Coventry, Gatehouse, and Atom respond to market demand with reduced rates and relaxed criteria
Coventry for intermediaries, Gatehouse Bank, and Atom bank have announced rate reductions and product enhancements aimed at supporting brokers and borrowers as the year-end approaches.
Coventry for intermediaries has reduced fixed rates across its residential and buy-to-let offerings by up to 26 basis points (bps) and 25bps, respectively.
Key products include a two-year fixed rate of 4.59% at 65% loan-to-value (LTV) with no product fee for residential purchases, and a five-year fixed rate of 4.67% at 75% LTV for existing BTL clients.
“Even though we’re getting to the end of the year, interest from borrowers remains busy,” said Jonathan Stinton (pictured left), head of intermediary relationships at Coventry Building Society. “New and existing borrowers are keen to plan ahead, so we want to support brokers by offering products which will help their clients get into the best position for 2025.”
Gatehouse Bank, a provider of Shariah-compliant home finance, introduced reduced rates on two- and five-year fixed term BTL Purchase Plans for UK residents, UK expats, and international residents, with a minimum finance amount of £500,000. A new green home finance option has also been launched, offering a 0.10% rental rate discount for properties with an energy performance certificate (EPC) rating of ‘A’ or ‘B’.
In addition to rate changes, Gatehouse Bank has reduced the minimum income required for international customers seeking top slicing from £100,000 to £50,000, while maintaining £32,000 for UK residents and expats. Other updates include increasing the validity period for new-build property offers to six months.
“Following the reintroduction of top slicing earlier this year, we hope that these additional product and criteria changes will help more UK residents, UK expats and international residents seeking to purchase a property in the UK,” said Gemma Donnelly (pictured centre), head of customer propositions at Gatehouse Bank.
Meanwhile, Atom bank has cut rates across its Prime residential mortgage range by 10bps, with 95% LTV rates now starting at 5.59% for a two-year fix, 5.44% for a three-year fix, and 5.24% for a five-year fix. Rate reductions also extend to Further Advance and Retention products.
Atom bank has also enhanced its criteria to broaden accessibility, raising maximum loan-to-income multiples to six times income for borrowers earning over £75,000 and increasing the maximum LTV to 95% for new-build flats and houses in London and the South East. In addition, the lender has eased its Near Prime criteria by increasing the threshold for unsatisfied register defaults to £2,500 and shortening the review period for defaults from three years to two.
“The combination of keen pricing, cutting edge technology and a laser-like focus on working faster and more efficiently is helping Atom bank build a strong reputation with brokers,” said Richard Harrison (pictured right), head of mortgages at Atom Bank.
“The fact that we have been named best bank in the Smart Money People Mortgage Lender Benchmark for H2 of 2024 – our third straight win – shows how our products and processes are resonating with advisers and their clients. We are determined to maintain that momentum in 2025 and beyond.”
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