Suffolk Building Society has cut rates across its residential interest only mortgage range by up to 0.16% and launched a 90% loan-to-value (LTV) discount product.
The changes are aimed at helping borrowers who want to switch repayment type due to affordability pressures, and those in later life.
The new 90% LTV mortgage is a 2-year discount deal, available for both purchase and remortgage, with a rate of 4.95% and a maximum loan amount of £650,000.
The 80% LTV residential 2-year discount interest only mortgage has dropped by 0.15% to 4.85%.
The 80% LTV 2-year fixed interest only has fallen by 0.16% to 4.99% until 31st August 2027.
Meanwhile, the 80% LTV 5-year fixed interest only has been reduced by 0.16% to 5.09% for 60 months.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “There’s a strong focus on supporting first time buyers at the moment – and so there should be; they underpin our housing market.
“However, interest only borrowers, who often fall into the ‘later life’ group, have long been underserved – facing age restrictions and limited options.
“With our changes to repayment vehicles, we decided to close the rate differential between our capital and interest, and our interest only products – giving people more choice.”
Grimshaw added: “This helps borrowers who are looking to borrow into retirement, people currently on interest only terms, or those looking to migrate over to interest only.
“These rate reductions come on the back of the significant criteria change we made on Monday, increasing the maximum LTV from 50% to 70% when downsizing.”
