Saffron, Nottingham, Newbury, and Molo improve affordability for a wide range of borrowers
Several UK lenders have announced rate reductions and affordability changes across various mortgage products, aimed at supporting borrowers and intermediaries in a shifting interest rate environment.
Saffron for Intermediaries has reduced rates by 0.20% across its owner occupied fixed rate range. The updated pricing includes an 80% LTV two-year fix at 5.17% and a five-year fix at 4.77%, both with a £999 arrangement fee. Higher LTV options include an 85% LTV two-year fix at 5.27% and a 90% LTV two-year fix at 5.37%. All products come with free valuations.
“We’re always keeping a close eye on the market... we’re still pleased to be in a position to make these cuts across our owner occupied range,” said Tony Hall (pictured far left), head of business development at Saffron for Intermediaries.
Nottingham Building Society has also adjusted its affordability criteria, reducing residential mortgage stress rates by 0.15% to a new low of 6.20%. Buy-to-let (BTL) stress rates have been cut by 0.30%, with the lowest now at 5.70%. The move follows the launch of new residential cashback products offering up to £5,000 in response to upcoming Stamp Duty changes.
“These changes are our latest step in making sure as many people as possible have access to fairer and more flexible mortgage solutions,” said Matt Kingston (pictured second from left), sales director at Nottingham Building Society.
Similarly, Newbury Building Society has cut rates on its Shared Ownership and residential discounted products. Shared Ownership fixed rates now start from 4.89% for 85% LTV two- and three-year terms, and from 5.09% at 95% LTV. The five-year Shared Ownership rate was also reduced to 4.95%. Standard residential three-year discounted rates were lowered to 4.89% (85% LTV) and 4.99% (90% LTV). All Shared Ownership products remain fee-free.
“We hope these will help first-time buyers with a smaller deposit, as well as those looking to move up the ladder, fund their home ownership ambitions,” said Roger Knight (pictured second from right), mortgage product manager at Newbury Building Society.
Meanwhile, specialist lender Molo Finance announced a 15 basis-point cut to its house in multiple occupation (HMO) and multi-unit freehold block (MUFB) BTL mortgage rates. Two-year fixed rates now start at 3.23%, and five-year fixed rates from 4.83%, with no rate premium for larger properties. Other specialist BTL rates remain unchanged, with pricing starting from 3.13% for UK residents.
“By reducing HMO and MUFB rates, we are helping intermediaries reduce costs, scale faster, and secure long-term growth for their clients,” said Martin Sims (pictured far right), distribution director at Molo Finance.
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