Rate cuts, higher LTV options, and flexible criteria signal growing lender competition
A wave of mortgage product updates has swept across the UK market as lenders adjust pricing, criteria, and loan options to attract a broader range of borrowers, including expats, first-time buyers, professionals, and landlords.
Suffolk Building Society has introduced a new selection of 90% loan-to-value (LTV) expat residential mortgages, aimed at customers working overseas with smaller deposits. The new offerings include two- and five-year fixed rates and a two-year discount option, with maximum loan sizes of £650,000. In addition, the mutual has trimmed rates on its 80% LTV two-year fixed products by 10 basis points (bps), now starting from 5.59% for capital and interest, and 5.79% for interest-only.
The lender supports a wide expat profile, accepting 16 currencies and various countries of residence. It also permits joint applications where one applicant is a British national and has no age cap on borrowing. Products are available for both purchase and remortgage.
Meanwhile, Gatehouse Bank has relaunched its Shariah-compliant Home Purchase Plans (HPP) with higher finance-to-value (FTV) limits. The bank now offers 95% FTV options to UK resident first-time buyers and home movers seeking up to £600,000 in finance, and 90% FTV for loans up to £750,000. The 95% FTV option applies to new build houses, while the 90% limit applies to new build flats.
Saffron for Intermediaries has rolled out significant changes across its product suite. Key among them is the increase in the loan-to-income (LTI) ratio for professionals, rising from 5.5 to six times for loans up to 80% LTV. The eligibility window for qualification has been extended to 10 years post-certification, and mortgage brokers have been added to the list of recognised professions.
Saffron has also overhauled its development finance offering, raising maximum loan sizes from £3 million to £5 million and increasing the loan-to-cost and loan-to-GDV caps. Criteria improvements include the acceptance of foster income, simplified documentation for the self-employed, and reduced paperwork for portfolio landlords.
Rates have also been reduced across several segments, with five-year fixed rates now starting at 4.57% for owner-occupiers, 4.87% for contractors, and 5.07% for the self-employed.
Similarly, high street lender Virgin Money has implemented rate reductions across its purchase, remortgage, and buy-to-let ranges, with decreases of up to 20bps. The cuts span LTV tiers from 65% to 95%, including shared ownership and green mortgage products. A free valuation is now available on all new purchase applications.
Buy-to-let rates have also been lowered, with selected products starting at 3.32% for two-year fixed rates with a 3% fee at 75% LTV.
Specialist buy-to-let lender The Mortgage Works has also reduced rates on selected two- and five-year fixed BTL products. Reductions include 10bps off its 65% LTV two-year fix, now priced at 3.14% with a 3% fee, and 25bps off its five-year limited company product at 75% LTV, now 5.34%.
The lender has also launched a new cashback range for limited company landlords remortgaging, offering free valuations and £750 cashback on selected five-year fixed products.
Elsewhere, Vernon Building Society has enhanced its discounted variable rate mortgages by allowing borrowers to make annual capital repayments of up to 25% without incurring early repayment charges.
Another specialist lender, London Credit, has lowered rates on its commercial and semi-commercial bridging products by 10bps. Rates now start from 0.75% per month for loans up to 60% LTV. The offer applies to applications with legal undertakings by May 31 and completion by July 15, 2025.
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