Following the decision by the Bank of England to cut the base rate by 0.25% to 5% this month, we are now waiting to see how this will affect reductions in lenders fixed rates. Rates have already been steadily reducing in anticipation of this cut in the base rate. Criteria still continues to loosen and we are also seeing more schemes being released that are aimed at helping first time buyers get on to the property ladder.
Buy-to-let rates remain at their lowest levels for some time, and the cut in the base rate should lead to a reduction in the rates used to calculate yields, meaning more options for landlords.
- 2 year fixed at 60% LTV – 4.22% with a lender’s arrangement fee of £899
- 3 year fixed at 60% LTV – 4.29% with a lender’s arrangement fee of £999
- 5 year fixed at 60% LTV – 3.84% with a lender’s arrangement fee of £899
- Buy-to-let 5 year fixed rate at 60% LTV- 4.37% 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
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2 year offset fixed – 5.09% to 30.10.26 | £1,995 | YES |
| 60% | 5 year offset fixed – 4.75% to 30.10.29 | £1,995 | YES |
| 60% | 2 year fixed – 4.22% to 30.09.26 | £899 | YES |
| 60% | 5 year fixed – 3.84% to 30.09.29 | £1,499 | YES |
| 75% | 2 year fixed – 4.45% to 30.09.26 | £849 | YES |
| 75% | 5 year fixed – 4.03% to 30.09.29 | £849 | 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 – 0.15% + 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.