West Bromwich Building Society is reducing rates on its five-year fixed-rate mortgages by up to 0.55 per cent.
The newly priced range, which was available from 15 July, starts from 2.09 per cent for new purchasers with a deposit of 35 per cent. This would be fixed until 30 November 2021.
Remortgage customers can access the same rate, also at a loan-to-value ratio of 65 per cent.
However, the biggest rate reduction in the range is at 85 per cent LTV, which has dropped from 3.14 to 2.59 per cent.
Borrowers with a smaller deposit, including first-time buyers, are being offered a sub-3 per cent rate for the first time by the society – 2.89 per cent at 90 per cent LTV, repriced from 3.39 per cent.
Incentives across the range include no completion fees and a free first standard valuation. All products for new purchasers have a £199 booking fee, but this does not apply for remortgage customers. Those remortgaging also benefit from ‘fees assisted legals’.
Lower deposit borrowers – those at 80, 85 and 90 per cent LTV – qualify for a cashback payment of £500 if they are purchasing or moving home.
David Taylor, the West Brom’s head of products, said: “There is a lot of uncertainty at the moment regarding base rate, which direction it is going to move in and how quickly changes could happen.
“Fixing your mortgage rate is the only way of guaranteeing your monthly repayments for a set period of time, which makes it easier for homeowners to budget effectively and plan ahead.”
Each mortgage reverts to the West Brom’s standard variable rate at the end of the five-year fixed-rate term, which is currently 3.99 per cent.
Danny Matthews, broker and founder of Advisers Edge Media, commented: “Maybe it thought the BoE base rate was going down and was planning on capitalising on good news. I imagine it will be withdrawn very soon.”
peter.walker@ft.com
