Aldermore has made some changes to its owner-occupier range of mortgages, which it claims will attract borrowers looking for a better deal.
The changes will take place across both remortgage and purchase-only products, with rates starting from 2.38 per cent.
By lowering its remortgage rates at a time when many people are stuck on standard variable rates (SVRs), the specialist bank said it aims to help any customers who could save on their monthly payments or who are unable to switch to a better deal with their current lender.
In addition, those who are self-employed with as little as one year of accounts can benefit from Aldermore’s individual underwriting approach, whether they are looking to remortgage or buy a new home.
Aldermore has also said that if a customer is on a lender's standard variable rate, it is likely they could get a better deal elsewhere and save money on their monthly payments, or pay off their mortgage quicker.
The reduced standard limited edition-only products apply to two-year fixed rate mortgage only at 2.38 per cent at up to 75 per cent loan-to-value (LTV), reduced by 0.1 percentage points.
The other two-year fixed-rate remortgage is at 2.68 per cent up to 80 per cent LTV, also reduced by 0.1 percentage points.
Neither of the products have an upfront fee.
The new standard limited edition purchase-only products apply to two-year fixed rate purchase at 2.38 per cent up to 75 per cent LTV and a two-year fixed rate purchase at 2.68 per cent up to 80 per cent LTV.
According to analysis company Caci’s Mortgage Market Database, £35bn-worth of mortgages are due to mature in September and October, making it the largest maturity period in five years.
This has led to a surge in competition among lenders.
Other lenders such as Accord and Santander have also recently boosted their remortgage products to compete for new business.
Charles McDowell, Aldermore's commercial director, mortgages, said: “In an environment of consistently low interest rates, it’s tempting for homeowners to relax and go with the flow, when it comes to their mortgage. But if they’re on their lender’s standard variable rate, it’s likely they could get a better deal elsewhere and save money on their monthly payments, or pay off their mortgage quicker.
“The opportunity to remortgage could also offer customers the chance to free up some cash, giving borrowers, in particular the self-employed, more flexibility.”
Bob Riach, owner of Riach Financial Advisers, said: “There are lower fixed rates available from high street lenders. For example, Aldermore offers a two-year fixed-rate remortgage at 2.38 per cent up to 75 per cent LTV. Santander and the Nottingham both offer a rate of 1.94 per cent.
"However the Aldermore fixed rates are competitive for clients that do not meet the criteria for high street lenders such as self-employed clients with only one year of accounts."