It also reprices select residential deals
Suffolk Building Society has re-entered the 95% loan-to-value (LTV) market, offering residential fixed and discount products.
The mutual has introduced three new options for borrowers, including first-time buyers: a five-year fixed, a two-year fixed, and a two-year discount product.
It has also reduced rates on its residential products at 90% and 80% LTV, with cuts of up to 29 basis points (bps) on interest-only deals. These products will be available from tomorrow, June 11.
The updated residential products include a 95% LTV two-year fix at 5.89%, a 95% LTV five-year fix at 5.49% for 60 months, and a 95% LTV two-year discount at 5.85% for 24 months.
Also, the building society’s 90% LTV two-year fix has been reduced by 4bps to 5.55%. The 80% LTV two-year discount has been reduced by 14bps to 5.25% for 24 months. The 80% LTV two-year fixed has been cut by 10bps to 5.29%, and the 80% LTV two-year fixed large loan has also been reduced by 10bps to 5.29%.
The updated interest-only products include an 80% LTV two-year discount interest-only reduced by 29bps to 5.50% for 24 months, an 80% LTV two-year fixed interest-only reduced by 25bps to 5.44%, and an 80% LTV five-year fixed interest-only reduced by 10bps to 5.29% for 60 months.
“We’re still in a highly dynamic mortgage market,” said Charlotte Grimshaw (pictured), head of intermediary relations and mortgage sales at Suffolk Building Society. “By dropping rates on residential options, and bringing back 95% LTV products for lower-deposit borrowers, we’re helping to put homeownership within the grasp of first-time buyers and keep the cost of monthly mortgage payments down.
“The society is also pleased to be able to reduce the rates on three interest-only products. We know these will help brokers with their later life customers, where we’ve carved out a strong niche, in part due to no maximum age limits and our acceptance of pension assets. Borrowers with larger loans may face affordability challenges, and interest-only deals might appeal to them.
“While we’re known for our niches – later life, holiday let, self-build, and expat – we write a lot of standard residential business. Our team of manual underwriters assesses each case individually, so one late mobile phone direct debit won’t necessarily trigger the computer to say no!”
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