Masthaven Bank has announced a number of rate cuts on its residential first charge range to help support UK borrowers and brokers.

The latest rates include:

- 2-Year Fixed now from 3.04% (down from 3.24%)
- 5-Year Fixed now from 3.34% (down from 3.59%)
- 2-Year Fixed Fees-Free now from 3.54% (down from 3.74%)
- 5-Year Fixed Fees-Free now from 3.64% (down from 3.89%)

As part of the changes the specialist lender has also updated its lending criteria and extended its automated valuation model (AVM) policy. This means that:

- Additional earnings like bonus and overtime are now included in affordability;
- Bank statements are no longer required for all self-employed and Buy to Let cases;
- Projections are now considered for self-employed;
- AVMs are now considered for purchase and Buy to Let cases, and up to £350,000 on both first and second charge.

Rob Barnard, director of intermediaries at Masthaven, said: “Activity in the housing market has soared since the start of the pandemic, thanks in part to initiatives like the stamp duty holiday. The result has been a booming market with high transaction levels and house price growth.

“It hasn’t all been plain sailing, however, and the combination of high house prices, the end of the tax holiday in July and the looming deadline for the end of the furlough scheme is likely going to bring affordability issues to the fore for some borrowers. These rate reductions as well as a return to many of our pre-COVID underwriting approaches allows us to continue supporting borrowers, brokers and the wider market.”

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