort to achieve a return of RPI+3%, with a low tracking error to inflation and similar volatility to inflation-linked gilts.
Polar Capital has launched a European Income fund for ex-Threadneedle manager Nick Davis, who joined the group last month. The fund will target an overall yield of 10% above the MSCI Europe Daily Total Return Net Euro benchmark index. The fund will invest in around 30-50 mid- to large-cap Pan-European stocks, typically with a market cap of between €1bn and €3bn.