TL;DR
- •Leeds Building Society and Coventry for Intermediaries have cut their mortgage rates by up to 0.35%.
- •This significant decrease will impact both new and existing borrowers..
- •This significant decrease, which includes high loan-to-value deals with no fees, will have a tangible impact on both new and existing borrowers.
As of May 2026, Leeds Building Society and Coventry for Intermediaries have reduced their mortgage rates by up to 0.35%. This significant decrease, which includes high loan-to-value deals with no fees, will have a tangible impact on both new and existing borrowers. Meanwhile, Monmouthshire Building Society has implemented the Phoebus platform to enhance mortgage account servicing.
Impact of Reduced Mortgage Rates
Scenario: First-Time Buyer at 90% LTV
A first-time buyer taking out a £200,000 repayment mortgage at 90% LTV from Leeds BS will see their monthly payments decrease from £1,201 to £1,163 due to the rate cut. This results in a saving of £38 per month, or £456 annually.
Scenario: Existing Borrower Remortgaging at 75% LTV
An existing borrower with Coventry, remortgaging a £250,000 property at 75% LTV, will see their monthly payments drop from £1,432 to £1,389. This equates to a £43 monthly saving, or £516 over the course of a year.
Scenario: Landlord with Interest-Only Mortgage
A landlord with a £200,000 interest-only buy-to-let mortgage with Coventry will see their monthly cost drop from £625 to £583. This equates to a saving of £42 per month or £504 per year, improving the rental yield.
Market Context
The recent reductions in mortgage rates come amidst a period of fluctuating interest rates. The current Bank of England base rate stands at 3.75%, having risen from 3.5% six months ago and 3.25% a year ago. Despite the rising base rate, major lenders including Barclays, HSBC, Lloyds Bank, NatWest, and Santander have recently cut some fixed rates. However, the overall outlook remains unclear, with the potential for further changes in the current mortgage rates.
Monmouthshire BS and Phoebus
Monmouthshire Building Society’s move to implement the Phoebus platform is expected to improve efficiency through automation. The platform will support a full range of products, including residential and buy-to-let, and will onboard new loans. The society plans to migrate existing mortgage and savings accounts onto the system in a later phase. This is a significant step in the digital transformation of the mortgage industry, which aims to enhance the customer experience and streamline operations.
Frequently Asked Questions
How much can I save with the new Leeds BS and Coventry mortgage rates?
For a £200,000 mortgage at 90% LTV, the rate cut could reduce your monthly payments by £38, saving you £456 per year. For a £250,000 mortgage at 75% LTV, you could save £43 per month, or £516 annually. A landlord with a £200,000 interest-only mortgage could save £42 per month, or £504 per year.
What is the current Bank of England base rate?
The current Bank of England base rate is 3.75% as of April 2026.
What is the Phoebus platform?
The Phoebus platform is a mortgage account servicing system that enhances efficiency through automation. It supports a full range of products, including residential and buy-to-let.
What is the overall outlook for mortgage rates?
While some major lenders have recently cut fixed rates, the overall outlook for mortgage rates remains uncertain due to fluctuating interest rates. Borrowers should monitor the mortgage rate comparison for potential changes.
About David Sampson
David Sampson writes about the UK mortgage market for Mortgage118, covering specialist lending, market trends, and practical advice for borrowers. All content is reviewed for accuracy against FCA guidelines and current market data.