Following a turbulent year in the mortgage market, January started with a mortgage price war. HSBC were the first lender to launch a 5-yr fixed rate sub 4% at the start of the month, with other lenders following suit. Although borrowers looking to remortgage this year are likely to see an increase in their monthly costs, these should be lower than previously expected.
Buy-to-let rates have also reduced, which together with the easing of rates used to stress test rental yields, means more product options are available for landlords.
Three Fixed rates on the market at present:
- 2 year Fixed at 60% LTV – 4.27% pa with a lender’s arrangement fee of £999.
- 5 year Fixed at 60% LTV – 3.94% pa with a lender’s arrangement fee of £995.
- Buy-to-let 5 year fixed rate at 60% LTV 4.19% pa 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 | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2 year Offset Fixed – 5.15% pa to 30.04.2026 | £1,995 | YES |
| 5 year Offset Fixed – 4.90% pa to 30.04.2029 | £1,995 | YES | |
| 2 year Fixed – 4.27% pa to 30.06.2026 | £999 | YES | |
| 5 year Fixed – 3.94% pa to 30.06.2029 | £995 | YES | |
| 75% | 2 year Fixed – 4.38% pa to 30.06.2026 | £999 | YES |
| 5 year Fixed – 4.31% pa to 30.04.2029 | £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 | |||
|---|---|---|---|
| LTVs | Rate | Arrangement Fee | ERC |
| 60% | 2 year Tracker – 0.10% + BEBR = 5.35% pa | £1,499 | NO |
| 75% | 2 year Fixed – 0.29% + BEBR = 5.54% pa | £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 based on your 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.