Mortgage rates continued to nudge downwards in July, with lenders competing by trimming rates to attract their share of the market. This behaviour does reflect market confidence in more cuts to come. The next Bank of England meeting to decide on whether to cut rates is at the start of August and although optimistic, the recent inflation announcements may cause the Bank to consider a delay.
The prospect of further cuts should still give borrowers room for optimism, but the recent unexpected inflation announcement does illustrate how hard it is to predict where interest rates may go.
Recent changes in regulatory approach are continuing to allow lenders more flexibility, including the ability to offer higher income multiples and longer terms. This could help first-time buyers and those worried about affordability.
Buy-to-let Fixed Rates – 60% LTV |
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• 2-year fixed at 60% LTV – 3.74% with a lender’s arrangement fee of £999 |
• 3-year fixed at 60% LTV – 3.88% with a lender’s arrangement fee of £999 |
• 5-year fixed at 60% LTV – 3.776% with a lender’s arrangement fee of £999 |
• Buy-to-let 2-year fixed rate at 60% LTV – 3.90% 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 Interest Only basis up to 50% with sale of property as the repayment strategy |
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LTV | Rate | Arrangement Fee | ERC |
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60% | 2-year offset fixed – 4.46% to 30.10.27 | £1,495 | YES |
60% | 5-year offset fixed – 4.44% to 31.10.30 | £1,495 | YES |
60% | 2-year fixed – 3.74% to 30.09.27 | £999 | YES |
60% | 5-year fixed – 3.77% to 30.09.27 | £999 | YES |
75% | 2-year fixed – 3.90% to 30.09.27 | £999 | YES |
75% | 5-year fixed – 3.88% to 30.09.30 | £999 | 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 |
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LTV | Rate | Arrangement Fee | ERC |
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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
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.