{"id":18844,"date":"2018-07-12T15:30:19","date_gmt":"2018-07-12T14:30:19","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=18844"},"modified":"2023-10-09T16:11:32","modified_gmt":"2023-10-09T15:11:32","slug":"reduced-rates-and-new-mortgage-deals-as-lender-competition-increases","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/reduced-rates-and-new-mortgage-deals-as-lender-competition-increases\/","title":{"rendered":"Reduced rates and new mortgage deals as lender competition increases"},"content":{"rendered":"

Lenders are upping the ante in the competition to secure new borrowers with a raft of new product announcements this week.<\/strong><\/p>\n

Bucking the trend of keeping rates stable<\/a> and incentivising new customers with cashback and fee-free deals, Santander, Accord, Sainsbury\u2019s, Tesco and Halifax are among the lenders that have made changes to their rates and mortgage product range at the beginning of July.<\/p>\n

Santander has reduced rates across its product range by 0.3%. The bank\u2019s standard two-year mortgage<\/a> at 85% loan-to-value (LTV) is down to 1.74%, secured with a \u00a3999 product fee. The 70% LTV two-year rate has dropped to 1.69%, with a \u00a31,999 fee. Santander\u2019s key account exclusive range has also had a makeover, with a 0.05% decrease on their 60% LTV five-year rate (with \u00a31,499 fee) and a brand new five-year product for 75% LTV with no product fee.<\/p>\n

This week has also seen Accord Mortgages reduce its rate on two and five-year fixed 95% LTV mortgages by up to 0.40%. Customers can choose a five-year fixed rate at 3.8% with \u00a31,000 cashback<\/a>, a \u00a3495 product fee and free standard valuation. Alternatively, the same mortgage is available fixed for two years at 3.6%.<\/p>\n

Midlands building society Leek United is offering discounted rates<\/a> and zero fees on several mortgages (residential and buy-to-let<\/a>) along with six new two-year fixed products. Borrowers with a 60% LTV benefit from a low rate of 1.24%, while those needing a 95% LTV will receive 2.49% and \u00a3500 cashback. Landlords<\/a> with a 65% LTV can also choose between a rate of 1.79% and \u00a3500 cashback or 1.35% with a \u00a3995 fee.<\/p>\n

Supermarkets compete with high street lenders<\/h4>\n

Tesco Bank has made changes to its first-time buyer<\/a> mortgage range and reduced the cost of select fixed rate deals. First-time buyers can now access a five-year fixed deal at 3.78% with 95% LTV, down from 4%, with its three-year fixed rate at 3.69% and a two-year fix at 3.38%. For borrowers with a 90% LTV, Tesco is offering a fee-free five-year fixed rate at 2.57% for purchases or 2.59% for those remortgaging<\/a>. Customers in lower LTV brackets can also benefit from reduced rates on five and two-year fixed rates.<\/p>\n

Sainsbury\u2019s has reduced rates across residential and buy-to-let mortgages too. The supermarket bank has cut costs on select 95% LTV residential deals and introduced new remortgage deals from 60% LTV up to 80% LTV. Sainsbury\u2019s now offers a two-year fee-free fixed rate of 3.19% and a five-year rate of 3.29% at 95% LTV with \u00a3500 cashback. Remortgaging landlords<\/a> can also benefit from the reduced rate on its five-year fixed rate buy-to-let now at 2.56% at 75% LTV with \u00a3500 cashback.<\/p>\n

New market-leading ten-year mortgages<\/h4>\n

During a week of significant rate change announcements both Halifax and Lloyds have also launched brand new 10-year fixed rate<\/a> mortgages at 2.44% and 2.42% respectively. Both have been hailed as market-leading, beaten to the top spot only by Coventry Building Society whose ten-year fixed deal is slightly lower at 2.39%. Decade-long mortgages tap into borrowers seeking long-term security<\/a>, meaning they can rest assured that their monthly repayments will not increase until at least 2028.<\/p>\n

At least for the immediate future, competition between lenders looks set to continue as they battle for new borrowers to revitalise their mortgage books. While there are plenty of good low-rate deals with impressive incentive packages advertised, the onus remains on the borrower to seek out and research the deal that best suits them.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lenders are upping the ante in the competition to secure new borrowers with a raft of new product announcements this week. Bucking the trend of keeping rates stable and incentivising new customers with cashback and fee-free deals, Santander, Accord, Sainsbury\u2019s, Tesco and Halifax are among the lenders that have made changes to their rates and… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":15281,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[341],"class_list":["post-18844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-mortgages-money","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/18844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=18844"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/18844\/revisions"}],"predecessor-version":[{"id":6097315,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/18844\/revisions\/6097315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/15281"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=18844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=18844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=18844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}