Coventry Building Society and Atom Bank have both announced reductions in their mortgage rates, impacting a range of borrowers from first-time buyers to landlords. These changes are significant as they enhance affordability for potential homeowners and investors in the current market.
TL;DR: Coventry Building Society has cut rates by up to 0.2%, with a two-year fix at 5.17% for first-time buyers; Atom Bank has also reduced rates, with prime deals starting at 5.29%, benefiting borrowers across the credit spectrum.
What mortgage rate changes were announced?
Coventry Building Society has implemented reductions of up to 0.2% across its fixed-rate mortgage offerings. Notably, the two-year fixed mortgage at 90% loan-to-value (LTV) for first-time buyers is now available at 5.17%, accompanied by no fees and a £500 cashback incentive. Additionally, a five-year fixed rate for limited company buy-to-let remortgages is now priced at 5.1% at 75% LTV, with a £1,999 fee.
How is Atom Bank adjusting its mortgage rates?
Atom Bank has also announced cuts to its mortgage rates, reducing pricing on its prime deals by 0.2% and near-prime rates by 0.1%. The new starting rate for prime mortgages is now 5.29% with a £900 fee, while near-prime rates also start at 5.29% with a £1,995 fee. This adjustment allows Atom Bank to cater to a broader range of borrowers, particularly first-time buyers.
What does this mean for borrowers and landlords?
The reductions in mortgage rates from both lenders provide more competitive options for borrowers, especially first-time buyers who may find it easier to enter the property market. For landlords, the improved rates on buy-to-let products could facilitate refinancing opportunities, potentially leading to better cash flow and investment returns.
Frequently asked questions
What types of mortgages are affected by these rate cuts?
The rate cuts apply to fixed-rate mortgages, including options for first-time buyers and limited company buy-to-let remortgages.
How can I compare these new mortgage rates?
Borrowers can compare the latest mortgage rates through platforms that provide mortgage rate comparisons, helping them find the best deals available.