Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
TSB and Paragon Announce Rate Reductions
TSB and Paragon are the latest lenders to reduce rates, with changes affecting both residential and buy-to-let products. TSB will implement reductions tomorrow across several residential mortgage deals, including three-year fixed rates for house purchase, which will decrease by up to 20 basis points. Two-year fixed rates for remortgage at 75% loan-to-value will fall by up to 10 basis points, and two-year fixes for house purchase will be reduced by 5 basis points.
In the buy-to-let sector, Paragon has lowered rates by up to 20 basis points and has also streamlined its further advance application process. Other lenders making rate cuts this week include Santander, with reductions of up to 27 basis points, as well as Halifax and BM Solutions. However, Natwest has announced some rate increases.
Accord Tightens Affordability Criteria
Accord has introduced stricter affordability requirements for certain borrowers. The lender has raised the minimum income threshold for residential customers borrowing at multiples of 4.49 times loan-to-income (LTI) and above, increasing it from £50,000 to £65,000. This change does not apply to first-time buyers, who remain exempt from any minimum income requirement.
These updates may impact letting agents and inventory clerks by influencing landlord and tenant activity, as well as mortgage accessibility for property investors and homebuyers.
Source: Mortgage Strategy