Effective from tomorrow (Friday 1st November), Principality Building Society will introduce adjustments to its mortgage offering, encompassing a mix of rate decreases, new product launches, and rate increases across its residential, new-build, and buy-to-let (BTL) products.
Borrowers applying for the 5-year fixed rate at a 75% loan-to-value (LTV) under the Help to Buy Wales scheme will benefit from a 0.04% rate reduction.
Additionally, Principality is expanding its mortgage options by introducing new 2-year fixed-rate residential mortgage products at both 65% and 75% LTV.
These new products include a £1,499 product fee, which may appeal to borrowers interested in a short-term fixed rate, especially those with substantial equity in their homes.
While some rates have decreased, the majority of changes involve modest rate increases across several product types and LTV tiers.
In the residential category, 2-, 3-, and 5-year fixed-rate products at 65%, 75%, and 80% LTV levels will see increases of up to 0.17%, while 85% LTV products will increase by up to 0.10%, and 90% LTV products by up to 0.14%.
These adjustments apply not only to standard residential mortgages but also to those with cashback options, which will increase by up to 0.16% across 65%, 75%, and 80% LTV options.
For borrowers involved in new-build or Shared Ownership purchases, rates are also seeing changes.
Principality’s 2- and 5-year fixed-rate products for 95% LTV Shared Ownership will increase by up to 0.11%, while the 5-year fixed rate for standard 95% LTV products will rise by 0.08%.
The society is also adjusting rates in specialised mortgage products such as Joint Borrower Sole Proprietor (JBSP) and BTL loans.
JBSP products at 75%, 80%, 85%, and 90% LTV will increase by up to 0.17%, affecting both 2- and 5-year fixed terms.
In the buy-to-let range, 5-year fixed-rate mortgages at 60%, 70%, and 75% LTV will increase by up to 0.18%, indicating a slight uptick for property investors and landlords looking to lock in their rates over the longer term.
Additionally, holiday let mortgages will see moderate rate adjustments, with 2- and 5-year fixed-rate products at 60% LTV increasing by up to 0.10% and the 5-year fixed-rate at 75% LTV rising by 0.11%.
