Owner-occupiers, holiday lets and two year fixed deals all get sweeteners
Four building societies have announced updates aimed at offering more competitive mortgage solutions and improving broker services.
Hanley Economic Building Society has launched a new fee-free, two-year fixed rate mortgage option for homeowners looking to move or remortgage.
The product, with a headline rate of 4.99%, is available for up to 80% loan-to-value (LTV) and includes a free valuation, no application or arrangement fees, and £250 cashback upon completion. The offering, available in England, Wales, and Scotland, has a minimum loan size of £30,000 and maximum limits ranging from £500,000 to £1.25 million depending on the LTV.
Underwriting will be done on an individual basis without the use of credit scoring, and the product is available through the building society’s branches and selected intermediary partners.
“This product offers a highly competitive option for homeowners at a time when we are experiencing increasing activity levels, with the potential for even more positive movement across the wider housing market as we enter Q4,” said David Lownds (pictured far left), head of products and marketing at Hanley Economic Building Society.
Meanwhile, Mansfield Building Society has lowered product rates, specifically on its special purpose vehicle (SPV) limited company holiday let mortgage. The initial rate for the two-year discount product has been reduced from 6.20% to 5.99% variable.
The product offers a maximum LTV of 75%, with loan amounts ranging from £100,000 to £1 million per property. Early repayment charges apply at 2% in the first year and 1% in the second year.
“This rate reduction aligns with our commitment to providing competitive and flexible mortgage solutions for underserved borrowers,” said Tom Denman-Molloy (pictured second from left), intermediary sales manager at Mansfield Building Society.
Coventry for intermediaries has also reduced rates across its owner-occupier mortgage products, with cuts of up to 27 basis points (bps) on its standard range and up to 53bps on its offset, interest only, and offset interest only products.
Notable offerings include a five-year purchase mortgage at 3.69% for 65% loan-to-value (LTV) with a £999 fee, and a two-year offset remortgage at 4.88% for 75% LTV, also with a £999 fee.
“These reductions across our owner-occupier range come hot on the heels of last week’s reductions to our buy-to-let products,” said Jonathan Stinton (pictured second from right), head of intermediary relationships at Coventry Building Society. “The BTL changes, and the greater choice they provide borrowers, have been very popular, and we expect brokers and their clients will also like the competitive rates that we’ve announced today.”
Coventry has also recently introduced new features to its online system, aimed at simplifying the application process for mortgage brokers.
The updated system allows brokers to submit buy-to-let, residential new build, and interest-only applications through the Mortgage Sales and Originations (MSO) platform. Cases submitted via MSO are typically processed one day faster than those submitted through non-MSO methods.
In a move to also improve broker services, Hinckley & Rugby for Intermediaries has launched a new online broker portal.
Developed in partnership with Sopra Banking Solutions, the portal introduces features such as instant decisions in principle (DIP), the ability to amend submitted DIPs, a full mortgage application facility, and a secure messaging system for direct communication with the lender.
“It’s vital for lenders to put in place technology which makes the application process easier and faster, and that’s precisely what this portal does,” said Laura Sneddon (pictured far right), head of sales and distribution at Hinckley & Rugby Building Society. “We have utilised broker feedback in its design, to ensure it really works for them and ensures that it is as easy as possible to place cases with Hinckley & Rugby.”
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