Despite the Bank of England raising the country’s base rate to 4.25% at the end of March 2023, it seems that this hasn’t really deterred UK mortgage lenders from continuing with rate reductions. Mortgage rates sky-rocketed at the end of 2022 as the Bank of England initially raised their base rate in reaction to the badly thought out mini-budget. A lot of uncertainty fell on the mortgage market as borrowers and brokers were in the dark about which way interest rates would go. However, thankfully they did start to come back down and despite the base rate still increasing month on month, it seems that lenders have put their worries to rest and have finally regained their appetite for lending.
More Rate Reductions From Coventry Building Society
One of the lenders continuing with reducing rates despite the base rate hike is Coventry Building Society. Over the last few months we have reported on several rate reductions from Coventry and it doesn’t look like they are anywhere near done. In a message to brokers this morning, Coventry announced the following changes to their product offering.
Coventry have announced that they will be reducing selected 2 – 3 year fixed rates by up to 0.30%. Some of the highlights of the new product range are:
- Residential 2-year fixed rate of 4.21%, at 65% LTV and a £999 product fee, £350 cashback or RMTS for remortgage.
- Residential 3-year fixed rate of 4.18%, at 75% LTV and a £999 product fee, £350 cashback or RMTS for remortgage.
Other Lenders Reducing Rates
Barclays Bank have also announced today that they will be making rate reductions to their products. The details that they have forwarded to Oportfolio mortgages today are:
- Reducing a selection of our existing 2 and 5 year fixed rate purchase and remortgage products, by as much as 0.20%
- Reducing a selection of our existing larger loan 2 and 5 year fixed rate purchase and remortgage products, by as much as 1.29%
- Reducing a selection of our existing fixed rate products, by as much as 1.00%, across our residential Reward range – available for further borrowing and product transfers
Product change highlights
- 2 year Fixed £999 product fee, 75% LTV, Min loan £5k, Max loan £2m will be reducing from 4.32% to 4.15%
- 5 year Fixed £1999 product fee, 60% LTV, Min loan £2m, Max loan £10m will be reducing from 5.59% to 4.30%
- 5 year Reward Fixed £999 product fee, 60% LTV, Min loan £5k, Max loan £2m will be reducing from 4.00% to 3.84%
Speak To A Mortgage Advisor About Rate Reductions
Hearing the recent news of rate reductions, senior mortgage and protection advisor at Oportfolio Jade Pinkerton said, “It does seem like a lovely sign and will give buyers some confidence that rates are settling. The base rate rises may actually be working and stabilising inflation. Allowing the rates to come down.”
If these rate reductions are making you curious about the type of deal that you could possibly secure through Oportfolio, please give our friendly and helpful team a call today to see how we can help.