Lenders improve pricing across residential, BTL, and development finance products
Coventry for intermediaries, Furness Building Society and Assetz Capital have each introduced reductions to their mortgage and development finance rates, aiming to provide borrowers and brokers with more competitive options.
Coventry for intermediaries has lowered selected residential mortgage rates by as much as 16 basis points (bps). The changes apply to both new and existing customers, following the lender’s recent adjustment to its affordability stress tests.
As a result, some borrowers may now qualify for up to £35,000 in additional borrowing. The updated product range includes a 2-year fixed rate at 4.00% until 31 December 2027 for interest-only remortgages at 50% loan-to-value (LTV), with a £999 fee and the option of £350 cashback or use of the Remortgage Transfer Service. Another option is a 2-year fixed rate at 3.90% for purchases at 65% LTV, also with a £999 fee.
“We’re continuing our focus on supporting home ownership, and we’re pleased to announce rate reductions for those looking to take that first or next step,” said Ben Williams, corporate account manager at Coventry Building Society.
“As well as reducing our rates, we’ve updated our affordability stress testing – meaning some clients may be able to borrow more. These positive changes will help brokers and more of their clients achieve their aspirations.”
Furness Building Society has also reduced rates across its residential and buy-to-let mortgage offerings. The revised range features a two-year fixed rate at 4.29% for residential mortgages up to 90% LTV, targeting clients with smaller deposits.
Furness has also refreshed its shared ownership range, with a five-year fixed rate at 4.17% for 85% loan to share (75% LTV), aimed at first-time buyers. All products include £250 cashback and are available for properties in England, Scotland and Wales.
“At Furness, we know that every case is unique – and brokers value being able to speak to someone who will listen,” said Jonathan Cartlidge, head of member and broker strategy at Furness Building Society. “Our new rates, including the 4.29% 2-year fix at 90% LTV, offer great value without compromising on service. We’re here to help brokers find solutions, whether it’s for a straightforward case or something more complex.”
Meanwhile, SME property finance provider Assetz Capital has announced a further reduction in its headline ground-up development finance rate, now starting from 8.60%. This is the third rate cut in six months, following reductions from 9.10% in February and 8.85% in April.
The lender is also offering flexible day one loan advances and enhanced options for experienced developers, including the ability to model early-stage plot sales and access gross funding structures up to 72.5% loan-to-gross development value (LGDV), with an option to move to 87.5% gross loan-to-cost.
Loans from £1 million to £10 million are available, supported by regional relationship directors and a fast-track credit process that can deliver decisions within 24 hours for straightforward cases.
“This latest reduction to 8.60% reflects our belief that fair, accessible finance is vital for SME developers to maintain momentum,” said Andrew Fraser, chief commercial officer at Assetz Capital. “Combined with enhanced day one loan advances and our fast-track credit process, we’re enabling clients to reduce stress, improve margins, and move projects forward without delay.”
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