Despite the Bank of England’s rate cut at the start of November, the Budget announcement resulted in a constant stream of rate rises for the whole mortgage market. The spending pledges announced in the Budget may be seen as a risk to inflation, which also led the Bank of England to warn of slower rate cuts in the future, against what was expected. However, a few lenders are beginning to reduce their rates again, which is a sign of cautious optimism across the housing market.
Lifetime mortgages are growing in popularity. Property is often a retired individual’s largest asset, and therefore people in retirement have driven growth in this space. Although lifetime mortgage rates are not linked to the Bank of England’s base rate but to annuity rates, there are signs these rates are beginning to reduce — currently starting at 5.5%.
- 2-year fixed at 60% LTV – 4.17% with a lender’s arrangement fee of £1,499
- 3-year fixed at 60% LTV – 4.12% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 4.09% with a lender’s arrangement fee of £1,499
- Buy-to-let 5-year fixed rate at 60% LTV – 4.25% with a lender’s arrangement fee of £1,499
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 – 5.04% to 28.02.27 | £1,999 | YES | |||||
| 5-year offset fixed – 4.70% to 30.04.30 | £999 | YES | ||||||
| 2-year fixed – 4.17% to 28.02.27 | £1,499 | YES | ||||||
| 5-year fixed – 4.09% to 28.02.30 | £1,499 | YES | ||||||
| 75% | 2-year fixed – 4.35% to 02.04.27 | £999 | YES | |||||
| 5-year fixed – 4.19% to 28.02.30 | £1,499 | YES | ||||||
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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 |
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| LTV | Rate | Arrangement Fee | ERC | |||||
| 60% | 2-year tracker – 0.08 + BEBR = 4.83% | £1,499 | NO | |||||
| 75% | 2-year tracker – 0.15% + BEBR = 4.90% | £1,499 | NO | |||||
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Buy-to-lets, Second Charge, Bridging Finance, Equity Release Loans available – rates upon request. |
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* 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 4.75% 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.
The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information. Past performance is no guide to future returns. The above content does not represent a personal recommendation. Your home is at risk of repossession if you do not maintain mortgage payments.