Coventry Building Society and Atom Bank have both announced reductions in their mortgage rates, enhancing options for borrowers and investors alike. The changes come as lenders respond to market conditions, potentially benefiting first-time buyers and limited company landlords.
What are the new mortgage rates from Coventry Building Society?
Coventry Building Society has made notable reductions across its fixed-rate offerings. The two-year fixed mortgage at 90% loan-to-value (LTV) now stands at 5.17%, available with no fee and a £500 cashback for first-time buyers. Additionally, a five-year fixed remortgage for limited company buy-to-let properties with an Energy Performance Certificate (EPC) rating of A to C is priced at 5.1% at 75% LTV, accompanied by a £1,999 fee.
How has Atom Bank adjusted its mortgage rates?
Atom Bank has also lowered its mortgage rates, with prime deals seeing a reduction of 0.2%. The starting rate for prime mortgages is now 5.29%, with a £900 fee. Near-prime rates have been cut by 0.1%, also starting at 5.29% but with a £1,995 fee. This adjustment allows Atom Bank to cater to a broader spectrum of borrowers, including those with varying credit histories.
What does this mean for first-time buyers and landlords?
The recent rate cuts are particularly significant for first-time buyers and limited company landlords. First-time buyers can benefit from more competitive rates and cashback options, making homeownership more accessible. Meanwhile, landlords looking to remortgage can take advantage of favorable terms for properties with good EPC ratings, enhancing their investment potential.
Frequently asked questions
What factors influence mortgage rates?
Mortgage rates are influenced by various factors, including the Bank of England’s base rate, lender competition, and economic conditions. Lenders adjust rates based on their funding costs and risk assessments.
How can I compare current mortgage rates?
To compare current mortgage rates, borrowers can use online comparison tools or consult mortgage brokers who can provide tailored advice based on individual circumstances.