The specialist lender’s two-year fixed rate is now 20 basis points (0.20 per cent) lower than the current variable rate, and the three-year fixed rate is now 30 basis points (0.30 per cent) lower than the current variable rate.
According to the lender, the decision to reduce these fixed rates has been driven by “market demand” and is expected to have “significant uptake”.
Royden D’Vaz, national head of sales and marketing at Bluestone Mortgages, commented: “Fixed rates have a lot of upside – particularly for borrowers who seek the stability of a set monthly expenditure to aid budgeting, which resonates well with the specialist lending market.
“Having a set fixed term [rates] provides a borrower comfort and certainty around their repayments, in a market that’s had a number of ‘out of cycle’ rate increases (which we expect will drive interest), as well as provide a natural opportunity for brokers to increase their advisory capacity and deepen client relationships.”
Mr D’Vaz said that fixed rates can help specialist borrowers “get their finances on track” and noted that it is “an increasingly popular alternative that provides borrowers greater choice and further lending options to suit their financial objectives [as well as]… security”.
[Related: Fixed rate demand surges in April]