Mortgage providers have slashed rates and increased maximum mortgage terms to entice borrowers during another week of price reductions.
Santander is the latest provider to reduce its rates, with buy-to-let and residential mortgage products dropping up to 0.29%. A two-year fix at 85% loan to value (LTV) for a residential purchase mortgage is now priced at 5.25% – a drop from 5.52%.
Borrowers looking for a lower financing amount can purchase a 60% LTV two-year fix for 4.94% and both products have a £999 fee included.
The lender’s 75% LTV buy-to-let deal with a £1,749 fee decreased by 0.17% to 5.20% and its 75% LTV equivalent is priced at 5.40%, down from 5.49%.
Rates fall across the market
Across the wider market, an average two-year fixed rate mortgage at 60% LTV is 4.90% – down from 5.52% a year ago.
An average two-year fix at 85% LTV is currently 5.69%, less than the 5.81% rate in 2022 according to Rightmove’s data.
NatWest cuts new business rates
NatWest has also made cuts in the shape of new business mortgage rates, which plummeted by 1.06% on its two-year fixed buy-to-let deal. The new deal is 4.79% at 75% LTV but has a higher product fee of £3,499 – a jump from £1,495.
Rates below 6% on the cards at 90% LTV with Barclays
The cuts continue on two and five-year remortgage and purchase deals for homeowners considering buy-to-let products as rates have decreased by up to 0.55%.
Mortgages with environmentally friendly incentives have dipped by up to 0.42% too. Residential borrowers are offered a 60% LTV at 4.47%, which has a product fee of £1,495.
Barclays kicked off the cuts at the beginning of the week by announcing it had slashed rates for borrowers needing bigger loans and customers using a smaller deposit.
Its two-year fixed term at 90% LTV without a fee went below 6%, going down from 6.08% to 5.78%. For the same term at 95% LTV that are under the Mortgage Guarantee Scheme, rates decreased to 6.3% (previously 6.7%).
Meanwhile, Principality Building Society trimmed prices by up to 0.15% on buy-to-let products and as much as 0.23% on residential products.
A two-year fix at 75% LTV is priced at 5.04% with a fee of £895 and a fee-free alternative is also on the market at 5.53%. There is a five-year fix available with the mutual at a rate of 4.69% with a £1,395 fee included – the rate rises to 4.9% for the fee-free option.
The West Brom changes mortgage policy
Elsewhere –and for the first time – The West Brom raised its maximum mortgage term from 35 to 40 years for borrowers purchasing a capital and interest residential mortgage. The deals will be open to mortgage brokers and borrowers alike who wish to progress with them directly.
Richard Scott, head of intermediaries at the West Brom, said: “The rising cost of living, combined with rate increases, has made it increasingly difficult for many people to afford to own their own home.
“This is the first time we’ve extended our maximum term to 40 years, and we hope that by doing so, the prospect of home ownership becomes more realistic for many potential borrowers through more manageable, lower monthly payments.”
