With inflation stubbornly above the Bank of England’s 2% target (at 2.8% in February), it was no surprise the Bank kept the base rate at 4.5%. Governor Andrew Bailey spoke of economic uncertainty and of watching how both the domestic and global economic markets are evolving. Despite this, we are continuing to see fixed rates inching downwards, with some 5-year fixed rates still just below the 4% mark.
Lenders are also continuing to relax criteria and rates aimed at first-time buyers, and “green” homes are on the increase.
Lifetime mortgages are gaining popularity, and we’re seeing them being increasingly used as gifts and as part of IHT planning, to repay mortgages and other debts, to cover care costs, or just to benefit owners and enable them to enjoy life. Rates currently start at just over 6%.
• 2-year fixed at 60% LTV – 4.06% with a lender’s arrangement fee of £999
• 3-year fixed at 60% LTV – 4.06% with a lender’s arrangement fee of £999
• 5-year fixed at 60% LTV – 3.98% with a lender’s arrangement fee of £999
• Buy-to-let 5-year fixed rate at 60% LTV – 4.14% 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 – 4.68% to 31.08.27 | £999 | YES |
| 60% | 5-year offset fixed – 4.58% to 31.08.30 | £999 | YES |
| 60% | 2-year fixed – 4.06% to 30.06.27 | £999 | YES |
| 60% | 5-year fixed – 3.98% to 31.05.30 | £999 | YES |
| 75% | 2-year fixed – 4.20% to 30.06.27 | £999 | YES |
| 75% | 5-year fixed – 4.18% to 31.05.30 | £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 |
|---|
| LTV | Rate | Arrangement Fee | ERC |
|---|---|---|---|
| 60% | 2-year tracker – 0.11 + BEBR = 4.61% | £1,499 | NO |
| 75% | 2-year tracker – 0.23% + BEBR = 4.73% | £1,499 | 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 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.