Principality Building Society Updates Mortgage Product Rates: Key Changes for UK Borrowers

Principality Building Society Announces New Mortgage Rate Changes – September 2025

Principality Building Society, one of the UK’s leading mutual lenders, has unveiled important updates to its mortgage product range, effective from 9am, Monday 22nd September 2025. Existing mortgage products will be withdrawn from the market at 5pm on Sunday 21st September 2025. These changes bring a mix of rate decreases and increases across a range of residential, Help to Buy (Wales), joint borrower sole proprietor, and holiday let mortgages. Here’s what prospective borrowers and intermediaries need to know.

Summary of Key Mortgage Rate Updates

The new Principality mortgage range features both rate reductions on selected products—especially at higher loan-to-value (LTV) tiers—and rate increases on others. This means opportunities for savings and the need to act quickly for those sensitive to potential rate hikes.

• Effective Date: New rates apply from Monday 22nd September 2025.
• Withdrawal: Existing products removed Sunday 21st September, 5pm.
• Applies to: Residential, Help to Buy (Wales), Joint Borrower Sole Proprietor, and Holiday Let mortgages.

Rate Decreases – Highlights

• Residential: 5-year fixed 90% LTV without product fee reduced by 0.08%.
• Residential (with cashback): 5-year fixed 90% LTV reduced by 0.06%.
• Help to Buy (Wales): 2-year fixed 75% LTV reduced by 0.08%.
• Joint Borrower Sole Proprietor:
  • 5-year fixed 85% LTV reduced by 0.06%.
  • 5-year fixed 90% LTV reduced by 0.08%.
• Holiday Let: 2-year fixed 60% LTV reduced by 0.10%.

Rate Increases – Highlights

• Residential:
  • 2-year fixed 65% LTV (no fee) increased by 0.06%.
  • 3-year fixed 65% LTV increased by 0.05%.
  • 5-year fixed 65% LTV (no fee) increased by 0.04%.
  • 2-year fixed 75% LTV (no fee) increased by 0.07%.
  • 3-year fixed 75% LTV increased by 0.07%.
  • 5-year fixed 75% LTV (no fee) increased by 0.06%.
  • 2-year fixed 80% LTV (no fee) increased by 0.11%.
  • 2-year fixed 85% LTV (with £895 fee) increased by 0.06%.
  • 5-year fixed 85% LTV (no fee) increased by 0.06%.
• Residential (with cashback):
  • 2-year fixed 65% LTV increased by 0.07%.
  • 2-year fixed 75% LTV increased by 0.06% and another option by 0.05%.
  • 2-year fixed 85% LTV increased by 0.03%.
• Joint Borrower Sole Proprietor:
  • 2-year fixed 75% LTV increased by 0.08%.
  • 5-year fixed 75% LTV increased by 0.10%.
  • 2-year fixed 80% LTV increased by 0.11%.

Who Benefits from These Changes?

• First-Time Buyers: Particularly those borrowing up to 90% LTV may find improved affordability.
• Homeowners Remortgaging: May take advantage of reduced fixed rates at certain higher LTVs.
• Joint Borrower Sole Proprietor Applicants: Families helping relatives onto the housing ladder may benefit from competitive longer-term fixed rates with lower rates at 85% and 90% LTV.
• Holiday Let Investors: Owners seeking lower rates on 2-year fixed deals at 60% LTV can make the most of cost reductions.

Considerations for Borrowers

• If you are seeking high-LTV or cashback mortgage options, now is a strategic time to lock in competitive fixed rates.
• Borrowers targeting lower LTVs, particularly at 65%, 75%, or 80% LTV, should note modest rate increases and consider acting promptly before additional changes take effect.

Why Choose Principality Building Society?

• Strong track record of supporting a range of borrower profiles, from first-time buyers to experienced property investors.
• Flexible product options: cashback, fee-free, and support for joint borrower sole proprietor applications.
• Specialised products for the Welsh market, including Help to Buy Wales and holiday lets.
• Responsive service with periodic product refreshes to reflect changing markets.

What Should You Do Next?

Timing is key: If you are planning to arrange a new mortgage or remortgage with Principality, act before the current range closes on Sunday 21st September 2025 to secure older rates. For up-to-date comparisons and personalised recommendations, contact our expert mortgage advisers today. Let us help you evaluate your options and determine the most suitable Principality mortgage for your needs.

Contact Us for Expert Mortgage Advice

Review our best buy tables or call 02392 006428 to speak directly with a fully qualified mortgage adviser for tailored support.

Frequently Asked Questions (FAQs)

• Who qualifies for Principality’s 90% LTV fixed-rate mortgage?Applicants with a minimum 10% deposit, meeting Principality’s affordability and credit criteria, can apply. Suitable for first-time buyers and home movers.
• How will the rate changes affect my monthly repayments?If you select a newly reduced rate, your payments may decrease slightly. Rate increases will mean higher repayments on applicable products. Speak to our advisers for precise figures.
• Is Principality suitable for Holiday Let or Buy-to-Let investors?Principality offers specialist holiday let mortgages, especially with new reductions for 2-year fixed 60% LTV. Review your eligibility with our team.
• Can I get a mortgage with cashback or no product fee?Yes, Principality’s product range includes both cashback and fee-free options at selected LTV levels—review the details with a broker.
• How do I apply or check if I’m eligible after the changes?Contact our advisers via phone or our website for tailored, up-to-date qualification checks and assistance with your application.