The Bank of England (BOE) Monetary Policy Committee voted to retain the BOE base rate at the present level of 0.75% pa.
The mortgage market remains competitive; in the past week some lenders have reduced their interest rates and arrangement fees, especially in the buy-to-let market. The level of lenders’ enquiries has increased over the past quarter.
A few schemes which remain and are worth noting:
- 2 year fixed at 60% LTV – 1.35% pa, with a reduced lenders arrangement fee £995.
- 5 year fixed offset at 60% LTV – 1.99% pa, with a lenders arrangement fee £999.
- 5 year fixed at 60% LTV – 1.75% pa, with an increased lenders arrangement fee £1,499.
*LTV = loan to value
With a new Prime Minister in situ, all eyes are firmly on what he has in store for the UK property market. He is under increasing pressure to revamp stamp duty in an attempt to stimulate the housing market. The suggestion to move the burden of stamp duty from buyers to sellers has caused significant stir. Whilst this will aid first time buyers and those moving up the chain, it could potentially bring negative repercussions to the top end of the ladder, as those individuals will be deterred from downsizing, and therefore not free up larger homes.
Rightmove’s analysis stated that the price of properties coming to market fell by 0.2% this month, which is the first monthly fall in 2019. With record employment levels, low interest rates and good mortgage availability, buyers have a lot in their favour apart from the lack of political certainty. Individuals who have postponed their purchase should note that over-supply is ideal. It could be a good opportunity to negotiate a relative bargain in the second half of the year.
Based on data collated by Zoopla, they believe that recent price falls will be short lived and potentially plateau before improving, and these increases are predicted in early 2020.
The equity release market continues to grow significantly, with rates maintained in the 3.4% pa – 4.25% pa range.
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 – 1.35% to 31/10/2021 | £995 | YES |
| 3 year Fixed – 1.58% to 30/09/2022 | £999 | YES | |
| 5 year Fixed – 1.75% to 30/09/2024 | £1,499 | YES | |
| Offset 2 year Tracker – 1.54% (BOE + 0.79%) | £999 | YES | |
| 2 year Tracker – 1.29% (BOE + 0.54%) | £999 | NONE | |
| 2 year Offset Fixed – 1.64% to 31/08/2021 | £999 | YES | |
| 5 year Offset Fixed – 1.99% to 31/08/2024 | £1,499 | YES | |
| 65% | 2 year Tracker – 1.42% (BOE + 0.67%) | £995 | YES |
| Lifetime Tracker/Variable – 2.49% | £1,999 | NONE | |
| 75% | 2 year Fixed – 1.42 to 31/10/2021 | £995 | YES |
| 3 year Fixed – 1.66% to 30/09/2022 | £999 | YES | |
| 5 year Fixed – 1.81% to 30/09/2024 | £999 | YES | |
| Residential – Interest Only – sale of property as a repayment vehicle | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 75% all interest only | 2 year Fixed – 1.46% to 31/10/2021 | £995 | YES |
| 5 year Fixed – 1.79% 30/09/2024 | £1,499 | YES | |
| Offset Tracker 2 year Tracker – 1.69% | £999 | YES | |
| High LTV 1st Time Buyers – Repayment | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 85% | 2 year Tracker – 1.58% (Base + 0.83%) | £999 | YES |
| 2 year Fixed – 1.68% 30/09/2021 | £999 | YES | |
| 5 year Fixed – 1.98% to 30/09/2024 | £1,499 | YES | |
| 95% | 3 year Fixed – 3.89% to 03/10/2022 | £0 | YES |
| Buy to Let Rates *Average rental cover 145% at 5.5%. | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2 year Fixed – 1.41% to 30/10/2021 | £1,795 | YES |
| 3 year Fixed – 1.74% to 01/11/2022 | £1,995 | YES | |
| 5 year Fixed – 1.95% to 30/09/2024 | £1,995 | YES | |
| 2 year Tracker – 1.49% (BOE + 0.74%) | £1,795 | YES | |
| 75% | 2 year Fixed – 1.68% to 31/10/2021 | £1,295 | YES |
| 3 year Fixed – 2.09% to 01/11/2022 | £1,995 | YES | |
| 5 year Fixed – 2.24% to 31/10/2024 | £1,795 | YES | |
| 2 year Tracker – 1.69% (Base + 0.94%) | £1,499 | YES | |
| Second Charge, Bridging Finance, Equity Release Loans available – rates upon request |
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