Mortgage Rate Cuts from Suffolk and Market Harborough Building Societies

Suffolk Building Society has cut rates on its two-year fixed-rate mortgages by up to 0.30%, meaning lower monthly payments for borrowers. Market Harborough Building Society has also announced cuts of up to 0.20% on its residential and buy-to-let fixed rates.

What are the new rates?

Here are some examples of the new rates from Suffolk Building Society:

For homeowners taking out a mortgage to buy a home (known as a capital & interest mortgage):

80% Loan-to-Value (LTV): The rate has been cut by 0.30% to 4.99% (meaning you borrow 80% of the property value). The maximum loan size is £2 million.
90% LTV: The rate has dropped by 0.30% to 5.25%. The maximum loan is £500,000.
95% LTV: This rate has been reduced by 0.20% to 5.69%, with a maximum loan of £500,000.

For those with an interest-only mortgage:

80% LTV: The rate is now 5.29% (down 0.15%). The maximum loan is £750,000.

For holiday let mortgages:

80% LTV: The two-year fix is down by 0.11% to 5.69% with a maximum loan of £1 million.

At Market Harborough Building Society:

Residential mortgages: Rates now start from 5.59%.

Market Harborough has also increased the maximum loan size to £5 million on its short-term deals and the maximum LTV to 70%.

Why are rates being cut?

These cuts follow the Bank of England’s recent decision to cut the base rate, which is the interest rate that influences what banks charge borrowers.

Charlotte Grimshaw, Head of Intermediary Relations and Mortgage Sales at Suffolk Building Society, said there have been “lots of positive signals across the property market in recent weeks”.

She added: “We’re pleased to see confidence returning with would-be buyers and movers buoyed by reduced interest rates.”

Iain Smith, Head of Mortgage Distribution at Market Harborough Building Society, said: “We’re bringing down fixed rates on our standard term mortgages and are really excited about extending the loan size and LTV on our bridging finance to make it even more accessible.”

What does this mean for me?

Lower monthly payments: If you’re looking for a new mortgage deal, these rate cuts could save you money every month.
More choice: With more competitive deals available, you’ll have more options to choose from.
A boost for the housing market: Cheaper mortgages could encourage more people to buy and sell property.

It’s always a good idea to shop around and compare deals from different lenders to find the best one for you. Speaking to an independent mortgage broker is also a good way to get expert advice.