Family Building Society (Family BS) has announced sweeping reductions in their mortgage rates, impacting both residential and buy-to-let customers.
Family BS has decreased the rates for its fixed-rate mortgages, affecting both two-year and five-year plans. This change spans across both interest-only and capital repayment options. Specifically:
- Two-Year Owner Occupier Products: Rates have been reduced by a substantial 50 basis points (bps), meaning a significant decrease in the interest rates for these mortgage types.
- Five-Year Products: These have seen a 40bps reduction, offering a more affordable long-term option for homeowners.
The new rates are as follows:
- Repayment Two-Year Fixed Rates: Now starting from 5.74%.
- Five-Year Fixed Rates: Now starting from 5.14%.
- Interest-Only Two-Year Rates: Now beginning at 6.39%.
- Five-Year Interest-Only Rates: Starting from 5.79%.
Changes in Buy-to-Let Mortgages
The buy-to-let sector sees even more substantial cuts:
- Five-Year Fixed Rates: These rates have been slashed by 55bps, now starting from a more accessible 5.59%.
Moreover, Family BS introduces a new two-year fixed rate specifically tailored for UK landlords, limited company special purpose vehicles, and expats. These new rates start from 6.09%.
Withdrawal of Variable Rates
In conjunction with the rate cuts, Family BS is also withdrawing all discounted variable rates, except for those in the offset, JBSP, and expat products categories. This move signifies a shift in focus towards fixed-rate offerings, providing more predictability and stability for borrowers.
Comments from the Inside
Keith Barber, the Director of Business Development at Family BS, sheds light on the rationale behind these changes: “These significant reductions across our owner occupier and buy-to-let range will go some way to help older borrowers and landlords struggling with affordability.” He emphasises that the decision aims to support those in need of more flexible and sensible underwriting, a hallmark of Family BS’s approach.