In a significant development for the mortgage market, leading lenders Virgin Money and Leeds Building Society have announced reductions in their mortgage rates, with some offerings now dipping below the 4% mark. These rate cuts signal a positive trend for both prospective homebuyers and those considering remortgaging.
Virgin Money's rate reductions
Virgin Money has emerged as the latest lender to introduce mortgage rates under 4%. The bank has lowered its purchase products with £300 cashback by up to 0.30%, bringing select rates below this critical threshold. Notable adjustments include:
Purchase with £300 Cashback:
65% Loan-to-Value (LTV) 5-Year Fixed Rate: Reduced by 0.21% to an attractive 3.99% with a £995 fee.
75% LTV 2-Year Fixed Rate: Reduced by 0.29% to 4.43% with a £995 fee.
Additionally, Virgin Money has slashed rates on its exclusive purchase products with £300 cashback by up to 0.15%. For instance, the 80% LTV two-year fee saver has been decreased by 0.15% to 4.93%.
The lender hasn't overlooked the remortgage sector either, implementing cuts on its exclusive remortgage products with both £995 fees and fee saver options:
Exclusive Remortgage with £995 Fee:
80% LTV 2-Year Fixed Rate: Reduced by 0.20% to 4.95%.
60% LTV 2-Year Fixed Rate: Reduced by 0.19% to 4.40%.
Exclusive Remortgage Fee Saver:
80% LTV 2-Year Fixed Rate: Reduced by 0.28% to 5.26%.
60% LTV 5-Year Fixed Rate: Reduced by 0.18% to 4.16%.
Leeds Building Society's competitive moves
Leeds Building Society has also announced reductions on selected residential and reach fixed-rate products by up to 0.30%. Existing customers of Leeds Building Society stand to benefit from reductions of up to 0.20% on selected residential fixed rates, making it a good time to reassess their mortgage options.
Enhancing its portfolio, the society has introduced £1,499 fee limited company buy-to-let (BTL) products, featuring:
Limited Company BTL Products:
2-Year 75% LTV Fixed Rate: Set at 5.79%.
5-Year 75% LTV Fixed Rate: Set at 5.39%.
What this means for borrowers
The downward trajectory of fixed mortgage rates is encouraging for both new buyers and current homeowners contemplating refinancing. With lenders like Virgin Money and Leeds Building Society offering competitive rates and attractive cashback options, borrowers have a broader spectrum of choices tailored to various financial situations.
However, as always, this requires careful consideration. Borrowers should assess their eligibility, LTV ratios, and long-term financial goals. It's also worth noting that some lenders allow borrowers to lock in rates three to six months in advance, providing a buffer against potential future rate hikes.
Seek Professional Guidance
An experienced mortgage advisor can discuss the options available to you, help you to understand the implications of fees and align your mortgage choice with your financial objectives.
At Your Mortgage Room, we're committed to guiding you through these developments, ensuring you can take advantage of advantageous rates and terms. Contact us today on 01273 039500 for a personalised consultation.
Sourced 13.08.24 (mortgagestrategy.co.uk)
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