Applying to five-year fixes, pricing has been reduced by up to 0.35%, including a deal at 60% loan to value (LTV) with a rate of 4.15%.
Newcastle for Intermediaries has also released three-year fixes for existing borrowers, with rates starting at 4.05% up to 70% LTV. The mutual will allow borrowers to secure a new rate up to three months before their existing deal expires.
Francesco Di Pietro, head of intermediary mortgages at Newcastle Building Society, said: “By lowering five-year rates and introducing three-year product transfers, we’re increasing choice and flexibility for brokers, while keeping the application process simple and efficient through our online tools.
“We want to make it as easy as possible for brokers to retain their clients and deliver excellent outcomes at maturity.”
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Accord Mortgages lowers BTL affordability stress rates
Accord Mortgages has improved affordability for landlord borrowers by reducing buy-to-let (BTL) stress rates.
The lender said this was to support landlords by easing affordability pressures, which would help to maintain the supply of private rental housing.
It noted that rising interest rates had made it harder for landlords to meet affordability criteria and in response, has lowered interest coverage ratio rates (ICRRs).
Where landlords are remortgaging on a like-for-like basis, for products with a term of five years or more, the ICRR will be 4.75% of the product rate plus 0.35%, whichever is higher. This was previously stressed at the product rate plus 1%.
For products fewer than five years, the ICRR will drop from 5.5% to 4.75%, or product rate plus 0.7%, previously plus 1%, whichever is higher.
For landlords purchasing a property or remortgaging with capital raising, where the product term is five years or more, the ICRR will be 4.75% or product rate plus 0.5%, previously 1%. For terms of fewer than five years, the ICRR is unchanged at 5.5% or product rate plus 2%, whichever is higher.
Accord Mortgages’ ICR remains at 125% for all basic-rate taxpayers and 145% for higher-rate taxpayers.
Nicola Alvarez, head of strategic partnerships and propositions at Accord Mortgages, said: “We recognise the increasing pressures landlords are facing, and as a buy-to-let lender, we’re committed to adapting our approach to help them access the finance they need.
“Refining our affordability criteria allows us to support brokers in helping their landlord clients to navigate a challenging landscape, without compromising their long-term sustainability.”
She added: “The private rental sector is crucial to the functioning of a healthy housing market and economy. Therefore, it’s so important that we, as an industry, continue to look for opportunities to support them and help to maintain the availability of quality rental homes across the UK.”
Earlier this month, Accord Mortgages lowered high-LTV pricing.
TSB increases select rates
TSB has also announced some rate increases to its mortgage range.
The five-year fixed house purchase mortgage rates at 85-90% LTV will go up by 0.1%, and a similar increase has been made to shared ownership purchase products at the same LTV tiers.
Changes are effective from 22 October.
These rate hikes come a few weeks after TSB increased pricing on selected product transfer mortgages.
