As expected, the Bank of England (BoE) held the base rate in September as inflation remains stubbornly higher than desired. However, most predictions seem to be hopeful that it should be reduced in November. ‘SWAP rates’, which determine how fixed rates are priced, have declined sharply recently, which is leading to rates continuing to inch downwards, with the lowest 5 year fixed now down to 3.74%. Help for first time buyers continues to be a priority amongst lenders and Nationwide have just launched a product aimed at helping first time buyers get on the property ladder by offering mortgages up to 6 times their income.
Headline Rates:
- 2-year fixed at 60% LTV – 3.99% with a lender’s arrangement fee of £899
- 3-year fixed at 60% LTV – 3.91% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.74% with a lender’s arrangement fee of £1495
- Buy-to-let 5-year fixed rate at 60% LTV- 3.97% with a lender’s arrangement fee of £1,749.
LTV = loan to value
| Residential repayment fixed rate – a number of these deals can be done on an Interest Only basis up to 50% with the sale of property as the repayment strategy |
|---|
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2-year offset fixed – 4.51% to 30.11.26 | £1,995 | YES |
| 60% | 5-year offset fixed – 4.29% to 30.11.29 | £1,995 | YES |
| 60% | 2-year fixed – 3.99% to 02.02.27 | £999 | YES |
| 60% | 5-year fixed – 3.74% to 31.12.29 | £1,499 | YES |
| 75% | 2-year fixed – 4.19% to 31.12.26 | £995 | YES |
| 75% | 5-year fixed – 3.90% to 31.12.29 | £1,495 | YES |
| Residential repayment tracker/discounted rate – a number of these deals can be done on an Interest Only basis up to 50% with the sale of property as the repayment strategy |
|---|
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2-year tracker – 0.15% + BEBR = 5.15% pa | £999 | NO |
| 75% | 2-year tracker – 0.29% + BEBR = 5.29% | £999 | NO |
| Buy-to-lets, 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.
BEBR = Bank of England Base Rate currently 5.25% pa.
We’re here to help
We strongly recommend that borrowers seek professional independent financial advice before making a final decision on the most suitable course of action for your individual circumstances. 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.