Changes made on residential, BTL, and later life products
Several UK lenders have announced significant changes to their mortgage offerings, highlighting a trend towards more competitive rates and streamlined products across the market.
Aldermore has introduced new limited edition buy-to-let products, effective today. The offerings include a two-year fixed rate with a 3% fee at 75% loan-to-value, starting from 5.09% for individual and company landlords with single residential investment properties. For multi-property portfolios, the two-year fixed rate with a 3% fee at 75% LTV starts from 4.99%.
“At Aldermore, we’re constantly reviewing our produce range to ensure we reflect and meet borrowers’ needs,” said Mark Gordon (pictured far left), director of mortgages at Aldermore. “We’re pleased to introduce our latest wave of limited edition products to back more landlords to go for it in life and in business.”
Meanwhile, LendInvest Mortgages launched a streamlined range of residential mortgage products, simplifying options for homeowners and brokers.
The new range includes significant rate reductions, with up to 35 basis points (bps) off two-year fixed term products and up to 30bps off five-year fixes.
“Our goal is to make the mortgage process as simple and efficient as possible for brokers and their clients,” said Paula Mercer (pictured second from left), head of sales at LendInvest. “With these changes, we are confident that we can offer competitive rates in the market while maintaining the high standards of service our customers expect.”
Fintech mortgage lender Gen H also announced rate cuts across its core and homebuying bundle ranges, with reductions between 10 and 30bps.
Rates up to 80% LTV were cut by 15bps, while 85% and 90% LTV two- and three-year rates saw a 10bps reduction. The 95% LTV two- and three-year rates were reduced by 20bps, and 95% LTV five-year rates by 30bps.
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Gen H also expanded its policy allowing friends and family members to act as income boosters on mortgages, with a recent revamp of its foreign national policy driving a 67% increase in foreign national cases.
“The mood across the mortgage market has been positive for the last few weeks as many lenders reduce rates – I’m delighted that we’ve kept pace with the speed of these reductions,” said Pete Dockar (pictured second from right), chief commercial officer at Gen H.
Another lender that has reduced rates is Hanley Economic Building Society, lowering rates by up to 1.24% on variable discount for term retirement interest-only (RIO) mortgages.
The RIO mortgage requiring a Lasting Power of Attorney (LPA) now has an initial pay rate of 5.20%, down from 6.04%. The RIO mortgage without LPA has an initial pay rate of 5.30%, down from 6.54%.
These products,which are available up to 50% LTV, come with no early repayment charges, free valuation, no application or arrangement fees, and £250 cashback.
“Over the years, market dynamics and borrowing demographics have evolved significantly, underscoring the growing importance of the later life lending sector,” said David Lownds (pictured far right), head of products and marketing at Hanley Economic Building Society. “These rate reductions highlight our ongoing commitment to supporting this essential group of borrowers, and intermediaries who are active in this vital sector.”
Virgin Money also announced changes, including reductions in exclusive purchase and remortgage rates.
Its 80% LTV five-year fixed rate with a £895 fee was reduced to 4.52%, while the fee-saver version will drop to 4.62%. Other notable reductions include the Retrofit Boost five-year fixed rates and the Own New fixed rates, with reductions up to 30bps.
Virgin Money is also withdrawing several products, such as the 7-day special 80% LTV purchase fixed rate with a £995 fee at 4.46%.
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