Mortgage rates have been edging upwards over the last month or so, despite the cut in the base rate in August.
It had been hoped we would see another cut in the base rate this year, but with inflation remaining stubbornly high, most predictions are now that we will not see any further cuts until May next year.
However, rates are still below 4% which is considered low historically and does remain affordable.
Lenders continue to enhance criteria to make borrowing easier, especially for first time buyers and the self-employed.
| • 2-year fixed at 60% LTV – 3.82% 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 – 3.97% with a lender’s arrangement fee of £999 |
| • Buy-to-let 2-year fixed rate at 60% LTV – 3.84% with a lender’s arrangement fee of £1,495 |
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 31.03.28 | £999 | YES |
| 5-year offset fixed – 4.50% to 31.03.31 | £999 | YES | |
| 2-year fixed – 3.82% to 31.12.27 | £999 | YES | |
| 5-year fixed – 3.97% to 31.12.30 | £999 | YES | |
| 75% | 2-year fixed – 3.91% to 31.12.27 | £999 | YES |
| 5-year fixed – 4.06% to 01.12.30 | £895 | 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 = 4.36% | £1,499 | NO |
| 75% | 2-year tracker – 0.23% + BEBR = 4.48% | £1,499 | NO |
Buy-to-lets, Second Charge, Bridging Finance, Equity Release Loans available – rates upon request
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.