Principality Building Society has introduced lower interest rates at maturity for a range of its residential mortgage products.

At the end of the fixed mortgage product term, rather than reverting to the standard variable rate (SVR), the interest rates for customers who hold a stepped reversion rate mortgage will be 1% less than SVR for a period of time. The residential products which are part of the stepped reversion range include all two and three year fixed mortgage products, as well as any five year discounted mortgage products.

The reduction in reversion rates will impact the calculations used by the Society to assess a customer’s affordability for a mortgage, potentially increasing the maximum the Society will lend to new customers applying for a stepped reversion mortgage.*

For two-year fixed products, customers will be offered SVR -1% interest rate for a three-year period. For five-year discount products, it’ll be one year on the reduced SVR interest rate. Early Repayment Charges (ERC) do not apply to products in this range whilst SVR -1% applies.

Based in Wales, Principality is the UK’s sixth largest building society. The Society lends across England and Wales and offers a range of residential mortgage products including Joint Borrower Sole Proprietor and Help to Buy England and Wales to support first time buyers.

Morgan Miles, head of products at Principality Building Society said: ‘’We’re delighted to be launching the stepped reversion rate mortgages range for new residential mortgage customers. Customers who hold a stepped reversion mortgage will see the costs of monthly repayments reduced at the end of their product term when they would usually be reverted to a standard variable rate of interest.’’