Lenders ramp up competition with mortgage rate reductions

19th September 2014

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Lenders have increased competition in the mortgage market further, with both Lloyds and Leeds Building Society reducing rates across their ranges.

Lloyds has reduced selected five-year mortgage rates by up to 0.31%, three-year rates by 0.15% and two-year rates by 0.1%, benefitting homemovers, first-time buyers and remortgage customers.

Its five-year rate for 75% to 80% loan-to-value (LTV) mortgages has reduced to 3.98% with a fee of £995, or 4.18% with no fee. For those wanting to borrow 60% to 75% LTV the rate has reduced to 3.78% with a £995 fee or 3.98% without a fee.

Its two year mortgages rates at 75% LTV reduced to 2.49% with a £995 fee or 2.94% without a fee.

Marc Page, mortgages director at Lloyds Bank said: ‘These significant rate cuts to our mortgage range should provide real support to customers, whether they’re first-time buyers, homemovers or those looking to remortgage.’

The buy-to-let mortgage space is also becoming more competitive, with Leeds Building Society reducing its rates by up to 0.4% and introducing new five-year fixed rate deals.

For those wanting to borrow at an LTV of 60% for three years the rate has reduced from 3.49% to 3.09%, and for those borrowing at 70% LTV it has reduced from 3.69% to 3.39%.

There are also reductions in three-year fees assisted deal: 60% LTV rates have been reduced from 3.69% to 3.39% and 70% LTV reduced to 3.59% from 3.99%.

The new five year deals are offering rates of 3.69% and 3.99% for 60% LTV and 70% LTV respectively.

‘These latest buy-to-let mortgages are extremely competitive and come with a range of benefits, including a free standard valuation and fees assisted legal services,’ said Martin Richardson, Leeds Building Society general manager of business development.

‘We’ve refreshed our range following broker and customer feedback and the fees assisted versions of the products offer additional choice, depending on the borrower’s individual needs, including those homeowners who are looking to remortgage.’

 

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