Find out which lenders are making changes to their product offerings
Several UK mortgage lenders have announced new products, interest rate cuts, and criteria changes in a bid to attract a wider pool of borrowers and respond to shifting market dynamics.
Vernon Building Society has launched a three-year variable rate mortgage aimed at borrowers seeking large loans. The product, available for loans between £500,000 and £1.8 million, carries a product fee of £999 and an initial rate of 4.99%, reflecting a 2.86% discount from the lender’s standard variable rate. Borrowers can repay up to 25% of the capital annually without penalty. The product is offered on both capital and interest or interest-only bases.
“We’ve designed this new product for borrowers seeking larger borrowing options who value flexibility and competitive pricing, particularly in the current market,” said Brendan Crowshaw (pictured far left), head of mortgage and savings distribution at Vernon Building Society.
Fintech lender MPowered Mortgages has reduced its fixed mortgage rates following a drop in swap rates triggered by US president Donald Trump’s tariff announcement. The lender’s fixed rates for purchases now start at 4.05% for a two-year fix at 60% LTV with a £999 fee. Three-year fixed rates begin at 4.04%, and five-year fixes start at 4.14% under similar conditions.
“While these tariffs could have a detrimental impact on the UK economy with increased prices putting extra strain on UK households, there is a silver lining for mortgage borrowers who will see rates come down over the coming week,” said Stuart Cheetham (pictured second from left), chief executive of MPowered Mortgages.
Similarly, Molo Finance has lowered rates on its buy-to-let mortgage products for UK residents, with its two-year fixed rate reduced to 3.03% and five-year fix cut to 4.59%. These rates apply to both individuals and limited companies. However, five-year fixed rates for new build and holiday let properties have increased to 5.08%, while house in multiple occupation and multi-unit freehold block product rates remain unchanged.
“We understand that brokers need competitive financing to support their clients in today’s dynamic market,” said Martin Sims (pictured centre), distribution director at Molo Finance. “These latest reductions sharpen our pricing, providing landlords with the tools they need to secure better affordability.”
Meanwhile, Bath Building Society has refreshed its ‘Rent a Room’ mortgage criteria, offering up to 100% of the property purchase price when customers rent out a spare room. The rental income can be included in affordability calculations, with potential tax-free earnings of up to £7,500 annually.
The lender offers three products at 100% LTV: a two-year variable at 5.24%, a five-year fixed at 5.59%, and a two-year fixed at 5.64%. Additional fixed and variable rate options are available at 85% LTV.
“Our aim is to help first-time buyers to get onto the property ladder and our Rent a Room mortgage does just that,” said Ben Hutchings (pictured second from right), national account manager at Bath Building Society.
Another lender, Standard Life Home Finance, has raised the maximum LTVs across its Horizon lifetime mortgage range from 49% to 51%, broadening its appeal to later life borrowers. The Horizon range, offering loans from £15,000 to £1.5 million, features low early repayment charges and downsizing protection from the start.
We're pleased to introduce higher LTVs on our Horizon and Horizon Interest Reward lifetime mortgages today!
— Standard Life Home Finance (@standardlifehf) April 7, 2025
Login to our connect portal to find out how much your client could release https://t.co/i9BvCKQHiX #propertywealth #laterlifelending #retirementsolutions pic.twitter.com/IQX3Q3xakC
“These higher LTVs are part of our mission to bring the many benefits of the Horizon lifetime mortgage range to a greater number of later life customers,” said Sanjay Gadhia (pictured far right), head of sales at Standard Life Home Finance, has raised the maximum LTVs across its Horizon lifetime mortgage range from 49% to 51. “The ability to secure a discounted rate through making full or partial interest payments on Horizon Interest Reward puts the client in control.”
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