Following on from the rise in the BOE Base rate in August, initial expectation was that fixed rates would rise, but in fact a number of lenders have just reduced theirs, particularly the 5 year fixed rates. This certainly provides an excellent opportunity to lock into these historically low rates. A few schemes worth noting:

• 2yr fixed offset at 60% LTV – 1.64% pa, lenders arrangement fee £999 (remained the same)
• 5yr fixed offset at 60% LTV – 1.94% pa, lenders arrangement fee £999 (dropped by 0.05%)
• 5yr fixed at 60% LTV – 1.83% pa, lenders arrangement fee £1,995 (remained the same)

This month, we continue to highlight the merits of a ‘joint borrower sole proprietor’ mortgage. This type of mortgage is very useful for parents who wish to assist their children make their first purchase, and where the children’s circumstances do not allow them to borrow the amount they need.

Another attraction of this type of mortgage is that as the parents are not on the title deeds, the purchase does not give rise to the extra 3% SDLT for a 2^nd property. Nor is there a potential CGT liability.

BTL mortgage rates have also not moved as much as expected. Although there has been a sequence of changes at the government and regulatory level which have significantly impacted the BTL market, those looking strategically to the long-term, whilst drawing upon specialist advice to fully appreciate the influence of these adjustments to policy, will find it has remained buoyant.

If you have any questions on the BTL sector reforms, rates or the mortgage market in general, the Mortgages team are here to help.

The above content does not represent a personal recommendation. If you have any questions about offset mortgages or would like to discuss the best options for your individual circumstances, please contact our Mortgages team on 020 7444 4030 or by email.

Your home is at risk of repossession if you do not maintain mortgage payments.

Residential Repayment – number of these deals can be done on Interest Only basis up to 50%
LTVs	Rate	Arrangement Fee	ERC
60%	2Yr Fixed – 1.42% to 31/10/20	£1,495	YES
	3Yr Fixed 1.68% to 31/10/21	£999	YES
	5Yr Fixed – 1.83% to 31/10/23	£1,995	YES
	Offset 2Yr Tracker – 1.79% (Base + 1.04%)	£1,749	YES
	2Yr Tracker – 1.49% (Base + 0.74%)	£1,999	NONE
	2Yr Offset Fixed – 1.64% to 30/11/20	£999	YES
	5Yr Offset Fixed – 1.94% to 30/11/23	£999	YES
65%	2Yr Tracker – 1.68% (Base + 0.93%)	£995	YES
	Lifetime Tracker/Variable – 2.05%	£999	NONE
75%	2Yr Fixed – 1.54% to 30/11/20	£1,249	YES
	3Yr Fixed – 1.79% to 31/12/21	£999	YES
	5Yr Fixed – 1.99% to 31/12/23	£999	YES

 

Residential – Interest Only – sale of property as a repayment vehicle
LTVs	Rate	Arrangement Fee	ERC
75% all interest only	2Yr Fixed – 1.69% to 30/11/20	£1,499	YES
	5Yr Fixed – 2.29% to 30/11/23	£1,499	YES
	Offset Discount 2Yr Tracker – 2.69%	£1,499	NONE

 

High LTV 1st Time Buyers – Repayment
LTVs	Rate	Arrangement Fee	ERC
85%	2Yr tracker – 1.89% (Base + 1.14%)	£995	NONE
	2Yr Fixed – 1.69% to 30/11/20	£999	YES
	5Yr Fixed – 2.14% to 30/11/20	£499	YES
95%	3Yr fixed – 3.69% to 30/11/21	£0	YES

 

Buy to Let Rates *Average rental cover 145% at 5.5%.
LTVs	Rate	Arrangement Fee	ERC
60%	2Yr Fixed – 1.50% to 31/10/20	£1,950	YES
	3Yr Fixed – 1.69% to 01/01/22	£1,995	YES
	5Yr Fixed – 2.05% to 30/09/23	£1,995	YES
	2Yr Tracker – 1.74% (Base + 0.99%)	£1,999	YES
75%	2Yr fixed – 1.79% to 31/10/20	£1,950	YES
	3Yr Fixed – 2.09% to 31/10/21	£1,999	YES
	5Yr Fixed – 2.49% to 30/11/23	£1,995	YES
	2Yr Tracker – 1.94% (Base + 1.19%)	£1,995	YES

 

Second Charge, Bridging Finance, Equity Release Loans available – rates upon request