Unsurprisingly, the Bank of England kept the base rate flat in June, given inflationary pressures and global uncertainty. But with four monetary policy meetings left this year, most predictions point to rates coming down in August and in November. The UK’s rate remains significantly higher than the Eurozone’s.
But despite the interest rate rises in May as a result of the inflation announcement and increases in SWAP rates (which lenders use to price their fixed rates), we are noticing a gradual downwards trend emerge.
Certainly, some of the sub-4% rates now available will be welcome relief for borrowers coming off long-term, low, fixed rates.
Encouragingly, innovation in green products for houses with high energy efficiency ratings and products aimed at helping buyers on to the property ladder continue to grow.
- 2-year fixed at 60% LTV – 3.81% with a lender’s arrangement fee of £1,499
- 3-year fixed at 60% LTV – 3.88% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.90% with a lender’s arrangement fee of £999
- Buy-to-let 2-year fixed rate at 60% LTV – 4.08% with a lender’s arrangement fee of £1,449
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 – 4.34% to 31.12.27 | £999 | YES |
| 60% | 5-year offset fixed – 4.49% to 31.12.30 | £999 | YES |
| 60% | 2-year fixed – 3.81% to 30.09.27 | £1,499 | YES |
| 60% | 5-year fixed – 3.90% to 02.10.30 | £999 | YES |
| 75% | 2-year fixed – 3.94% to 30.09.27 | £1,499 | YES |
| 75% | 5-year fixed – 4.05% to 30.09.30 | £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.