What’s been happening in the mortgage market this week? We hate to sound like a broken record, but while fixed rates continue to flood the market, lenders are still offering some of their best deals yet for buy to let mortgages. In line with this, perhaps the most notable product released onto the market was from Skipton, who revealed a 5 year fixed rate exclusive to expats buying to let in the UK. Yet Skipton wasn’t the only lender to expand its offering across the market and launch new buy to let products, as the likes of TSB and Santander have also now reduced buy to let rates on their existing ranges. We’ll be taking a look at these, as well as a brand new 10 year offset mortgage now available from Coventry Building Society and some of the best 2, 3 and 5 year fixes on the market.
Skipton International’s new product is a 5 year fixed rate at 4.49%, available up to 75% loan to value (LTV) with a £999 application fee. As part of the lender’s expansion in its expat buy to let criteria, this offer now allows self-employed borrowers to access products if they have an income of £60,000 a year, or £75,000 in an equivalent currency. The lender has also reduced a selection of existing buy to let fixed rates by up to 0.34%, including 2 and 5 year fixed rate deals from 60% to 75% LTV. 2 year fixed rates at 1.99% are also available up to 60% LTV, at 3.81% up to 70% LTV with no fees, or at 2.75% and 3.81% to 75% LTV respectively, with a £995 product fee.
Santander has also been applying changes to its buy to let fixed rate range, having reduced rates by up to 0.3% on a selection of 2 year fixes. These now include a 2 year fixed rate at 1.99% up to 60% LTV with a £1,995 booking fee, or 1.89% with a 1.5% booking fee. A rate of 2.49% is also available up to 75% LTV also with a £1,995 booking fee, or 2.39% with a 1.5% fee.
Another big high street name to be similarly reducing rates is TSB, where landlords can now benefit from a rate reduction of up to 0.35% on a selection of 2, 3 and 5 year terms. 2 year fixes have now dropped from 4.09% to 3.79% for 90% to 95% LTV, as well as adding a new 3 year fix at 3.98% for the same LTV with a £995 fee to the range. The lender has also reduced rates on residential mortgages, including those for homemovers and remortgages, as well as its existing 2 year tracker product.
As far as fixed rate mortgages are concerned, 3 year terms have increased in popularity recently, largely because of the balance they can offer to many borrowers. Whereas 2 year fixes offer low rates but limited security and 5 year fixes often the opposite, 3 year fixes have become increasingly competitive. The current best-buy 3 year fix on the market comes from Newcastle Building Society, now offering a rate of 1.99% up to 80% LTV available to home-buyers with a 20% deposit. This comes with a £199 reservation and £499 completion fee, which can be added to the loan.
HSBC has also released a new 3 year fix of 2.04% up to 80% LTV, which comes with scheme fees of £1,172. A 3 year fix is also available at 1.79% for borrowers with a 40% deposit for a fee of £1,499 from The Co-operative Bank.
Meanwhile, Newcastle Building Society and Aldermore Bank have both launched new fixed rate products this week, as borrowers continue to look to lock into deals with lower repayments. Newcastle revealed a new 5 year fixed rate with a maximum LTV of 80% at 2.6%, with a £199 reservation fee and £800 completion fee, or 2.69% with no fee. Aldermore has also revealed a limited edition 2 year fixed Residential Owner Occupied product at 3.38% up to 75% LTV or 3.68% for 80% LTV. This is available immediately for purchases and remortgages with a £999 completion fee and marks the lowest 2 year fix on record for the lender.
In the background, there has been a lot of movement between lenders, with, for example, London Money announcing its launch into the second charge space. As well as this, Complete FS has also been taking steps to build closer relationships with distributors in the market and has now added Kensington to its lending panel. Now offering Kensington’s core range of residential and buy to let mortgage products, as well as a 90% LTV semi-exclusive residential product, rates will start at 4.89% for a 2 year fixed rate or 5.19% for a 3 year fix.
Finally, Coventry for Intermediaries has announced a unique 10 year fixed offset range, allowing customers to secure a competitive rate available at 65% LTV. Currently the only product of its type on the market, this comes with a rate of 3.19% at 65% LTV for a £999 arrangement fee, which includes a remortgage transfer service at no additional fee. The lender is also offering a 10 year fixed residential rate of 2.99% at 65% LTV, which includes valuations of up to £670 for residential mortgages.
Although the aforementioned rates are indicative of current market activity, private lenders will not publish their rates, so we are restricted in our ability to relay this information. Yet we should emphasize the fact that their rates are often much more competitive.
If you have any questions on this week’s mortgage rate updates or market activity in general, please feel free to contact one of our expert brokers who will always be happy to discuss your options. Alternatively, you can stay on top of the latest mortgage rates and industry news with our daily rate updates.