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 2nd 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%|
|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|
|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|
|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%.|
|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|
* Some lenders are still prepared to take a more flexible view, with a lower rental cover and stress rate. However, the rates may increase commensurately.
**ERC – Early Repayment Charges – if applies subject to individual lenders criteria.