It seems the silly season has come early in the mortgage market. Whilst the Brexit shenanigans morph into General Election campaigning and we start the usual debate around how to avoid the in-laws this year and whether it is still too early to see Christmas advertising everywhere, mortgage lenders have been battling it out for business.
What was also interesting was the fact that the Bank of England’s Monetary Policy Committee, (MPC) voted 7-2 to keep interest rates unchanged last week. The interesting part is that the dissenting two voted for an immediate rate cut. This will be interesting to watch over the next few weeks.
As a result of all this talk around rate cuts, we are seeing some incredibly low rates, with Virgin Money rocketing into the charts with a 5-year fixed-rate at just 1.46%, (3.50% APRC) to 65% LTV with a £300 Cashback for purchases and free legals and valuation for remortgages.
However, not to be outdone, Halifax has released a stunning 1.44%, (3.17% APRC) 5-Year fixed rate up to 60% Loan-To-Value. They also now have a variable tracker rate product priced at 0.98%, (3.69% APRC).
There are now an amazing twelve lenders with 5-year offerings below the 1.6% level. Even 10-year fixes are reaching an extraordinary level now, with Coventry Building Society at 2.2%, (3.09% APRC).
As for landlords and those looking at Buy to Let, there really is not much difference now as Santander release a product priced at 1.79% for a 5-year fixed rate to 60% Loan-to-Value, (3.68% APRC). They have also made some improvements to their BTL proposition reducing affordability rates and increasing maximum terms and ages.
Overall then, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.05%, (3.74% APRC) and 5-year fixes from 1.44%, (3.20% APRC) whilst variable tracker rates are around from 0.98%, (3.71% APRC).
Those looking at Buy-To-Let can still obtain products from just 1.35%, (4.69% APRC) for a 2-year fixed or 5-year fixes are available from 1.74% (3.68% APRC).