N&P increases LTV and reduces fixed rate

N&P (Norwich and Peterborough Building Society) has increased the loan to value (LTV) it will lend, and decreased its five year fixed rate mortgage rate.

The Society has increased its LTV on a selection of fixed rate mortgage products from 80% to 85%, and on a selection of its discounted variable rates from 75% to 80%.  In addition, its five year 6.59% fixed rate mortgage has also reduced to 5.89%, and its five year 6.69% fixed rate mortgage (with free valuation, £200 cashback for purchases, free legal fees for remortgages) has reduced to 5.99%.  Full details are:

Fixed rate products with a new LTV of 85%

4.99% 3 year fixed rate
5.29% 3 year fixed rate (with free valuation, £200 cashback for purchases, free legal fees for remortgages)
5.89% 5 year fixed rate
5.99% 5 year fixed rate (with free valuation, £200 cashback for purchases, free legal fees for remortgages)
Additional borrowing 6.99% 5 year fixed rate

Variable rate products with a new LTV of 80%

3.15% 3 year discounted rate
3.35% 3 year discounted rate (with free valuation, £200 cashback for purchases, free legal fees for remortgages)
Offset 3.50% 3 year discounted rate
Offset 3.65% 3 year discounted rate (with free valuation, free legal fees for remortgages) 

Richard Barker, N&P's product manager for mortgages, said:  "We have witnessed a general trend of rising LTVs across the market over the last few months.  The new higher LTVs will provide a welcome boost for many customers who have struggled to raise a sufficient deposit to purchase or re-mortgage in the current environment."