Rate reductions span residential, buy-to-let, and specialist lending as funding costs ease
Aiming to pass on lower funding costs to borrowers following last week’s Bank of England base rate cut, more UK lenders have announced rate reductions across their residential, buy-to-let, and specialist lending products.
High street lender Virgin Money has reduced rates on selected fixed rate mortgages for residential purchases, BTL, and product transfers. The lender’s 90% and 95% loan-to-value (LTV) fixed rates are now lower by up to seven basis points (bps), starting from 5.32%. BTL rates have been cut by up to 10bps, with selected two- and five-year fixed rates now starting from 4.39%. Product transfer rates have also been reduced, with five-year fixed rates at 65% LTV now available from 4.19%.
Specialist lender Pepper Money has lowered the price of every mortgage product in its range by 20bps. The lender’s limited edition remortgage products, which feature no upfront fees and free valuations, now start from 5.69% up to 75% LTV.
“Following the recent Bank of England base rate decision, we’ve moved quickly to pass on the subsequent reduction in swap rates, cutting the price of every mortgage in our range by 20bps,” said Paul Adams, sales director at Pepper Money.
In a similar move, Melton Building Society has cut rates on its entire Credit Repair range by up to 36bps. These products, designed for borrowers with adverse credit histories, offer fixed rates for two years at up to 70% LTV, with a £199 application fee. The lender has also adjusted its BTL products, reducing rates on its Holiday BTL and Family BTL mortgages.
ModaMortgages has also reduced BTL rates by up to 10bps, with two-year fixed rates now starting from 3.49% and five-year fixed rates from 4.94%. The lender, which caters to various landlord profiles, offers LTVs up to 75% and multiple fee options.
Meanwhile, West One Loans has made substantial cuts, reducing rates by up to 65bps on its residential mortgages and up to 64 basis points on second charge products. Its five-year fixed residential rates now start from 5.89%, while two-year fixed rates begin at 5.99%.
The lender has also introduced new product enhancements, including valuation refunds for high-LTV purchases and digital application submissions for second charge mortgages.
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