Mortgages  

Competition hots up for longer fixed rate deals

Keystone Buy to Let Mortgages and Coventry Building Society’s intermediary arm have refreshed their mortgage range in dual moves that introduce further competition into the market for longer-term fixes amid expectations that interest rates could be set to rise.

Keystone has reduced its fixed rate prices, two months after introducing its Classic and Premier ranges, including new five-year fixed rates from 5.04 per cent (5.4 per cent annual premium equivalent).

The lender is also offering three-year discounted tracker mortgages from 4.59 per cent (5.3 per cent APR).

Meanwhile, Coventry has announced the launch of new residential and BTL products including a 3.25 per cent five-year fix and new Flexx for Term options.

The new range includes:

• a 3.25 per cent fixed rate until 30 June 2019 at 65 per cent loan-to-value, £199 booking fee, £800 arrangement fee and early repayment charges payable to that date;

• a 2.29 per cent Flexx for Term variable rate with 65 per cent LTV, a £199 booking fee, £800 arrangement fee and no ERCs; and

• a 2.65 per cent Flexx for Term variable rate with 80 per cent LTV, a £199 booking fee and £800 arrangement fee and no ERCs.

Commenting on the re-price, David Whittaker, managing director of Keystone said: “Since February, investors have responded well to our improved offering, particularly the 80 per cent LTV rates in the Classic Range and the higher loan amounts – to £1m – in the Premier Range.

“Our products have always been criteria rather than rate-led offerings but we have been in talks with Aldermore, which funds Keystone, and are delighted to announce that the Bank has found room in its margins to re-price downwards.

“This should make both ranges even more attractive to landlords.”

Colin Franklin, managing director of Coventry’s intermediary mortgage subsidiary Godiva Mortgages, said: “Available on both BTL and residential, our latest Flexx for Term additions offer the flexibility of unlimited overpayments with great rates.”