Suffolk Building Society has reduced its interest only residential products by up to 16 basis points.
Rates have been reduced on the society’s 80% loan-to-value (LTV) residential five-year interest only from 5.25% to 5.09% for 60 months.
In addition, the 80% residential two-year fixed interest only has been cut by 16bps to 4.99% until 31 August 2027.
And the 80% LTV residential two-year discount interest only has been lowered by 15bps to 4.85% for 24 months.
In addition, Suffolk has introduced a 90% LTV discount mortgage to help those with smaller deposits take advantage of the prospect of future Bank of England base rate drops.
The 90% residential mortgage is a two-year deal available for purchase or remortgage. It has a discount rate of 4.95% and a maximum loan amount of £650k.
Suffolk Building Society head of intermediaries Charlotte Grimshaw says: “With our changes to repayment vehicles, we decided to close the rate differential between our capital and interest, and our interest only products – giving people more choice.”
“This helps borrowers who are looking to borrow into retirement, people currently on interest only terms, or those looking to migrate over to interest only.”
