This follows the first cut to the Bank of England base rate since the start of the pandemic
Days after the Bank of England decided to bring down the base rate by 0.25% to 5%, more UK lenders have announced reductions in mortgage rates.
Buy-to-let lender Landbay has lowered rates across its standard five-year fixed and small house in multiple occupation (HMO)/multi-unit freehold blocks (MUFB) ranges.
The reductions follow a previous decrease of up to 0.40% on its standard two-year and new non-portfolio products. The latest cuts include a reduction of up to 0.20% on five-year fixed rate products available at up to 65% and 75% loan-to-value (LTV). Additionally, 12 products in the small HMO/MUFB range saw rate reductions of up to 0.10%.
“Following the positive news of a first cut to the base rate since the start of the pandemic, we’re really pleased to be able to respond with a fresh round of rate reductions,” said Rob Stanton (pictured left), sales and distribution director at Landbay.
“Even in the current market, five-year fixes are still incredibly popular, while good quality HMOs continue to be in high demand and provide the necessary yields many landlords require.”
🔔 We've done it again! 🚀
— LANDBAY (@LandbayUK) August 1, 2024
We've cut rates by up to 0.40% on our standard fixed products and launched new two-year options with up to 55% and 75% LTVs! 🎉💼
Visit our full product range here 👉https://t.co/p0rB8LyeOR#Buytolet #Ratereductions #NewProducts #MortgageDeals pic.twitter.com/6F97OhwMFg
In a similar move, Family Building Society has launched a revised range of reduced price owner-occupier repayment and interest-only products.
The lender has cut rates by 0.10% on its core two- and five-year fixed rate repayment products, with rates starting from 4.79% for five-year fixes. For interest-only products, rates have been reduced by 0.20%, with five-year fixed rates now starting from 5.34%.
“As interest rates continue their downward trajectory, helped by the recent Bank of England bank rate announcement, these reductions will bring further relief to hard pressed borrowers looking for the certainty of a fixed rate deal,” said Darren Deacon (pictured centre), head of intermediary sales at Family Building Society.
Mansfield Building Society has also adjusted its offerings, reducing rates on its Credit Repair and Versatility mortgage ranges by up to 0.40%.
The mutual’s two-year fixed-rate Versatility product, up to 80% LTV, now starts at 6.39%, while other Versatility products and the Credit Repair range have seen similar reductions. These products are designed to accommodate borrowers with complex financial situations, including those with active debt management plans or limited employment history.
“With more interest rate stability returning to the market, we wanted to do everything we can to help those with complex circumstances who are underserved by mainstream lenders,” said Tom Denman-Molloy (pictured right), intermediary sales manager at Mansfield Building Society.
On Thursday, within minutes of the Bank of England’s announcement of its decision, high street lender Santander UK was among the first to reduce its rates. Other lenders, particularly banks, soon followed suit.
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