Mansfield announces rate reductions and the introduction of new fixed rates

06 September 2024

Mansfield Building Society has cut rates by up to 0.70% across its fixed rate mortgage products, introduced new prime residential fixed rates to November 2029, and reduced its Standard Variable Rate (SVR), including its follow-on rate, used to stress affordability.

The changes to the Standard Variable Rate from 1 September follow a reduction in the Bank of England Base Rate, whilst fixed rate updates have been applied to the Society’s prime residential, Shared Ownership, and Buy-to-Let ranges.

Fixed rate reductions of up to 0.60% have been implemented across the Society’s prime residential mortgage range, Shared Ownership rates have been reduced by up to 0.70%, and Buy-to-Let rates have decreased by up to 0.40%.

The Society’s follow-on rate, which is discounted from its SVR and applies at the end of the initial term for prime residential and Versatility mortgages, will be reduced from 7.15% to 6.90%. The lower follow-on rate reduces the overall cost of the mortgage and crucial affordability stress tests, giving a boost to prospective borrowers.

Two new 5 year fixed rates (to November 2029), where affordability is stressed using the pay rate, will help boost affordability further. All initial rates on Discounted Rate mortgages will also see the reduction of 0.25%.

Commenting on the changes, Intermediary Sales Manager, Tom Denman-Molloy said:
“We’ve reacted quickly to changing market conditions, including the Base Rate reduction. These changes reflect our commitment to supporting homebuyers and property investors, ensuring they have access to competitive and sustainable mortgage options. Not only will the rate reductions help keep monthly payments lower but they will also enhance borrowers’ buying power.

“The recent rate reductions across our prime residential, Shared Ownership, and Buy-to-Let product ranges are designed to support affordability and provide greater choice.”