Coventry Building Society and Rely have announced reductions in their mortgage rates, impacting both residential and buy-to-let (BTL) borrowers. These changes, with cuts of up to 0.15% for residential mortgages and up to 0.25% for BTL loans, provide new opportunities for borrowers seeking competitive rates.
What are the recent changes in mortgage rates?
Coventry Building Society has introduced a two-year fixed deal at 90% loan to value (LTV) with a £999 fee and £500 cashback for first-time buyers, now priced at 4.98%. Additionally, they offer a fee-free five-year fix at 75% LTV for limited company BTL remortgages on properties with an Energy Performance Certificate (EPC) rating of A to C, set at a rate of 5.41%.
How do these mortgage rate changes affect landlords?
For landlords, Rely, a specialist BTL lender under the OSB Group, has reduced rates significantly. Their one-year fixed mortgage at 75% LTV now stands at 3.83% with a 3% fee, while the two-year fixed option at 55% LTV is priced at 3.51% with a 5% fee. The five-year fixed equivalent is now available at 4.68%. These reductions make it more affordable for landlords to finance their properties, potentially improving cash flow.
What this means for first-time buyers seeking mortgage rates
First-time buyers can particularly benefit from Coventry’s new offerings. The 4.98% rate on the two-year fixed deal with cashback is competitive, making it easier for new entrants to the property market. The reduced fees and cashback incentives may also alleviate some of the financial burdens associated with purchasing a home.
How can I compare the latest mortgage rates?
To find the best mortgage rates, consider using online tools for mortgage rate comparison, consulting with mortgage brokers, and reviewing offers from various lenders to ensure you secure the most advantageous deal.
Frequently asked questions
What should I consider before applying for a mortgage?
Before applying, assess your financial situation, including your credit score, income stability, and the overall cost of the mortgage, including fees and interest rates.
How can I compare different mortgage rates effectively?
You can compare mortgage rates by using online comparison tools, consulting with mortgage brokers, and reviewing offers from various lenders to find the best deal for your needs.