Following the Bank of England’s unsurprising decision to keep the base rate at 5.25% this month, we are still seeing reductions in lenders’ fixed rates. Barclays announced they were making reductions of up to 0.31% on 25 June, following cuts by NatWest, The Coventry and other smaller lenders. More lenders are expected to nudge their rates down over the next few weeks as speculation grows that the Bank may cut the base rate at the next meeting on 1 August. Eligibility criteria also continues to loosen, opening up more options for the self-employed, contractors and older borrowers.
Buy-to-let rates are at their lowest levels for quite some time, as are the rates used to calculate yields, meaning there are many more options for landlords.
- 2 year fixed at 60% LTV – 4.74% with a lender’s arrangement fee of £1499
- 3 year fixed at 60% LTV – 4.49% with a lender’s arrangement fee of £999
- 5 year fixed at 60% LTV – 4.32% with a lender’s arrangement fee of £899
- Buy-to-let 5 year fixed rate at 60% LTV – 4.32% 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 – 5.72% to 30.11.26 | £999 | YES |
| 5 year offset fixed – 5.22% to 30.11.29 | £999 | YES | |
| 2 year fixed – 4.67% to 30.09.26 | £899 | YES | |
| 5 year fixed – 4.23% to 30.09.29 | £899 | YES | |
| 75% | 2 year fixed – 4.74% to 30.09.26 | £899 | YES |
| 5 year fixed – 4.38% to 30.09.29 | £899 | 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 – 0.15% + BEBR = 5.39% pa | £999 | NO |
| 75% | 2 year tracker – 0.29% + BEBR = 5.54% | £999 | 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.
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.