As expected the Bank of England Monetary Policy Committee voted to retainthe BOE base rate the same at 0.75%pa.
The Nationwide’s house Price Index showed that the house Price Growth has slowed to 0.50% in the year to December 2018. Early predictions for 2019 are that the house price growth will stagnate due to market uncertainty, prices in London and the South East are likely to fall regardless of Brexit as they reach the limits of affordability. We have seen a mixed bag with valuations over the past months, with properties in London remaining to be downvalued.
Whilst some view that house prices will continue to fall, the scarcity of supply to the market and limited choice for buyers will prop prices up and decrease the likelihood of a crash.
As reported last month, whilst the near future of the property market remains uncertain, it is believed that it is still a good time to be a first time buyer, given the stamp duty break, mortgage rates remain low and those wanting some shelter from potential interest rates rises in the near term being offered very competitive rates on five year mortgage products.
The mortgage market remains competitive and levels of enquiries increased in December, however with this increase in activity the service from some lenders was running behind but they have caught up during the Christmas period and hopefully should be back on track.
A few schemes which remain worth noting:
- 2yr fixed at 60% LTV – 1.42% pa, lenders arrangement fee £1,499
- 5yr fixed offset at 60% LTV – 2.04% pa, lenders arrangement fee £1,749
- 5yr fixed at 60% LTV – 1.89% pa, lenders arrangement fee £999
The above content does not represent a personal recommendation. If you have any questions on the buy to let sector reforms, rates or the mortgage market in general, our mortgage team is here to help. Please contact the 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 – 1.44% to 31/03/2021 | £1,499 | YES |
| 3Yr Fixed 1.66% to 31/01/2022 | £1,499 | YES | |
| 5Yr Fixed – 1.89% to 01/02/2024 | £999 | YES | |
| Offset 2Yr Tracker – 1.79% (Base + 1.04%) | £1,749 | YES | |
| 2Yr Tracker – 1.39% (Base + 0.66%) | £995 | NONE | |
| 2Yr Offset Fixed – 1.64% to 28/02/2021 | £1,499 | YES | |
| 5Yr Offset Fixed – 2.04% to 29/02/2024 | £1,749 | YES | |
| 65% | 2Yr Tracker – 1.44% (Base + 0.69%) | £995 | YES |
| Lifetime Tracker/Variable – 2.49% | £1,999 | NONE | |
| 75% | 2Yr Fixed – 1.48% to 31/03/2021 | £1,499 | YES |
| 3Yr Fixed – 1.73% to 31/03/2022 | £999 | YES | |
| 5Yr Fixed – 1.94% to 29/02/2024 | £1,499 | YES | |
| Residential – Interest Only – sale of property as a repayment vehicle | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 75% all interest only | 2Yr Fixed – 1.48% to 31/03/2021 | £1,499 | YES |
| 5Yr Fixed – 1.92% 31/03/2024 | £1,499 | YES | |
| Offset Discount 2Yr Tracker – 2.04% | £999 | YES | |
| High LTV 1st Time Buyers – Repayment | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 85% | 2Yr Tracker – 1.59% (Base + 0.84%) | £999 | YES |
| 2Yr Fixed – 1.64% 31/03/2021 | £1,499 | YES | |
| 5Yr Fixed – 2.14% to 02/04/2024 | £999 | YES | |
| 95% | 3Yr Fixed – 3.89% to 31/01/2022 | £0 | YES |
| Buy to Let Rates *Average rental cover 145% at 5.5%. | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2Yr Fixed – 1.49% to 30/04/2021 | £1,995 | YES |
| 3Yr Fixed – 1.83% to 01/05/2022 | £1,995 | YES | |
| 5Yr Fixed – 2.09% to 31/01/2024 | £1,995 | YES | |
| 2Yr Tracker – 1.44% (Base + 0.69%) | £1,995 | YES | |
| 75% | 2Yr Fixed – 1.73% to 01/05/2021 | £1,995 | YES |
| 3Yr Fixed – 2.23% to 31/01/2022 | £1,999 | YES | |
| 5Yr Fixed – 2.45% to 31/01/2024 | £1,995 | YES | |
| 2Yr Tracker – 2.29% (Base + 1.54%) | £950 | YES | |
| Second Charge, Bridging Finance, Equity Release Loans available – rates upon request |
|---|
**ERC – Early Repayment Charges – if applies subject to individual lenders criteria.
