TSB ups rates; Suffolk BS slashes expat resi rates – round-up
The lender will up two-year fixed first-time buyer and home-mover products up to 90 per cent LTV by up to 0.30 per cent. Pricing begins from 4.69 per cent.
Five-year fixed first-time buyer and home-mover rates will increase by around 0.3 per cent. Rates start from 4.49 per cent.
Two-year fixed remortgage up to 75 per cent LTV will rise by 0.2 per cent along with five-year fixed remortgage rates.
For two-year fixed, rates start from 4.84 per cent and five-year fixed rates begin from 4.44 per cent.
Suffolk BS cuts expat residential mortgage rates
Suffolk Building Society has lowered expat residential mortgage rates by up to 0.55 per cent and added lower-rate high deals.
Its two-year fixed expat residential rate has fallen from 6.09 per cent to 5.59 per cent. It has a maximum loan size of £1m, and this product has a £199 application fee and a £999 completion fee.
The firm’s expat residential two-year fixed rate large loan has fallen to 5.59 per cent with a maximum loan of £2m. The application fee is £199 and the completion fee is 0.2 per cent of the loan amount.
Its two-year interest-only expat residential rate has decreased from 6.44 per cent to 5.89 per cent. The product has a maximum loan size of £500,000, an application fee of £199 and a completion fee of £999.
The deals are available up to 80 per cent loan to value (LTV) and overpayments of up to 50 per cent of the original loan amount.
The firm has brought out a two-year buy-to-let (BTL) fixed rate of 4.79 per cent and expat BTL two-year fixed rate of 5.29 per cent. It has a three per cent completion fee, which will help landlords up their maximum loan available when using the stressed interest coverage ratio.
The application fee is £199, overpayments are up to 50 per cent of the original loan amount and loans go up to 80 per cent LTV, with a maximum loan size of £1m.
Charlotte Grimshaw, head of mortgages at Suffolk Building Society, said: “We’re pleased to announce we’re reducing our rates across our expat ranges, further supporting the new currencies we’ve recently introduced for expat residential.
“While mortgage rates remain higher than previous years, we understand that achieving their desired loan amount has become an issue for many BTL landlords. By offering a lower initial rate with a higher fee, we’re providing an alternative option for those landlords who might prefer to pay a higher fee for a lower monthly mortgage payment.”
The change comes off the back of a number of criteria enhancements by the lender earlier this week.
Paragon unveils limited-edition deals; Gen H cuts rates – round-up
Pricing begins from 4.65 per cent for portfolio landlords looking to buy single self-contained homes with an Energy Performance Certificate (EPC) rating of between A and C, and goes up to 4.7 per cent for properties with lower EPC ratings.
For portfolio landlords looking at buying or remortgaging houses in multiple occupation (HMO) or multi-unit blocks (MUBs) can secure rates at 4.9 per cent.
The deals are offered with a five per cent fee, with an interest coverage ratio (ICR) calculated at five per cent.
The limited-edition products also have a trio of nil-fee options, priced at 5.7 per cent for a green mortgage, 5.75 per cent for homes with an EPC rating of D or E and 5.595 per cent HMO and MUBs.
ICRs are calculated in line with these initial rates.
Louisa Sedgwick, commercial director at Paragon Bank, said: “These limited-edition products are priced at around 25 basis points lower than our core range and provide more options for landlords looking to expand their portfolio or remortgage existing properties.
“We’re enhancing our range at 65 per cent loan to value (LTV) to provide some attractive options for those who have larger deposits or who would like to leverage the equity in their portfolio to expand, increasing the number of homes that are very much needed to meet strong levels of tenant demand.”
Last week, the lender brought out some sub-four per cent mortgage deals to appeal to landlords.
Gen H reduces rates
Gen H has lowered rates by up to 0.1 per cent, with products available from 5:30pm today.
The lender said that three- and five-year deals at 90 and 95 per cent LTV products have reduced by up to 0.1 per cent, and some homebuying products have decreased by around two and five basis points.
Gen H said that there had been a 134 per cent increase in the volume of applications with income boosters in January, and within January applications, over 40 per cent were first-time buyers and 24 per cent were aspiring second-time buyers.
Pete Dockar, Gen H chief commercial officer, said: “We’ve seen a consistent increase in income booster enquiries month-on-month in tandem with market-wide demand for greater first-time buyer support.
