Lenders respond differently to Bank of England holding rates steady
Nationwide Building Society has reduced the cost of select fixed rate mortgages by up to 0.18 percentage points, while other prominent lenders have raised their rates.
Nationwide’s adjustments affect a wide range of products, including options for first-time buyers, remortgages, and product transfers for existing customers. The lender’s two-year fixed rate for home purchases now stands at 4.09% with a £999 fee for borrowers with a 25% deposit. Its lowest product transfer rate is a two-year fix at 3.8% with a £1,499 fee for loans of £300,000 or more at 60% LTV. The new rates are effective from 19 September.
The building society’s rate reductions also include a three-year fixed rate for first-time buyers at 85% LTV, now 4.34%, and a three-year deal at 95% LTV with no fee, now 5.21%. The lowest overall rate is the two-year fix at 60% LTV with a £1,499 fee, now 3.80%.
Meanwhile, Santander has increased select fixed rate mortgages for both residential and buy-to-let customers by up to 0.1 percentage points. This marks Santander’s second rate rise this month.
The changes come after the Bank of England’s Monetary Policy Committee left the base rate unchanged at 4%, following inflation data showing annual inflation at 3.8% in August, still above the Bank’s 2% target.
Elsewhere, TSB has raised select fixed rates by up to 0.15 percentage points, affecting home purchase and shared ownership products at higher loan-to-value ratios, including 90% and 95% LTV.
Accord, the intermediary lending subsidiary of Yorkshire Building Society, has also increased the cost of certain buy-to-let tracker mortgages for new customers. Its two-year tracker at 75% LTV now starts at 4.57% with a £995 fee.
In contrast, The Mortgage Works, Nationwide’s buy-to-let lending arm, has reduced select fixed rates by up to 0.15 percentage points. The lender now offers a two-year fixed rate for standard buy-to-let at 2.74% with a 3% fee for borrowers with a 35% deposit (65% LTV), and a two-year fix for limited company buy-to-let at 3.87% with a 3% fee (75% LTV).
Co-operative Bank for Intermediaries, owned by Coventry Building Society, has made mixed changes, lowering some residential and buy-to-let rates while increasing selected residential purchase rates at lower LTVs.
The Mortgage Lender has also reduced rates in its residential and buy-to-let ranges by up to 0.25 percentage points. Its five-year fixed rates for standard buy-to-let borrowing now start from 4.71% with a 3% fee (75% LTV).
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