Principality Building Society will cut selected fixed-rate deals across its residential house purchase and landlord ranges by up to 45 basis points, from Thursday (1 February).
However, the mutual will also lift prices on other home loans as swap rates rise.
Two-year sonia swap rates rose to 4.27% on Friday, compared to 3.99% on 29 December, according to Chatham Financial data. Five-year sonia swap rates rose to 3.74% from 3.34% over the same period
Highlights of the firm’s residential reductions include:
- Selected two-, three- and five-year fixes at 80% loan-to-value, down by up to 45bps
- Selected two-, three- and five-year fixes at 85% LTV, down by up to 36bps
- Selected two- and three-year fixes at 90% LTV, down by up to 44bps
Highlights of its residential increases include:
- Selected two- and five-year fixes at 75% LTV, lift by up to 8bps
- Selected two- and five-year fixes at 90% LTV, lift by up to 7bps
Highlights of its BTL reductions include:
- Selected five-year fixes at 75% LTV BTL products, down by up to 4bps
- Two- and five-year fixes at 60% LTV holiday let, down by 3bps
The business will also lift selected five-year fixes at 60% LTV landlord products by 5bps
John Charcol head of marketing Nicholas Mendes says: “As we edge closer to the next Monetary Policy Committee meeting [on Thursday], market sentiment has certainly shifted to expectation of a hold with any potential reduction to bank rate now pushing back to middle part of the year.
“As a result, the swap market has edged higher meaning some of the recent downward repricing by lenders will no doubt pause, with only a few lenders continue trying to capture any last remaining competition.”