“It has been a volatile few weeks in mortgage pricing, but we feel it’s more critical than ever to deliver on our promises to keep our rates as low as we can – especially at those higher LTVs. We’re always on the lookout for opportunities to cut rates across the board, and will be monitoring this very closely in coming days and weeks to see if we can make further reductions.”
Average mortgage rates continue to slide – Rightmove
According to Rightmove, the average five-year fixed mortgage rate is now 4.64 per cent, down from 4.77 per cent a year ago.
The average two-year fixed mortgage rate stands at 4.97 per cent, a decrease from 5.10 per cent a year ago.
At 60 per cent LTV, the average two-year fixed rate is 4.41 per cent, with the lowest rate at 4.17 per cent. This is down from an average rate of 4.73 per cent a year ago.
Its average five-year fixed rate is 4.1 per cent, and the bottom-most rate is 3.88 per cent. The average five-year fixed rate a year ago is 4.41 per cent.
Going up to 75 per cent LTV, the average two-year fixed rate is 4.8 per cent and the lowest rate is 4.36 per cent. The average rate a year ago was 4.89 per cent.
The average five-year fixed rate at the same LTV tier is 4.55 per cent, and the cheapest rate is 4.11 per cent. The average rate a year ago stood at 4.55 per cent.
At 85 per cent LTV, the average two-year fixed rate is 4.96 per cent and the lowest rate is 4.57 per cent. This is down from 5.12 per cent a year ago.
The average five-year fixed rate at 85 per cent LTV is 4.58 per cent and the bottom-most rate is 4.13 per cent. The average rate last year at this LTV tier was 4.79 per cent.
Within the 90 per cent LTV tier, the average two-year fixed rate is 5.19 per cent, and the cheapest rate is 4.84 per cent. The average rate a year ago was 5.51 per cent.
The average five-year fixed rate is 4.74 per cent and the cheapest rate is 4.39 per cent. The average rate a year ago was pegged at 5.02 per cent.
Going up to 95 per cent LTV, the average two-year fixed rate is 5.59 per cent, the bottom-most rate is 5.15 per cent. The average rate last year was 5.64 per cent.
The average five-year fixed rate at the same LTV is 5.25 per cent and the lowest rate is 4.84 per cent. The average rate a year ago stood at 5.28 per cent.
Coventry BS cuts rates; Hanley Economic BS adds RIO deal – round-up
Residential rates have fallen by around 0.15 per cent and BTL rates have decreased by around 0.4 per cent.
Highlights include its five-year fixed BTL remortgage rate at 65 per cent loan to value (LTV), which stands at 4.26 per cent. It comes with a £1,999 fee, option of £350 cashback or the use of its remortgage transfer service.
The firm’s two-year fixed rate for first-time buyers at 90 per cent LTV with no fee has gone down to 5.14 per cent and comes with £500 cashback.
The lender lowered rates three times in January, including last week with cuts of up to 0.37 per cent on select deals.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Brokers are essential for future homeowners who are keen to step onto the property ladder, existing homeowners looking to secure their next deal, and landlords alike. Our latest reductions are designed to support brokers by providing more great-value options for their clients.”
Hanley Economic BS launches no-fee, no-ERC RIO deal
Hanley Economic BS has brought out a no-fee medium-term fixed rate retirement interest-only (RIO) mortgage with no early repayment charges (ERC).
The deal has a headline rate of 5.55 per cent up to 65 per cent LTV for purchase and remortgage.
It has a minimum loan size of £500,00 and can be offered to applicants over 55.
The product also has no overpayment restrictions, free valuation and can be used for properties in England, Wales and Scotland.
The mutual cut first-time buyer rates earlier this week by up to 0.7 per cent.
David Lownds, head of products and marketing at Hanley Economic BS, said: “As a society, we remain committed to servicing the needs of borrowers from the beginning of their homeownership journey right through to the end of their lending cycle.
“Over the years, market dynamics and borrowing demographics have changed significantly to emphasise the growing importance attached to the later life lending sector and this dependence is only likely to grow in 2024.
“RIO mortgages provide an important option for older generations who are looking to utilise significant amounts of equity for a variety of purposes, and we hope that our no-fee, no-ERC fixed rate product will prove to be an appropriate choice for those looking to fulfil a better retirement or to help loved ones onto and up the property ladder.”
