In a period that is quickly becoming known as the 2023 lender bidding wars, mortgage lenders are competing with each other on a daily basis to try and secure mortgage business, after a slump at the end of 2022. Lenders are competing with each other by dropping mortgage interest rates like they are going out of fashion. The average mortgage rate is still at around 4.5 to 5% but there are plenty of lenders with rates below this and we predict we could start to see some sub 4% rates entering the market soon. In communications to brokers over the last couple of days, we have been notified that Santander mortgage rates and Coventry rates are coming down too.
Santander Mortgage Rates
Yesterday, Santander announced that they would be launching some exclusive competitive rates today. An already very well known and popular lender, even Santander must be feeling the competitive buzz because these new rates and products are very attractive:
Residential Purchase Only
- 60% LTV, 5-year fixed rate at 4.19% with a £1,499 fee
- 85% LTV, 5-year fixed rate 4.45% with a £1,499 fee
Buy-to-let Purchase Only
- 75% LTV, 5-year fixed rate at 4.99% with a £1,999 fee
The introduction of these rates means that for the first time since lenders increased all their rates post-mini budget announcement in September 2022, residential purchasers getting a mortgage through Santander can benefit from rates below 4.5%. And who knows, perhaps the next rate announcement will see rates of 4% or below.
Coventry Building Society Mortgage Rates
Coventry building society are not the first lender you think of when getting a mortgage, right? Although a high-street building society, people tend to favour the big banks like Halifax, Natwest, Santander etc…and this is mainly because of the rates that smaller lenders like Coventry offer being higher in general. However, as all lenders have put their rates up, the gap between lenders like Coventry and lenders like Santander has been growing smaller, in terms of rates.
Wanting to get in on the lender bidding wars too, Coventry have announced that reducing all 5 year fixed 90-95% rates for first-time buyers, purchase and existing clients and 90% LTV for remortgage. Something that Santander hasn’t even addressed yet. This is great news for first-time buyers as it shows that lenders are starting to regain their appetite for first-time buyer lending and their confidence in borrowers.
The highlights of the new products are:
- First-time buyer 2-year fixed, 90% LTV, 5.50% with £0 fee. Available only to FTBs, £500 cashback available.
- 5-year fixed rate product, 90% LTV, 4.81% with £999 fee. Available to anyone including FTBs and remortgagers.
Although not incredibly competitive rates, we are definitively happy to see that Coventry are considering higher LTVs and first-time buyer mortgages again at lower rates. To put these rates into perspective, the lowest 90% mortgage that Santander currently offer is 4.94% and the highest is 5.09% for a 5-year fixed loan.
Need To Speak To A Mortgage Advisor?
At Oportfolio Mortgages, we are whole of market lenders. This means that we have access to over 90 different mortgage lenders and thousands of mortgage rates. This allows us to help you find the best mortgage lender and best rate for your circumstances. Want to see how we can help? Give our team a call today for a free initial mortgage chat. We’re here to help.