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 even further 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 – 1.54% pa, with a lender’s arrangement fee of £999
- 5 year Fixed at 60% LTV – 1.44%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 research from Moneyfacts shows that consumers can not only get a better fixed mortgage rate today compared to a year ago, but the number of products charging a fee has also fallen. Those clients who are still paying a standard variable rate on their mortgages could benefit greatly from reviewing their mortgage deals.
The latest Nationwide House Price Index data shows that in November whilst house prices have continued to grow, the growth remains slow. While house prices growth has remained slow, mortgage rate competition has continued to intensify.
Moneyfacts described first time buyers as the “lifeblood of the mortgage market”. A mortgage price war to attract first time buyers with deposits as low as 5% is intensifying, with providers slashing their rates. The rate gap between the average two-year fixed rate mortgage on the market for borrowers with a 5% deposit, and the typical two-year fix for those with 10% deposit is now at it’s smallest in six years. This is despite borrowers with the smallest deposits often being seen as more ‘risky’ and recent reports suggesting uncertainties relating to the economy and Brexit are having an impact on the housing market.
Data collected by Key Partnership shows that the number of equity release products has increased by a staggering 95% in the year to October 2019. While lending in 2019 has been subdued, product innovation has not and advisers now have almost double the number of products to choose from and the widest range of features ever seen in the market. Guided by their advisers, consumers can now choose the product which ideally fits their circumstances, choosing to repay interest, make one off capital payments or protect their family’s inheritance as they see fit.
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 31/03/2022 | £995 | YES |
| 3 year Fixed – 1.39% to 31/03/2023 | £999 | YES | |
| 5 year Fixed – 1.44% to 28/02/2025 | £1,495 | YES | |
| Offset 2 year Tracker – 1.47% (BOE + 0.72%) | £999 | YES | |
| 2 year Tracker – 1.19% (BOE + 0.44%) | £995 | NONE | |
| 2 year Offset Fixed – 1.25% to 28/02/2022 | £999 | YES | |
| 5 year Offset Fixed – 1.54% to 28/02/2022 | £999 | YES | |
| 65% | 2 year Tracker – 1.39% (BOE + 0.64%) | £999 | YES |
| Lifetime Tracker/Variable – 2.49% | £1,999 | NONE | |
| 75% | 2 year Fixed – 1.26% to 31/03/2022 | £995 | YES |
| 3 year Fixed – 1.58% to 31/01/2023 | £999 | YES | |
| 5 year Fixed – 1.54% to 01/03/2025 | £995 | YES | |
| Residential – Interest Only – sale of property as a repayment vehicle | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 75% all interest only | 2 year Fixed – 1.26% to 31/03/2022 | £995 | YES |
| 5 year Fixed – 1.54% 31/03/2025 | £999 | YES | |
| Offset 2 year Tracker – 1.63% (BOE + 0.88%) | £999 | YES | |
| High LTV 1st Time Buyers – Repayment | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 85% | 2 year Tracker – 1.40% (Base + 0.65%) | £999 | YES |
| 2 year Fixed – 1.55% 31/01/2022 | £999 | YES | |
| 5 year Fixed – 1.79% to 28/02/2025 | £1,495 | YES | |
| 95% | 3 year Fixed – 1.39% to 31/03/2023 | £999 | 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 – 1.89% to 31/01/2025 | £1,795 | YES | |
| 2 year Tracker – 1.69% (BOE + 0.60%) | £1,499 | YES | |
| 75% | 2 year Fixed – 1.56% to 01/03/2022 | £1,995 | YES |
| 3 year Fixed – 1.65% to 31/03/2023 | £1,995 | YES | |
| 5 year Fixed – 1.99% to 31/03/2025 | £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 |
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