It really is all about interest rates now as many economists are now giving a 90% chance of the Bank of England finally raising interest rates in November this year – probably up by 0.25%.
As a result, we have already seen SWAP rates and the cost of funds increase with 5-year money back over 1% once more. This is normally a prelude to mortgage lenders hiking their fixed rate products and we are seeing more people contact us about fixing in before this happens.
Interestingly however, the competitive pressure that is swirling around between lenders at the moment is still seeing some extraordinary rate cuts! Only last week we saw Platform come in with a mind-boggling 2-year fix at 0.99% up to 80% Loan-To-Value!
Rates like these cannot be around for long however, so it really does mean that prospective borrowers need to get in quick before they disappear.
This is also the last week before the latest Buy To Let changes come into play and from 1st October most landlords with 4 or more mortgaged properties will fall into a tighter lending criteria stream. As well as the normal mortgage documentation, they will need to provide proof that the rental income is accurately declared to the Revenue with tax returns and calculations.
They will also need to provide a full Portfolio spreadsheet, business plan and cash flow statement. Don’t worry, we at Coreco are primed to help make this process smooth and easy!
Rate wise, there are 2-year fixes available at 0.99%, (4.62% APRC) and 5-year fixes from 1.59%, (2.93% APRC) whilst variable tracker rates are around from 0.99%, (3.28% APRC).
Those looking at a Buy-To-Let can obtain products from just 1.28%, (4.01% APRC) for a 2-year fix.