Based on the expectation that the Bank of England’s base rate will reduce in May, lenders have been decreasing rates over the last week or so. With the lowest fixed rates now down to c 3.9%, it is expected the downward trajectory will continue. Even though the IMF has downgraded growth forecasts, markets remain optimistic that we may see up to three base rates cuts this year, which borrowers coming off a very low five-year fixed rate will warmly welcome.
Encouragingly, we are still seeing lenders release new products aimed at helping borrowers, especially first-time buyers, by loaning higher income multiples, looking for smaller deposits and also offering longer-term fixed propositions.
The housing shortage is still a huge problem and it will be interesting to see if any stamp duty changes are introduced to encourage later life downsizers. In the meantime, equity release is still proving to be an essential tool to help older homeowners.
- 2-year fixed at 60% LTV – 3.94% with a lender’s arrangement fee of £999
- 3-year fixed at 60% LTV – 3.94% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.94% with a lender’s arrangement fee of £999
- Buy-to-let 2-year fixed rate at 60% LTV – 4.09% 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 – 4.44% to 31.10.27 | £999 | YES |
| 60% | 5-year offset fixed – 4.53% to 31.07.30 | £1,499 | YES |
| 60% | 2-year fixed – 3.94% to 30.06.27 | £999 | YES |
| 60% | 5-year fixed – 3.94% to 30.6.30 | £999 | YES |
| 75% | 2-year fixed – 4.06% to 02.08.27 | £999 | YES |
| 75% | 5-year fixed – 4.08% to 31.07.30 | £1,499 | 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 |
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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.