Principality Building Society is set to adjust its mortgage rates, effective tomorrow, impacting various product ranges.
- The adjustments include a mix of rate decreases, new product launches, and increases across residential, new-build, and buy-to-let products.
- Borrowers under the Help to Buy Wales scheme will see a slight reduction in the 5-year fixed rate at 75% LTV.
- New 2-year fixed-rate residential mortgage products at 65% and 75% LTV are being introduced, each carrying a £1,499 product fee.
- Most changes involve modest rate increases, particularly affecting products across different LTV tiers.
Principality Building Society is implementing a series of adjustments to its mortgage offerings, which will take effect from tomorrow. The changes encompass a mixture of rate reductions and increases across various products, as well as the introduction of new mortgage options. Such adjustments are aimed at meeting the diverse needs of borrowers in today’s market.
For individuals participating in the Help to Buy Wales scheme, the 5-year fixed rate at a 75% loan-to-value (LTV) is set to decrease by 0.04%, providing a slight financial relief. Meanwhile, the society is enhancing its range by introducing new 2-year fixed-rate residential mortgages at 65% and 75% LTV. These new offerings carry a product fee of £1,499, which may attract borrowers looking for short-term fixed rates, particularly those with significant equity in their homes.
Despite some reductions, the predominant changes involve modest increases in rates. In the residential sector, fixed-rate products spanning 2-, 3-, and 5-year terms at 65%, 75%, and 80% LTV will see increments of up to 0.17%. Moreover, the 85% LTV products will rise by up to 0.10% while 90% LTV alternatives will witness increases of up to 0.14%. These higher rates will also affect options with cashback features, which will increase by up to 0.16% for 65%, 75%, and 80% LTV terms.
Changes extend beyond standard residential mortgages, affecting new-build and Shared Ownership purchases. For Shared Ownership, 2- and 5-year fixed-rate products at 95% LTV will increase by up to 0.11%, with standard 95% LTV products seeing a 0.08% increase.
Adjustments are also made in specialised products like Joint Borrower Sole Proprietor (JBSP) and buy-to-let (BTL) loans. Here, JBSP loans spanning 2- and 5-year fixed terms at 75%, 80%, 85%, and 90% LTV will experience increases up to 0.17%. Meanwhile, in the BTL category, 5-year fixed-rate mortgages at 60%, 70%, and 75% LTV are set to increase by up to 0.18%, indicating a marginal rise for landlords and property investors seeking fixed terms.
Lastly, there are moderate changes to holiday let mortgages. The 2- and 5-year fixed-rate options at 60% LTV will see upward adjustments of up to 0.10%, and the 5-year fixed-rate at 75% LTV will rise by 0.11%. These adjustments illustrate the society’s strategy to balance rate competitiveness with market demand.
These adjustments highlight Principality Building Society’s effort to respond to market conditions and borrower needs through nuanced mortgage rate changes.
