Most lenders reduced rates over the last few weeks following the Bank of England’s base rate reduction in May. But after the disappointing inflation announcement, this trend has started to slow and we are even starting to see some lenders increasing rates amid speculation that that lenders had reduced them too rapidly.
Most forecasts still point to further reductions in the base rate this year, potentially brining the rate down to 3.75%. This in turn should lead to reductions in lenders’ rates; some analysts suggest a potential for fixed rates to come down to as low as 3% by the end of the year, which would be a welcome relief for borrowers.
Encouragingly, we are seeing lenders reducing stress rates for lending, meaning clients can borrow more. We are also still seeing new products being released aimed at helping first-time buyers.
Equity release is still proving to be an essential tool to help older homeowners with a range of needs. Rates currently start at just over 6%.
- 2-year fixed at 60% LTV – 3.79% with a lender’s arrangement fee of £1,999
- 3-year fixed at 60% LTV – 3.92% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.84% with a lender’s arrangement fee of £999
- Buy-to-let 2-year fixed rate at 60% LTV – 3.99% with a lender’s arrangement fee of £1,999
LTV = loan to value
Residential repayment fixed rate – a number of these deals can be done on Interest Only basis up to 50% with sale of property as the repayment strategy |
|---|
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2-year offset fixed – 4.54% to 31.08.27 | £1,499 | YES |
| 60% | 5-year offset fixed – 4.45% to 31.08.30 | £1,499 | YES |
| 60% | 2-year fixed – 3.79% to 30.09.27 | £1,999 | YES |
| 60% | 5-year fixed – 3.84% to 31.08.30 | £999 | YES |
| 75% | 2-year fixed – 4.02% to 31.10.27 | £1,999 | YES |
| 75% | 5-year fixed – 3.98% to 30.09.30 | £1,499 | YES |
Residential repayment tracker/discounted rate – a number of these deals can be done on an Interest Only basis up to 50% with sale of property as the repayment strategy |
|---|
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2-year tracker – 0.11 + BEBR = 4.36% | £1,499 | NO |
| 75% | 2-year tracker – 0.23% + BEBR = 4.48% | £1,499 | NO |
Buy to lets, Second Charge, Bridging Finance, Equity Release Loans available – rates upon request |
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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 at mortgages@partnerswealthmanagement.co.uk.
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.