Mansfield Building Society is cutting its SVR by 0.25 per cent to 5.34 per cent following the Bank of England’s recent decision to cut its base rate to 0.25 per cent.
The new SVR will be available to new and existing customers from 1 September 2016.
Mansfield chief executive Gev Lynott says “We have considered the likely impact of the lower base rate. Recognising the importance of maintaining a healthy mortgage market, we want to support both existing homeowners and first time buyers by reducing our mortgage rates.
“By reducing our SVR we will lower the cost of borrowing across our broad range of mortgage products. Whilst the vast majority of our mortgages are not directly linked to the base rate, we wanted to respond quickly so that both existing and new customers could benefit.”
Mansfield Building Society is also introducing a new low-fee, two year discounted rate mortgage at a variable pay rate of 1.9 percent.
This loan is available for both purchase and remortgage and has a maximum LTV of 80 per cent.
The product includes a free basic valuation, £199 application fee and £300 completion fee.
Interest only repayment options are also available on this product, up to a maximum of 75 per cent LTV.