Despite the Bank of England’s base rate cut to 4.5% in February, the market is struggling to see this cut filter through to borrowing costs. However, three lenders did launch some rates at just below the 4% mark for the first time in a while. There seems to be high uncertainty around inflation and the outlook for mortgage rates – but if looked at in context, rates are still historically very low. The property market remains buoyant, with house prices still predicted to increase by around 4% this year.
Despite the increased rates, lifetime mortgages are gaining in popularity and we are seeing lenders release more products and offering larger sums, giving homeowners greater flexibility to access funds. Rates start at about 6%, although they look set to increase due to rises in UK Gilt yields.
- 2-year fixed at 60% LTV – 4.14% with a lender’s arrangement fee of £1,499
- 3-year fixed at 60% LTV – 4.11% with a lender’s arrangement fee of £999
- 5-year fixed at 60% LTV – 3.99% with a lender’s arrangement fee of £1,749
- Buy-to-let 5-year fixed rate at 60% LTV – 4.33% 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 an interest-only basis up to 50% with sale of property as the repayment strategy | ||||||||
| LTV | Rate | Arrangement Fee | ERC | |||||
| 60% | 2-year offset fixed – 4.72% to 31.08.27 | £999 | YES | |||||
| 5-year offset fixed – 4.62% to 31.08.30 | £999 | YES | ||||||
| 2-year fixed – 4.14% for 2 years from completion | £1,499 | YES | ||||||
| 5-year fixed – 3.99% to 02.06.27 | £1,999 | YES | ||||||
| 75% | 2-year fixed – 4.24% for 2 years from completion | £1, 499 | YES | |||||
| 5-year fixed – 4.22% for 2 years from completion | £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 | |||||
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Buy-to-lets, Second Charge, Bridging Finance, Equity Release Loans available – rates upon request. |
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* 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.
BEBR = Bank of England Base Rate currently 4.50% 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.