It also slashes some fixed rates
Suffolk Building Society has introduced a new standard residential mortgage product featuring no early repayment charge (ERC) for a limited time.
The new ERC-free capital and interest repayment residential mortgage is available for both purchase and remortgage purposes under a two-year discount arrangement at 5.69% (SVR minus 3%). It comes with a maximum loan-to-value (LTV) of 80%, a minimum loan amount of £75,000, a maximum loan limit of £1 million, an application fee of £199, and a completion fee of £999.
Following the initial 24 months, the product transitions to the Suffolk’s standard variable rate minus 1.74% (with a 3% floor) for the subsequent 36 months.
The lender said the new product targets borrowers who may be hesitant to commit to a mortgage presently, foreseeing a potential reduction in the Bank of England Base Rate and anticipating improved mortgage alternatives later in the year. It added that it also caters to individuals planning to relocate soon and aiming to avoid ERC fees upon early exit from their mortgage deal.
In addition, Suffolk Building Society has reduced its two- and five-year fixed rate holiday let mortgage offerings by 20 basis points (bps), bringing down the rates to 6.09% and 5.79%, respectively.
Earlier this week, the mutual announced a reduction in rates for its 95% residential products and five-year expat buy-to-let mortgage.
The new and repriced products, along with their details, can be found through the lender’s Mortgage Product Finder tool.
“Many homeowners will be taking stock of the UK’s housing market at present – trying to determine what might happen to both house prices and interest rates,” Andrew Sadler, key account manager at Suffolk Building Society, commented. “We’re pleased to be offering this new product which allows borrowers additional flexibility.
“Although interest rates have come down from their peak, we appreciate that it is still an uncertain time for brokers and their clients. We hope our new residential mortgage with no ERC will be welcomed by those who, understandably, are not ready to lock into a fixed rate right now.”
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