Santander lowers BTL affordability rates; Atom cuts pricing – round-up
Its standard affordability rate for buy-to-let will decrease from 8.04 per cent to 7.38 per cent, while the five-year fixed affordability rate will fall from 6.54 per cent to 5.88 per cent.
The affordability rate for its pound-for-pound remortgage will be set at 5.88 per cent, also down from 6.54 per cent.
The changes will not apply to full mortgage applications submitted by 29 January but the new policy will apply to applications placed from 30 January.
Atom Bank cuts prime mortgage rates
Atom Bank has lowered prime mortgage rates by up to 0.25 per cent, including two, three and five-year fixed rates.
The digital bank has cut three-year fixed rates between 80 and 95 per cent loan to value (LTV) by up to 0.25 per cent with pricing beginning from 4.89 per cent.
Atom has also reduced two-year fixed rates at 90 and 95 per cent LTV by up to 0.2 per cent, with rates starting from 5.19 per cent.
Five-year fixed rates have gone down by around 0.15 per cent with pricing beginning from 4.54 per cent.
All the products come with a free valuation and remortgage products come with fee-assisted legals.
Richard Harrison, head of mortgages at Atom, said: “We are really pleased to be able to deliver yet another rate reduction to customers, cutting prices at higher LTVs as we continue to help this vital segment of the market.
“This latest round of cuts will make our mortgages even more accessible to a greater number of aspiring homebuyers and remortgagors, and behind all of our products is a speedy digital process that delivers increased certainty as well as excellent value.”
The lender lowered commercial rates to 5.75 per cent yesterday and reduced five-year fixed rates by up to 0.7 per cent at the start of the month.
Shawbrook cuts BTL, commercial, semi-commercial and bridging rates
Complex buy-to-let rates have been cut by up to 0.55 per cent, with pricing beginning from 5.69 per cent.
Digital buy-to-let rates have decreased by around 0.5 per cent and rates start from 5.99 per cent.
On the semi-commercial side, rate reductions have fallen by around 0.35 per cent with rates beginning from 6.79 per cent and commercial rates have gone down by 0.55 per cent with pricing starting from 7.44 per cent.
Bridging rates have decreased by around 0.1 per cent per month with rates starting from 0.69 per cent per month.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “In response to the dynamic market conditions, we are pleased to announce a range of rate reductions, designed to empower professional investors with the tools they need to achieve their property ambitions in 2024.
“Having navigated the challenges posed by increasing interest rates in 2023, these adjustments aim to support investors and give them the confidence to proactively engage in the market, backed by a broad range of funding solutions from Shawbrook.”
Hanley Economic BS slashes FTB rates by 0.7 per cent
The lender said that the rate for the two-year fixed rate at 95 per cent LTV has fallen from 6.39 per cent to 5.69 per cent.
The product comes with free valuation alongside no application or arrangement fees.
The deal is available for properties throughout England, Wales, and Scotland with a minimum loan of £30,000 and maximum loan of £500,000.
Each case is assessed on an individual basis by the in-house underwriting team so there is no credit scoring.
Hanley Economic: Q1 to deliver pent-up first-time buyer demand’
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “First-time buyers have certainly not had it easy over the past 12 to 18 months and, as a lending community, we need to do all we can to ensure they have access to a range of innovative, competitive options which can help them onto the property ladder in a responsible manner.”
“By removing any upfront fees at the 95 per cent LTV lending band, we can help reduce some financial burdens which potential buyers can put towards a deposit and not have to add onto their mortgage. We expect Q1 to deliver some pent-up first-time buyer demand and we are committed to servicing these needs where possible.”
Barclays cuts resi and BTL rates
The mortgage rate changes will come into force from tomorrow.
Within its residential purchase-only range, Barclays has made cuts of up to 0.41 per cent. This includes its mortgage guarantee fee-free five-year fixed rate, which has fallen from 6.27 per cent to 5.86 per cent.
The lender’s Springboard five-year fixed rate with no fee at 100 per cent LTV has decreased from 6.29 per cent to 5.99 per cent and at 95 per cent LTV its rate has gone down from 6.24 per cent to 5.95 per cent.
In its remortgage-only range, an example of its rate cuts includes its Great Escape two-year fixed rate with no fee at 60 per cent LTV, which has gone down from 4.81 per cent to 4.51 per cent.
