Newbury Building Society cuts mortgage rates
Newbury Building Society has announced it will chop selected variable rates and hold its Standard Variable Rate (SVR), despite the Bank of England hiking the Base Rate earlier this month.
The lender has slashed rates by up to 0.55% across a range of three-year and five-year discount products.
Under the changes, Newbury will offer a three-year discount at 85% loan to value (LTV) at a current rate of 2.19% and a five-year discount at 75% LTV at a rate of 1.74%.
Rates have also been cut on discounted Help To Buy, Home Starter and self-build products.
The society confirmed its SVR will remain at 4.20%.
Base Rate rise prompts changes
Monetary policymakers raised interest rates in November for the first time in a decade – taking the Base Rate to 0.5%.
The moves sparked a rush by lenders to push up SVRs and variable rate mortgage deals.
HSBC yesterday confirmed its SVR would rise by 0.25%, following in the steps of rivals.
Phillippa Cardno, operations and sales director at Newbury Building Society, said: “The Bank of England Base Rate increase meant between four and five million UK households on standard variable rate mortgage faced a monthly repayment increase.
“Although the Bank Base Rate has not changed since September last year when it was reduced from 0.5% to 0.25%, the price of mortgage business products across the industry has continued to edge downwards in the last 15 months for borrowers.
“As a result, we are taking the opportunity by not increasing the SVR to increase demand for our products to both new and existing members.”