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Mortgage Best Buys – November 2019

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 weeks some lenders have reduced their interest rates and arrangement fees, especially in the buy-to-let market.

A few schemes which remain and are worth noting:

• 2 year fixed at 60% LTV – 1.19% pa, with a lender’s arrangement fee of £995.
• 5 year fixed offset at 60% LTV – 1.84% pa, with a lender’s arrangement fee of £999
• 5 year Fixed at 60% LTV – 1.45%pa with a lender’s arrangement fee of £999
• Buy-to-let 2 year fixed rate at 60% LTV 1.35% with a lender’s arrangement fee of £1,795

*LTV = loan to value

The latest news from Moneyfacts shows that despite interest rates swaps at two and five years increasing since October, fixed rates have not yet followed suit, in fact they are bucking this trend with many lenders reducing their fixed rates over the past month. This is being fuelled by lenders wanting to increase their market share, as many lenders were struggling to meet their yearly lending targets because of the property market slow down. Buyers with smaller deposits have been one of the primary beneficiaries of the lower rates. Lenders such as Santander have launched their lowest two-year Fixed rate since 2017 and their lowest ever five-year Fixed rate.

Aspiring home owners have just over three weeks left to open a Help to Buy ISA before the scheme closes to new customers on 30th November 2019.

Nationwide revealed that annual house price growth remained below 1% for the 11th month in a row. They believe this is due to the Brexit uncertainty and global factors and people not wanting to make big decisions unless they absolutely have to.

The Financial Times reported that the chilling effects of the UK political tumult on the London Housing market have lasted much longer that the immediate aftermath of the referendum, particularly for the wealthy buyers in the prime central areas of the capital. According to the Land Registry data, transactions have fallen by about one-fifth in the London market since the vote, and appear to have slowed further in recent months. There are, however, signs some international buyers are drawn back, attracted by the drop-in sterling since the referendum.

Whilst on the residential front it may seem bleak, the buy-to-let market paints a different picture according to the UK Finance figures published recently. They show that since February this year, the number of borrowers purchasing rental property has increased by 23% (even with all the regulatory changes which have happened this year). The amount of new lending has increased by a third in this same time frame and buy-to-let re-mortgages have remained steady.

The equity release market is also seeing market rises, according to the Equity Release Council. The third quarter saw an 8% rise over that period, which amounts to £11m a day, and the biggest quarter in the market to date. The Equity Release Supermarket founder attributes this uplift to the newfound interest from high net worth individuals and a rise in the number of them opting for equity release. In addition, lifetime mortgages also offer a number of features that make them an attractive borrowing option. Rates are available from 2.71%pa.

More 2 life Chief executive Dave Harris believes “that it is vital for lenders to continue to developing innovative solutions, so that both current and future retirees have greater choice and flexibility at their fingertips”.

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 – 1.19% to 31/01/2022 £995 YES
3 year Fixed – 1.44% to 31/01/2023 £999 YES
5 year Fixed – 1.45% to 31/12/2024 £1,495 YES
Offset 2 year Tracker – 1.49% (BOE + 0.74%) £999 YES
2 year Tracker – 1.18% (BOE + 0.43%) £999 NONE
2 year Offset Fixed – 1.49% to 31/12/2021 £999 YES
5 year Offset Fixed – 1.89% to 31/12/2024 £999 YES
65% 2 year Tracker – 1.28% (BOE + 0.53%) £999 YES
Lifetime Tracker/Variable – 2.49% £1,999 NONE
75% 2 year Fixed – 1.25% to 31/01/2022 £995 YES
3 year Fixed – 1.49% to 31/01/2023 £999 YES
5 year Fixed – 1.54% to 28/02/2025 £1,495 YES


Residential – Interest Only – sale of property as a repayment vehicle
LTVs Rate Arrangement Fee ERC
75% all interest only 2 year Fixed – 1.25% to 31/01/2022 £995 YES
5 year Fixed – 1.54% 28/02/2025 £1,495 YES
Offset 2 year Tracker – 1.59% (BOE + 0.84%) £999 YES


High LTV 1st Time Buyers – Repayment
LTVs Rate Arrangement Fee ERC
85% 2 year Tracker – 1.53% (Base + 0.78%) £999 YES
2 year Fixed – 1.54% 31/10/2021 £999 YES
5 year Fixed – 1.79% to 28/02/2025 £1,495 YES
95% 3 year Fixed – 3.58% to 03/01/2023 £0 YES


Buy to Let Rates *Average rental cover 145% at 5.5%.
LTVs Rate Arrangement Fee ERC
60% 2 year Fixed – 1.35% to 31/01/2022 £1,795 YES
3 year Fixed – 1.74% to 01/03/2023 £1,995 YES
5 year Fixed – 1.86% to 01/03/2025 £1,995 YES
2 year Tracker – 1.35% (BOE + 0.60%) £1,795 YES
75% 2 year Fixed – 1.60% to 31/01/2022 £1,295 YES
3 year Fixed – 1.88% to 31/12/2022 £1,995 YES
5 year Fixed – 2.12% to 01/03/2025 £1,995 YES
2 year Tracker – 1.69% (Base + 0.94%) £1,499 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 it applies, this is based on individual lenders criteria.