Newbury Building Society has cut its variable rates despite the Bank of England base rate hike.
Its 3-year discounts have been reduced by 0.20% at 75% loan-to-value, 0.55% at 85% LTV, 0.51% at 90% LTV and 0.55% at 95% LTV.
Meanwhile its 5-year discount to 75% LTV has been cut by 0.20% and its homestarter 3-year discounts have been cut by 0.51% at 90% LTV and 0.55% at 95% LTV.
Its 75% LTV Help to Buy 3 and 5-year discounts have been cut by 0.20%, while the society’s standard variable rate will remain at 4.20%.
Phillippa Cardno, operations and sales director at Newbury, said: “The Bank of England base rate increase meant between four and five million UK households on standard variable rate mortgage faced a monthly repayment increase.
“Although the bank base rate has not changed since September last year when it was reduced from 0.5% to 0.25%, the price of mortgage business products across the industry has continued to edge downwards in the last 15 months for borrowers.
“As a result, we are taking the opportunity by not increasing the SVR to increase demand for our products to both new and existing members.”
The society has also reduced its self-build product from 4.7% to 4.2%.
Roger Knight, lending manager at Newbury Building Society, said: “The reduction in the cost of our self-build product is something we’re particularly excited about.
“We’re passionate about encouraging those who have a dream of building their own property by offering them the means to be able to do so.
“This particular mortgage enables those with the ambition to build their own property the freedom and flexibility to choose exactly what sort of property they want to build and to their personal specifications; our Self-Build mortgage is designed to make the dream a reality.”