The Budget has imposed stamp duty increases across the board, with the additional surcharge rising from 3% to 5% for second-home owners with immediate effect, and the thresholds increasing for first-time buyers from next April. First-time buyers will start to pay stamp duty on prices over £300,001 and will lose their relief on purchases over £500,000, which in the South East could affect many first-time buyers. This announcement may see a push for first-time buyers to get ahead of the changes. Landlords have faced numerous challenges with regulatory reform over recent years, and the increase to stamp duty may act as a deterrent to investors. However, the need for rental properties still far outstrips demand and the market has proven to be extremely resilient.
- 2-year fixed at 60% LTV – 3.99% with a lender’s arrangement fee of £999
- 3-year fixed at 60% LTV – 3.93% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.84% 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 – 4.76% to 30.04.27 | £999 | YES | |||||
| 5-year offset fixed – 4.04% to 30.04.30 | £999 | YES | ||||||
| 2-year fixed – 3.99% to 31.12.26 | £999 | YES | ||||||
| 5-year fixed – 3.84% to 28.02.30 | £1,499 | YES | ||||||
| 75% | 2-year fixed – 4.12% to 31.12.26 | £999 | YES | |||||
| 5-year fixed – 3.89% 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 = 5.08% | £1,499 | NO | |||||
| 75% | 2-year tracker – 0.15% + BEBR = 5.15% | £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 5% 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.