Rate cuts span high LTV, remortgage, expat, and specialist lending segments
Several lenders have unveiled a fresh wave of mortgage rate reductions, with Santander UK leading the latest moves to improve affordability across a wide range of home loan products.
Santander UK has announced rate reductions of up to 19 basis points (bps) across more than 60 mortgage products, effective from today, May 20. The cuts apply to products for home movers, first-time buyers, new build purchasers, remortgagers and buy-to-let borrowers.
Among the standout products for home movers are a 60% loan-to-value (LTV) two-year fixed rate with a £999 fee, now reduced by 0.09% to 3.80%, and a 90% LTV five-year fixed with no fee and £250 cashback, reduced by 0.13% to 4.49%.
For first-time buyers, the 85% LTV two-year fixed rate with no fee and £250 cashback has been cut by 0.11% to 4.47%, a rate that Santander says is currently top of the market. In the remortgage space, the lender’s 60% LTV two-year fixed rate with no fee now stands at 4.13% following a 0.19% cut.
Meanwhile, Suffolk Building Society also introduced cuts of up to 0.24% on seven of its two-year fixed rate residential and expat residential mortgage products. The new rates are aimed at borrowers in or moving into retirement, with no maximum age restrictions at application or maturity.
Notable reductions include the 80% LTV residential capital and interest product, reduced by 24bps to 4.85%, and the 90% LTV expat residential two-year fixed, lowered by 20bps to 5.70%.
Similarly, specialist lender Century Capital has reduced pricing across its Century PLUS range by 14bps, with rates now starting at 0.75%. The change applies to both first and second charge loans and expands the lender’s reach beyond its core prime lending market.
Century PLUS is available for residential properties across England, for loans ranging from £250,000 to £2.5m. Monthly fixed rates for first charges now begin at 0.75%, down from 0.89%, while second charge rates start at 0.79%.
Another lender, Landbay, has implemented significant rate reductions of up to 80bps across its buy-to-let range. Its first-time landlord house in multiple occupation (HMO)/multi-unit freehold block (MUFB) products now start at 4.09%, while trading company rates have also dropped to the same level.
Standard and AVM-supported two-year fixed rates have been lowered by 0.35%, now starting at 3.74% with a 5% fee. Rates for small HMO/MUFB loans have seen reductions of up to 0.60%, beginning at 3.89%.
Landbay has also adjusted pricing on its product transfer options, with two-year fixed rates reduced by 45bps. All changes follow an earlier rate cut this month on the lender’s non-portfolio and five-year fixed ranges.
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