Rate cuts were made in response to changing market conditions
Four mortgage lenders have recently announced reductions in rates across various products to enhance affordability for a range of borrowers, including first-time buyers, buy-to-let investors, and those seeking remortgages.
Coventry for intermediaries has reduced its fixed rates by up to 19 basis points (bps) for residential products and 45bps for buy-to-let.
Repriced products include a two-year fixed rate at 5.43% for 90% loan-to-value (LTV) with no product fee, targeted at first-time buyers and offering £500 cashback. A five-year fixed rate for buy-to-let remortgages has also dropped to 4.52%, with a £1,999 fee and £350 cashback or the option to use the lender’s Remortgage Transfer Service.
“Many of our rates are reducing, with some of our reductions going to options most suited for first-time buyers,” said Ben Williams (pictured left), corporate account manager at Coventry Building Society. “As well as competitive rates, many of these deals also come with cashback which could be handy to help new buyers with moving costs.”
Mansfield Building Society has similarly cut rates across its prime residential, shared ownership, and buy-to-let ranges by up to 70bps.
New five-year fixed rates have been introduced for prime residential borrowers, aimed at further easing affordability stress. The mutual has also lowered its standard variable rate (SVR) and follow-on rate, with the latter now at 6.90%, down from 7.15%, to provide more competitive options for borrowers nearing the end of their initial terms.
“We’ve reacted quickly to changing market conditions, including the base rate reduction,” said Tom Denman-Molloy (pictured centre), intermediary sales manager at Mansfield Building Society. “Not only will the rate reductions help keep monthly payments lower, but they will also enhance borrowers’ buying power.”
Specialist property lender Together has decreased rates on its discounted rate mortgage products by 25bps, reflecting the Bank of England’s base rate cut.
The lender’s first charge products now start at 8.85%, while second charge products begin at 9.15%.
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“We’re pleased that we’re able to pass on the lower cost of our own borrowing to our valued customers through our broker network,” said Tanya Elmaz (pictured right), director of intermediaries at Together. “We launched our innovative discounted rate mortgage range to offer flexibility on rates for borrowers who didn’t expect to repay the full loan amount during the initial two-year period, but wanted a mortgage where the rate could reduce over the term.”
Meanwhile, Virgin Money has launched a range of new fixed rate mortgage products, with rates starting from 4.85% for five-year fixes on remortgages at 75% LTV.
First-time buyers can access a five-year fixed rate mortgage at 5.19% with a £1,495 fee at 90% LTV. The lender is offering free valuations for purchase customers and cashback incentives for remortgages. Virgin Money has also withdrawn several existing products, including its Fix and Switch five-year fixed rates.
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