Summary:
Multiple lenders, including Afin Bank, SDKA, and Principality, have adjusted mortgage rates, with some reductions as steep as 75 basis points (bps). Afin Bank introduced competitive rates for high-net-worth (HNW) clients and foreign nationals, while Principality revised rates for holiday lets and new builds. SDKA cut bridging loan rates, citing favorable liquidity. These changes reflect shifting market conditions and strategic pricing adjustments to attract borrowers.
What This Means for You:
- Lower Rates for HNW Borrowers: Afin Bank’s 75bps reduction on two-year fixed rates (now from 5.59%) benefits professionals and foreign nationals.
- Opportunity for Landlords: SDKA’s 50bps cut on bridging loans (to 0.84%/month) supports buy-to-let and HMO investors.
- Holiday Let Discounts: Principality’s 40bps drop on holiday let mortgages may appeal to property investors.
- Monitor Mixed Adjustments: Some rates increased slightly (e.g., Principality’s residential loans by 1–4bps), so compare deals carefully.
Original Post:
Afin Bank has lowered mortgage rates on selected deals by up to 75 basis points, bridging lender SDKA by up to 50 bps and Principality by up to 40 bps while increasing others.
At Afin Bank, which services foreign nationals as well as UK borrowers, its professionals range potentially allows up to 6.5 times income.
In this range, two-year fixed rates have been reduced by up to 75bps and now start from 5.59% with a £1,495 fee.
All two and five-year residential products carry the same fee, while buy-to-let deals come with a 2.5% fee.
The lender has also launched five-year fixed rates in its residential, buy-to-let, professional and high net worth ranges.
For owner-occupiers, five-year fixed rates start from 5.89% and go up to a maximum of 90% LTV.
For landlords, five-year fixes are from 5.69% and go up to a maximum of 75% LTV.
Principality has announced a host of price changes taking effect tomorrow, with movements both upwards and downwards.
The steepest reductions are to deals in its holiday let range.
A two-year fix at 75% LTV with no fee is dropping by 40bps and its five-year equivalent by 20bps.
New build deals are being lowered by up to 10bps and a host of other rates by lesser amounts.
Small increases of between 1 and 4 bps are taking place across its residential range including to some Joint Borrower Sole Proprietor (JBSP) deals.
Bridging lender SDKA is lowering its Bridge 75 rate by 50bps to 0.84% per month for loans over £250,000 and up to 75% LTV.
The products are designed for borrowers investing in buy-to-lets, houses in multiple occupation (HMOs) and buildings requiring refurbishment with terms from three to 24 months.
SDKA managing director Kunal Mehta says: “The rate reduction has been made in response to market conditions and a strong liquidity position which is allowing us to support clients with competitive pricing.
“Thanks to the excellent relationship with our flexible funding partners we have the ability to move our rates as required.”
Extra Information:
- Bank of England Interest Rate Trends: Context for broader rate movements influencing lender decisions.
- UK Government Help-to-Buy Scheme: Relevant for borrowers comparing new-build mortgage options.
People Also Ask About:
- How do basis point (bps) changes affect my mortgage? A 1bps reduction equals 0.01% less interest, so 75bps cuts save £750 annually per £100,000 borrowed.
- What is a Joint Borrower Sole Proprietor (JBSP) mortgage? A product allowing multiple incomes to qualify, but only one borrower owns the property.
- Are bridging loans risky? They’re short-term solutions (3–24 months) best for investors with clear exit strategies, like refurbishment resales.
- Why do lenders adjust rates asymmetrically? Market liquidity, competition, and risk appetite drive selective cuts (e.g., holiday lets) versus minor hikes.
Expert Opinion:
“These targeted reductions signal lenders’ focus on high-margin segments like HNW borrowers and niche markets (HMOs, holiday lets). However, mixed adjustments—some hikes alongside cuts—suggest caution amid economic uncertainty. Borrowers should lock in deals now but prepare for volatility.” — Financial Analyst, Mortgage Strategy
Key Terms:
- High-net-worth (HNW) mortgage rates
- Bridging loan rate reductions 2024
- Holiday let mortgage discounts
- Foreign national UK mortgage options
- Buy-to-let refurbishment financing
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