Virgin Money and several others cut rates amid improving market conditions
Virgin Money, Leeds Building Society, Kent Reliance for Intermediaries (KRFI), and CHL Mortgages for Intermediaries have announced mortgage rate cuts, continuing the trend of lenders lowering rates amid falling swap rates.
High street lender Virgin Money has lowered rates on a range of fixed mortgage products. Its exclusive purchase rates have been reduced by up to 0.10%, with 80% loan-to-value (LTV) two- and five-year fixed rates now starting from 4.37%. Ten-year fixed rates have seen the largest reduction of up to 0.68%, now starting at 4.89%.
For remortgage customers, two- and five-year fixed rates have been cut by up to 0.10%, starting from 4.43% and 4.34%, respectively. Selected buy-to-let (BTL) products have also seen reductions, with two-year fixed rates now available from 3.59% with a 3% fee. Product transfer rates have been adjusted, with five-year fixed options starting at 4.07%.
Leeds Building Society is also reducing rates by up to 0.30% and launching a new mortgage aimed at first-time buyers. The new five-year fixed product is available at 4.75% with an 85% LTV, featuring zero product fees and £1,000 cashback.
Rate cuts apply to the lender’s new Income Plus mortgage range, designed to improve affordability for first-time buyers, allowing them to borrow up to £52,000 more on average. The Income Plus five-year fixed mortgage is now available at 4.64%, down from 4.74%.
Shared ownership mortgages have also been adjusted, with five-year fixed rates now at 5.04% (was 5.19%) with a £999 fee. A fee-free shared ownership option is available at 5.27%, down from 5.39%, with £500 cashback on completion.
Meanwhile, Kent Reliance for Intermediaries, part of OSB Group, has cut rates on selected buy-to-let mortgages, including product transfers. Limited edition two-year fixed rates now start at 3.69%, while five-year fixed rates begin at 4.39%. Rate reductions have also been applied across standard fixed products up to 75% LTV.
The lender has refreshed its entire buy-to-let product transfer range, with selected rates reduced by up to 40 basis points. Landlord customers can choose from fee options of £0, 1%, or 3%.
Another specialist lender, CHL Mortgages for Intermediaries, has reduced rates by 0.30% across its short-term lets range. The two-year fixed rate now starts at 4.09%, while the five-year fixed rate begins at 4.94%, both at 75% LTV.
Borrowers have multiple fee options, with two-year fixed products offering 3.5% or 5% fee choices, while five-year fixed products come with 3.5%, 5%, or 7% fee options.
Since the Bank of England’s rate cut last month, falling swap rates have fuelled optimism for improved affordability, with lenders having more room for mortgage rate cuts.
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