A flying start to the week for good new mortgage deals, thanks to Market Harborough Building Society, which revealed today it is launching a new 80 per cent loan-to-value (LTV) mortgage. The deal is a fixed-rate mortgage offering 3.7 per cent up to to 31 December 2014.

The mortgage also benefits from there being no set-up fee and other nice features, such as a refundable valuation fee to a maximum value of £550, plus free legal fees. If a homeowner is thinking of taking advantage of the loan for remortgaging, then there is also refundable accident, sickness and unemployment insurance for a three-month period.

The deal received warm words from Moneyfacts, with publishing director Sylvia Waycot saying: “At 3.70 per cent this mortgage offer is well below the current market average of 4.60 per cent for an equivalent term. When you add the incentives package, it’s a really competitive deal for anyone with a 20 per cent deposit.”

Also this week, Newlife have launched a first-charge mortgage of between £10,000 and £40,000 for applicants over the age of 21, called the Simple Life Mortgage. The loan can be used for nearly all purposes and homeowners will be able to request further advances on it for a minimum sum of £3,000.

There are three different forms of the mortgage, with the cheapest coming in with a three-year fixed rate of 9.52 per cent and the most expensive offering a three-year fixed rate of 12.19 per cent.

Newlife chief executive Peter Lucas said that he expected the average mortgage size to be between £20,000 and £25,000 and the average borrower to be over 40 years old and seeking to release a cash lump sum for a one-off purchase, such as a family member’s wedding, school or university fees or home improvements. “As we deal exclusively through intermediaries this new product has been developed specifically in response to feedback from advisers,” he added.

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