The Bank of England (BOE) Monetary Policy committee have retained the base rate to 0.10%pa.

The mortgage market remains competitive. A few schemes which remain and are worth noting are as follows:

• 2 year fixed at 60% LTV – 1.14% pa, with a lender’s arrangement fee of £995.
• 5 year Fixed at 60% LTV – 1.39%pa with a lender’s arrangement fee of £999.
• Buy-to-let 2 year fixed rate at 60% LTV 1.34%pa with a lender’s arrangement fee of £1,995.

*LTV = loan to value

The Stamp Duty Land Tax (SDLT) giveaway has succeeded in stimulating the market and, with property transactions taking longer to complete, many clients are deciding to buy their next home without selling their existing property to ensure they make the most of the limited window. Many will, of course, need to pay the SDLT surcharge on additional properties, but this can still represent a saving.  Consequently, Let to Buy is particularly popular right now.

Yopa chief analyst Mike Scott says “New figures from the HMRC for the number of home sales that completed in August show a continuing recovery, but the number of sales is still not back to normal”. This is to be expected since the sales completing in August would largely have been agreed in April and May, as the housing market was effectively closed for much of this period. It is anticipated that as the market is now very active the number of monthly sales may go above previous years’ figures before the end of 2020, but this still, unfortunately, will not make up the sales lost earlier on in the year. Consumer confidence is still fragile amid fears of the fragility of the UK economic recovery and the increasingly likelihood of the reintroduction of strict national lockdown measures.

First time buyers have been hit hardest financially by the pandemic, given that the lenders have reduced higher loan to value products and tightening credit controls. Lenders are struggling to clear a swelling backlog of enquiries, which is extending processing times for mortgage applications.

As the UK ageing population seeks to fund increasingly longer retirements, property wealth can play a fundamental role for many people, both now in the future, as part of a more joined-up approach to planning for retirement. Rates for lifetime mortgages are at currently at an all-time low starting at just 2.28%, and with increasingly flexible options this is a rapidly growing market. It is important that people are aware of all the options available to them to help fund later life.

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.