Coventry Building Society and Atom Bank have announced reductions in their mortgage rates, providing more competitive options for borrowers. These changes are significant as they cater to a range of clients, from first-time buyers to limited company landlords, potentially easing the financial burden for many.
What are the new mortgage rates from Coventry BS?
Coventry Building Society has reduced its mortgage rates by up to 0.2%. Notably, its two-year fixed mortgage at 90% loan-to-value (LTV) with no fee and a £500 cashback offer for first-time buyers is now priced at 5.17%. Additionally, for limited company buy-to-let (BTL) remortgages, a five-year fixed rate is available at 5.1% for properties with an Energy Performance Certificate (EPC) rating of A to C, accompanied by a £1,999 fee.
How has Atom Bank adjusted its mortgage offerings?
Atom Bank has also made moves to lower its mortgage rates across both prime and near-prime ranges. The bank has reduced its prime mortgage rates by 0.2%, now starting at 5.29% with a £900 fee. Meanwhile, near-prime rates have been lowered by 0.1%, also starting at 5.29%, but with a fee of £1,995. This adjustment allows Atom Bank to cater to a broader range of borrowers, including those with varying credit statuses.
What does this mean for borrowers and landlords?
These rate reductions provide first-time buyers and landlords with more affordable mortgage options, potentially increasing their purchasing power. For brokers, these competitive rates enhance the ability to support clients in securing financing. The availability of lending at up to 95% LTV from Atom Bank further opens opportunities for first-time buyers who may have struggled to enter the market.
Frequently asked questions
What should first-time buyers consider with these rate changes?
First-time buyers should assess their eligibility for the new lower rates, particularly the 90% LTV options, which can make homeownership more accessible.
How do these changes impact landlords?
Landlords can benefit from reduced rates on buy-to-let mortgages, particularly those with properties meeting energy efficiency standards, allowing for better cash flow management.