Principality reduces 5-year fixed rate deal

Principality Building Society has cut the rate on its five-year buy-to-let mortgage product at 75% loan-to-value by 0.1% to 2.75%, making the deal among the most competitive in the BTL market at the moment.

The product comes with a free standard valuation, free legals for remortgages and has no product or commitment fees.

Principality’s reduce rate mortgage product is likely to appeal to buy-to-let landlords, especially as momentum appears to be growing around an interest rate hike next month.

The MPC meets next month and is expected to increase the base rate from 0.5% to 0.75%, supported by the fact that the Bank of England Governor Mark Carney last week said that he had become increasingly confident that the UK’s economy’s weak start to the year mostly reflected bad weather.

A poll of City analysts by Reuters has given an 80% probability of a rate rise in August.

Ross Williams, Principality’s mortgage product manager, commented: “We recognise that five-year fixed products remain popular and the financial pressures our customers are facing, which is why we are continuing to support our broker partners, by offering good value fee free products to meet their clients’ needs.”

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