Despite economic uncertainty, house prices and the mortgage market proved to be surprisingly resilient in 2024. 2025 has seen quite a strong start, with house prices up 4.7% over the preceding 12 months according to Nationwide’s house price index. Inflation remains a concern for the Bank of England, although December’s announcement was lower than expected, leading to renewed optimism that we may see a cut in February, although how many more there will be this year, if any, remains uncertain. It is unlikely rates will fall to the levels we saw before 2022, but hopefully there are more reductions are to come. Lifetime Mortgages, despite increased rates also remain strong, as more and more retirees utilise their biggest asset. Rates currently start at c. 6%.
- 2-year fixed at 60% LTV – 4.17% with a lender’s arrangement fee of £1,499
- 3-year fixed at 60% LTV – 4.07% 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 – 4.33% 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 an interest-only basis up to 50% with sale of property as the repayment strategy | ||||||||
| LTV | Rate | Arrangement Fee | ERC | |||||
| 60% | 2-year offset fixed – 4.93% to 28.06.27 | £999 | YES | |||||
| 5-year offset fixed – 4.84% to 30.06.30 | £999 | YES | ||||||
| 2-year fixed – 4.17% to 28.04.27 | £1,499 | YES | ||||||
| 5-year fixed – 4.09% to 28.04.30 | £1,499 | YES | ||||||
| 75% | 2-year fixed – 4.39% to 02.04.27 | £1, 499 | YES | |||||
| 5-year fixed – 4.19% to 28.04.30 | £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 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 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.