As expected, the Bank of England Monetary Policy Committee voted to retain the Bank of England base rate at the present level of 0.75%pa.
The mortgage market remains competitive; some lenders have in the past week reduced their interest rates and arrangement fees. The level of lenders’ enquiries has increased over the past quarter.
A few schemes which remain and are worth noting:
- 2yr fixed at 60% LTV – 1.44% pa, with a reduced lenders arrangement fee £999.
- 5yr fixed offset at 60% LTV – 1.99% pa, with a lenders arrangement fee £999.
- 5yr fixed at 60% LTV – 1.80% pa, with a reduced lenders arrangement fee £995.
*LTV = loan to value
The latest figures produced by the Bank of England have shown that mortgage lending rose by nearly 5% between March and April. April’s lending total was slightly higher than the average seen over the previous six months.
Mortgage approvals for house purchases rose, however, the approvals for re-mortgaging was practically unchanged.
Average UK house prices fell over the year to April 2019, the cause of this being attributed to the lack of properties coming onto the market. In London, new instructions from property sellers plunged by 22% (as reported by a leading estate agent this week). They are reporting that there are 12 buyers chasing every property instruction across the UK, as new buyer registrations return to pre-Brexit vote levels and the number of new instructions continues to fall.
With the new Tenant Fees Act 2019 now in place as of 1st June, the lettings agent trade body Arla Propertymark reports that landlords are already being driven out of the market, due to a spike in the number of investors selling their buy-to-let properties. However, those investors remaining in the market are seeing a modest rent rise in April.
The equity release market continues to grow at a significant pace. Previously the main use of equity release funds was to purchase additional properties. This has now declined in favour of home improvements, closely followed by clearing debts. Rates available for equity release are as low as 3.4% and for max borrowing 4.25%.
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 – although a number of these deals can be done on an Interest Only basis up to 50% | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2 year Fixed – 1.44% to 30/07/2021 | £999 | YES |
| 3 year Fixed – 1.63% to 31/07/2022 | £999 | YES | |
| 5 year Fixed – 1.80% to 31/10/2024 | £995 | YES | |
| Offset 2 year Tracker – 1.69% (BOE + 0.94%) | £1,749 | YES | |
| 2 year Tracker – 1.39% (BOE + 0.56%) | £995 | NONE | |
| 2 year Offset Fixed – 1.62% to 31/08/2021 | £999 | YES | |
| 5 year Offset Fixed – 1.99% to 31/08/2024 | £999 | YES | |
| 65% | 2 year Tracker – 1.49% (BOE + 0.74%) | £995 | YES |
| Lifetime Tracker/Variable – 2.64% | £999 | NONE | |
| 75% | 2 year Fixed – 1.53 to 30/09/2021 | £999 | YES |
| 3 year Fixed – 1.74% to 30/09/2022 | £999 | YES | |
| 5 year Fixed – 1.89% to 31/10/2024 | £995 | YES | |
| Residential – Interest Only – sale of property as a repayment vehicle | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 75% all interest only | 2 year Fixed – 1.53% to 30/09/2021 | £999 | YES |
| 5 year Fixed – 1.89% 30/10/2024 | £995 | YES | |
| Offset Tracker 2 year Tracker – 1.69% | £1,749 | YES | |
| High LTV 1st Time Buyers – Repayment | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 85% | 2 year Tracker – 1.52% (Base + 0.77%) | £999 | YES |
| 2 year Fixed – 1.57% 30/09/2021 | £1,499 | YES | |
| 5 year Fixed – 2.04% to 30/09/2024 | £1,499 | YES | |
| 95% | 3 year Fixed – 3.89% to 31/07/2022 | £0 | YES |
| Buy to Let Rates *Average rental cover 145% at 5.5%. | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2 year Fixed – 1.47% to 30/07/2021 | £1,795 | YES |
| 3 year Fixed – 1.89% to 01/07/2022 | £1,995 | YES | |
| 5 year Fixed – 2.07% to 31/07/2024 | £1,795 | YES | |
| 2 year Tracker – 1.49% (BOE + 0.74%) | £1,795 | YES | |
| 75% | 2 year Fixed – 1.77% to 31/07/2021 | £1,795 | YES |
| 3 year Fixed – 2.37% to 31/07/2022 | £995 | YES | |
| 5 year Fixed – 2.59% to 31/07/2024 | £1,795 | YES | |
| 2 year Tracker – 1.99% (Base + 1.24%) | £1,795 | YES | |
| Second Charge, Bridging Finance, Equity Release Loans available – rates upon request |
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