Pepper Money has cut its high loan-to-value rate by up to 80 basis points and Darlington has cut rates by up to 20 basis points in the latest price cuts for lenders.
Paul Adams
Pepper’s 48 and 48 Light two-year rates with a 90% LTV have fallen as much as 80 basis points to 6.99% and 6.94%, respectively.
The five-year equivalents have fallen by as much as 32 basis points.
It has also launched a number of limited-edition, two-year, dual-interest deals.
These offer the option for a lower initial interest rate and a higher fallback interest rate, maximizing borrowing power at the time of application.
Alternatively, borrowers can opt for a higher initial interest rate and a lower reversion rate, reducing ongoing costs once the fixed period ends.
Pepper has also made some price cuts on buy-to-let deals, which now start from 4.64%.
After repricing, residential rates now start from 5.75%.
Meanwhile, at Darlington Building Society, the two-year fixed rate on homes with an LTV of 80% has been reduced by 20 basis points to 5.09%.
A two-year fixed rate in shared ownership has fallen by 10 basis points to 5.79%.
Paul Adams, sales director at Pepper Money, said: “Affordability is still one of the biggest challenges brokers face for their clients, especially when rates are changing as quickly as before.
“It can often be difficult to make affordability work within two years.
“But at the same time, many customers no longer want to be stuck if they are not sure where rates are going.
“The new limited edition products give agents a way to structure things that work for the customer today and ensure they are not worse off when they return.
“The discounts in our Pepper 48 and Pepper 48 Light ranges reflect our continued focus on giving brokers more choice.
“These are products for customers who are just one step away from the high street, and the right rate can make a real difference to whether a case is resolved.”
Chris Blewitt, head of mortgage distribution at Darlington, added: “One of the biggest challenges for brokers at the moment is not necessarily finding a mortgage, but finding one that really suits the customer’s circumstances.
“We regularly see cases involving first-time landlords, visa borrowers, holiday let operators and clients looking to transfer a former home into the buy-to-let market.
“None of these are particularly unusual scenarios, but they may still be outside the comfort zone of some lenders.
“In cases like this, criteria are just as important as the rate.
“Brokers need lenders who can look at the whole picture rather than a competitive rate, which is why we have continued to focus on both pricing and flexibility across the range.”