With inflation creeping up again in August, the prospect of a base rate cut in September is looking highly unlikely. However, rates are now substantially lower than they were a year ago, and the choice for borrowers continues to increase. Most predictions suggest rates will remain around their current levels for the remainder of this year, and although they may seem high compared to a few years ago, they are still historically at relatively low levels.
Buy-to-let rates remain at their lowest levels for some time and we are seeing more and more schemes aimed at “green” landlords with energy-efficient homes.
- 2-year fixed at 60% LTV – 4.22% with a lender’s arrangement fee of £899
- 3-year fixed at 60% LTV – 4.14% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.84% with a lender’s arrangement fee of £899
- Buy-to-let 5-year fixed rate at 60% LTV- 4.19% 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 – 4.79% to 30.11.26 | £1,995 | YES |
| 60% | 5-year offset fixed – 4.60% to 30.11.29 | £1,995 | YES |
| 60% | 2-year fixed – 4.22% to 31.12.26 | £899 | YES |
| 60% | 5-year fixed – 3.84% to 31.12.29 | £1,499 | YES |
| 75% | 2-year fixed – 4.43% to 30.11.26 | £999 | YES |
| 75% | 5-year fixed – 4.01% to 30.09.29 | £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 – 0.15% + BEBR = 5.15% pa | £999 | NO |
| 75% | 2-year tracker – 0.29% + BEBR = 5.29% | £999 | 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.