Selected rate changes from Leeds BS and Principality Mortgage Finance Gazette

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Leeds Building Society is reducing rates across its residential and first time buyer mortgage ranges by up to 35bps from 29 August and introducing new products for first time buyers at both 90 and 95% LTV.

These products are the latest in a series of updates the society has made to support first-time buyers, including reducing the household income needed to borrow more than 4.5 times annual income from £40,000 to £30,000.

The lowered minimum income level of £30,000 applies to all the lender’s residential first-time buyer products, including 5% deposit mortgages. It also applies to its Income Plus range, which is designed to support first time buyers by allowing up to 5.5 times the applicants annual income.

Product highlights include Income Plus five -year fixed rate of 4.94% with £999 fee payable upon completion, available up to 95% LTV, with free standard valuation and tapered early repayment charges.

A first-time buyer two-year fixed rate of 3.99%, representing a reduction of 35bps, with £1,499 fee payable upon completion and available up to 80% LTV.

Also, a first-time buyer two-year fixed rate of 4.89% – representing a cut of 9bps, with a £0 fee payable upon completion and available up to 95% LTV.

And a residential two-year fixed rate of 4.05% – a rate reduction of 10bps, with 0% fee payable upon completion and available up to 65% LTV.

Meanwhile Principality for Intermediaries has announced both rate decrease and increases on selected products.

Rate decreases apply on some residential products, for instance two-year fixed 65% LTV products have been reduced by up to 0.20%;  the lender’s five-year fixed 65% LTV product (with product fee) has been reduced by 0.19%; its two-year fixed 75% LTV products have been cut by up to 0.20%; and its five-year fixed 75% LTV product (with product fee) cut by 0.11%

For residential (with cashback), the lender’s two-year fixed 65% LTV product is being cut by 0.16%; its two-year fixed 75% LTV product by up to  0.17%; and its five-year fixed 75% LTV product cut by 0.10%

Rate increases on selected residential offers, see a three-year fixed 75% LTV product rise by 0.04%; and a five-year fixed 75% LTV product (without product fee) rise by 0.04%

Home loan fixed-rate prices edged higher this week despite the Bank of England cutting the base rate this month, data from Moneyfacts shows. 

The average mortgage rate has risen by a single basis point to 5.01%, says the data group.