On the purchase and remortgage side, an example of its reduction includes its two-year fixed rate at 60 per cent LTV, which has decreased from 4.8 per cent to 4.34 per cent. It has a £1,999 fee.
Within its buy-to-let range, cuts of around 0.5 per cent have been made to its purchase-only rates. Its two-year fixed rate with £1,295 fee at 75 per cent LTV has gone down from 6.18 per cent to 5.68 per cent.
Buy-to-let remortgage rates have also fallen by around 0.5 per cent. The lender’s two-year fixed remortgage no-fee deal at 60 per cent LTV has decreased from 6.3 per cent to 5.8 per cent.
Buy-to-let purchase and remortgage have also decreased by the same amount. Its two-year fixed rate at 60 per cent LTV with £2,495 fee has reduced from 6.3 per cent to 5.8 per cent.
Together reduces personal and commercial rates
Reductions between 0.2 per cent and 0.75 per cent have been made, which will allow the firm to support more broker clients.
First charge mortgage rates begin from 8.4 per cent for a five-year fixed rate in its prime plus range for clients with any demerits.
Buy-to-let rates have been cut, for both first and second charge products. An example includes its five-year fixed rate has been cut by 0.4 per cent to 7.59 per cent and its second charge five-year fixed rate begins from 8.59 per cent.
Together: ‘Opening the door to more customers’
Marc Goldberg (pictured), CEO of sales and distribution at Together, said: “We’re pleased to be able to provide even more support through rate reductions across many of our personal and commercial finance product ranges.
“We are responding to improving conditions in lending markets after a great deal of turmoil over the last few years and are glad to be able to pass on reductions in our own cost of borrowing to our valued partners and their clients.
“As always, we continue to apply our common sense through our flexible criteria. However, these new reduced rates could open the door to more customers, allowing them to achieve their property ambitions.”
Phil Gray, managing director of Watts Commercial Finance, added: “It’s great to see another round of rate reductions at Together. It shows their strong appetite to lend, to get the best possible outcomes for our clients, so it’s fantastic news for the consumer and the wider market.”
TMW and Tipton decrease rates – round-up
This is the second rate cut in a week as the firm lowered select rates by up to 1.2 per cent.
As an example, its two-year fixed rate for purchase and remortgage at 65 per cent loan to value (LTV) has fallen by 0.15 per cent to 3.54 per cent. It has a three per cent fee.
The lender’s two-year fixed rate for purchase and remortgage at 75 per cent LTV has decreased by 0.05 per cent to 3.94 per cent. It has a £3,995 fee.
TMW’s five-year fixed rate for purchase and remortgage at 55 per cent LTV has gone down by up to 0.1 per cent to 3.84 per cent. It has a three per cent fee.
Joe Avarne, senior manager, buy-to-let mortgages at TMW, said: “As one of the largest buy-to-let providers in the market, TMW remains committed to supporting landlords by maintaining our competitive position. These latest cuts will see TMW rates starting from 3.54 per cent and will be some of the lowest rates in the market.”
Tipton and Coseley BS reduces resi and BTL expat rates
Tipton and Coseley Building Society has made a range of rate cuts across its residential and buy-to-let product range.
Within its residential purchase range, its two-year fixed rate at 75 per cent LTV with £999 fee is 4.99 per cent.
The lender’s two-year fixed rate at 90 per cent LTV with a £999 fee is 5.4 per cent and its five-year fixed rate at 95 per cent LTV with the same fee is 5.34 per cent.
The firm’s five-year shared ownership rate at 95 per cent LTV with £999 fee is 5.57 per cent.
In its buy-to-let expat deals, its five-year fixed purchase rate at 70 per cent LTV is 5.64 per cent and at 75 per cent LTV, this goes up to 5.84 per cent.
Its five-year fixed remortgage rate at 70 per cent LTV is 5.74 per and at 75 per cent LTV, the rate goes up to 5.94 per cent.
All the above come with a £1,499 fee.
Jason Newsway, director of sales and marketing at the Tipton, said: “We have continued our support to borrowers, new and existing, with cuts to our residential and buy-to-let fixed rate product range. We’ll work to offer competitive product rates during the course of the year as market conditions improve and the Bank of England lowers interest rates.”