Rate cuts are made across residential and BTL products
Several UK lenders have announced mortgage rate reductions and new product offerings, reflecting a shifting market following the Bank of England’s base rate cut earlier this month.
Hanley Economic Building Society
Hanley Economic Building Society has launched a new two-year fixed rate retirement interest-only (RIO) mortgage and reduced the rate on its fee-free 95% loan-to-value (LTV) two-year fixed product by 12 basis points (bps).
The new RIO mortgage, available up to 65% LTV, has a headline rate of 5.29%. It includes a free valuation, no application fee, and an arrangement fee of £250, deducted from the loan on completion. There are no overpayment restrictions, and the product is open to retired borrowers aged 55 and over, with loan amounts ranging from £30,000 to £2 million at 50% LTV and £1.5 million at 65% LTV.
Hanley Economic has also reduced its fee-free 95% LTV two-year fixed rate mortgage from 5.57% to 5.45%. The product features no application or arrangement fees, a free valuation, and £250 cashback on completion. Loan sizes range from £30,000 to £500,000.
David Lownds (pictured left), head of products and marketing at Hanley Economic, said the changes reaffirm the lender’s commitment to “supporting borrowers at all stages of their homeownership journey” by providing “flexible, accessible mortgage solutions.”
Market Harborough Building Society
Market Harborough Building Society has announced a 20bps reduction in its standard variable rate (SVR), bringing it down to 7.79% from March 1. As a result, its residential and buy-to-let discount rates will also decrease by the same margin.
The reduction applies to residential mortgages, including larger loans up to £5 million, as well as buy-to-let, holiday let, and expat products. Fixed and bridging finance rates remain unchanged.
Iain Smith (pictured centre), head of mortgage distribution at Market Harborough, said the lender remains committed to making its specialist lending solutions even more accessible for clients wanting flexibility.
The changes follow the lender’s 20bps SVR reduction in January and recent adjustments to lending criteria, including a lower interest stress rate on residential loans and a reduction in the minimum equity required for interest-only deals in London and the South East to £300,000.
Fleet Mortgages
In a similar move, buy-to-let specialist lender Fleet Mortgages has announced rate cuts across its two-year fixed products.
The lender has reduced rates by 30bps on its standard and limited company two-year fixed mortgages, which are available up to 75% LTV with a 3% fee. The new rate is 4.39%, down from 4.69%.
Fleet’s two-year fixed EPC A-C product - available for properties with an energy performance certificate rating of ‘C’ or above - has also been cut by 30 bps to 4.29%. It has also reduced rates by 40bps to 4.59% for its two-year fixed house in multiple occupation (HMO)/multi-unit block (MUB) product with a 3% fee. The EPC A-C version of this product has dropped to 4.49%.
The fixed-fee version for HMO/MUB borrowers has been reduced by 50bps to 5.79%, while the product fee remains at £1,999.
Steve Cox (pictured right), chief commercial officer at Fleet Mortgages, said the reductions provide “payment certainty over the next two years in what is likely to be an uncertain pricing period.”
Fleet’s rate cuts follow the recent launch of its two-year tracker mortgage range across its standard, limited company, and HMO/MUB product lines.
The rate reductions across multiple lenders also come amid a changing economic landscape. The Bank of England raised interest rates in 2022 and 2023 to combat inflation but has since lowered them as inflationary pressures have eased. Mortgage lenders are responding by adjusting their rates, providing borrowers with more competitive options.
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