Find out which lenders are now offering lower rates and higher loan-to-value options
Several mortgage lenders across the UK have unveiled rate cuts and product enhancements aimed at boosting affordability, supporting homebuyers, and increasing market competitiveness.
Gen H has reduced the interest rate on its New Build Boost product from 6.29% to 5.95%. The scheme, launched in March as a private sector alternative to Help to Buy, combines a 5% deposit with an 80% mortgage and a 15% interest-free equity loan. Gen H reported that 94% of applicants so far have been first-time buyers, with the average monthly payment for a £300,000 property now £1,431 — less than comparable 95% LTV products.
Later life lender LiveMore has also reduced rates across its Standard and Retirement Interest-Only (RIO) mortgage ranges. Cuts of up to 0.49% on RIO and 0.43% on Standard products bring starting rates to 5.48%.
Fintech lender LendInvest Mortgages has made rate reductions across its residential range, lowering two-year fixed rates by 15 basis points (bps) up to 75% LTV and by 10bps above that threshold. Five-year fixes have dropped by 5bps, with the lowest rates now at 5.14%. The lender is also offering cashback incentives of up to £400.
Shariah-compliant Gatehouse Bank has lowered the rental rate on its two-year fixed Buy-to-Let Purchase Plans by 0.12% for UK expats and international residents. The change applies to standard and green products, including finance for HMOs and MUFBs. The bank accepts applications from individuals and SPV limited companies.
Meanwhile, Newcastle for Intermediaries has raised its maximum LTV on new build flats to 90%, allowing borrowers to buy with just a 10% deposit. This follows an earlier move to increase LTVs on new build houses to 95%. The lender has also recently lowered its residential stress rate on mortgages of up to five years. “The decision will provide further support for the housebuilding sector by broadening access to the new build home market,” the society stated.
Similarly, bridging lender Funding 365 has enhanced its Light Refurbishment product, raising the maximum gross LTV to 85%. The product now funds up to 100% of refurbishment costs (in arrears), capped at 80% net loan-to-cost, with rates starting from 0.93% per month. For lower leverage projects up to 75% LTV, rates begin at 0.69% per month, and loans of up to £5 million are available, including for semi-commercial properties.
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