Coventry Building Society and Rely have announced significant reductions in mortgage rates, impacting both residential and buy-to-let (BTL) sectors. These changes provide new opportunities for borrowers and landlords, particularly first-time buyers and limited company landlords.
What are the new mortgage rates?
Coventry Building Society has implemented cuts of up to 0.15% across its residential mortgage offerings. A standout product is a two-year fixed deal at 90% loan to value (LTV) available for first-time buyers, now priced at 4.98%. Additionally, the mutual offers 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, with a rate of 5.41%.
How does Rely’s rate reduction affect landlords?
Rely, a specialist BTL lender, has reduced its rates by up to 0.25%. This includes a one-year fixed rate at 75% LTV with a 3% fee, now priced at 3.83%. For those looking for longer-term options, Rely also offers a two-year fix at 55% LTV with a 5% fee, priced at 3.51%, and a five-year equivalent at 4.68%. These reductions provide landlords with more competitive financing options.
What this means for borrowers and landlords
These reductions in mortgage rates are particularly beneficial for first-time buyers and landlords looking to remortgage. The competitive rates from Coventry and Rely mean that borrowers can potentially save on monthly repayments, making homeownership and investment more accessible. Brokers should take note of these changes to better assist their clients in navigating the current mortgage market.
Frequently asked questions
What should first-time buyers consider with these new rates?
First-time buyers should evaluate the new fixed-rate options from Coventry Building Society, particularly the 4.98% rate at 90% LTV, which includes cashback incentives.
How can landlords benefit from Rely’s reduced rates?
Landlords can take advantage of Rely’s reduced BTL rates, especially the competitive one-year and two-year fixed options, to lower their borrowing costs and improve cash flow.