Other lenders also implement rate cuts
Specialist lender Together has reduced rates on its unregulated bridging loans for landlords and investors purchasing or renovating residential properties.
The lender announced a reduction of two basis points (bps) per month across its unregulated residential bridging first and second charge products, aiming to improve affordability for brokers’ clients. The rate cuts apply to loans over £100,000.
For first charge loans up to 65% loan-to-value (LTV), variable rates have dropped from 0.95% to 0.93%. Second charge rates at the same LTV have decreased from 1.05% to 1.03%.
For loans up to 75% LTV, first charge rates have been reduced from 1.05% to 1.03%, while second charge rates have fallen from 1.15% to 1.13%.
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“The changes will help brokers’ customers – mainly residential property landlords and investors – benefit from lower rates, which will help when it comes to affordability,” said Tanya Elmaz (pictured centre), director of intermediaries at Together.
Mutuals implement rate reductions
Meanwhile, three building societies have also announced reductions in mortgage rates across a variety of products.
Nottingham Building Society has reduced rates on its mortgage range for skilled foreign nationals and returning UK expats by up to 11bps.
This move follows the society’s partnership with Nova Credit, enabling mortgage brokers to access international credit histories, addressing a common barrier for foreign nationals with limited UK credit history. The society has also reduced its maximum product fee from £1,999 to £1,499 without increasing rates.
“By offering a solution that requires no minimum time of residency in the UK, no UK credit history or no minimum income, we hope to help as many people as possible onto the UK property ladder,” said Alison Pallett (pictured left), sales director at Nottingham Building Society. “That’s the role we believe a modern mutual should fulfil.”
Vernon Building Society has also introduced cuts across its mortgage products, reducing rates by up to 30bps.
Among its most competitive offerings is a three-year fixed mortgage at 4.49%, available at 80% LTV with a £499 arrangement fee.
Vernon has also launched a five-year fixed product at 4.29%, with similar LTV requirements and a £999 fee. The mutual has further reduced rates on its higher LTV mortgages, benefiting first-time buyers with smaller deposits.
“As a mutual, the Vernon is not compromised by pressure to make as much profit as possible, so we’re eager to pass interest rate cuts directly onto our brokers and customers,” said Brendan Crowshaw (pictured right), head of mortgage and savings distribution at Vernon Building Society.
Principality Intermediaries has also made rate cuts across its residential and buy-to-let mortgage products.
The lender has reduced rates on its two-, three-, and five-year fixed residential mortgages by up to 10bps, including options at 65%, 75%, and 85% LTV. Buy-to-let and holiday let products have also seen reductions of 5bps.
In addition, it has reintroduced a five-year fixed new build mortgage at 95% LTV, targeting first-time buyers.
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