Base rate cut paves the way for rate movements across the board – Armstrong

While we will have to wait for official announcements, we are already seeing some speculation emerging.

One of the most interesting developments for much of the market is the potential introduction of an annual property tax, which could replace both stamp duty and council tax. If this is introduced, it will be a once-in-a-generation reform that could have far-reaching implications across the market for both homeowners and renters.

We will have to wait a few months to understand what changes, if any, come into play, so let’s focus on the here and now and see what is going on with mortgage lenders and their offerings.

Buy to let

In response to the base rate cut, Fleet Mortgages is cutting rates on its lifetime trackers and two-year trackers by 0.25% across standard, limited company and house in multiple occupation (HMO)/multi-unit freehold block (MUFB) ranges. A standard lifetime tracker is now available up to 75% loan to value (LTV) with an initial rate of 5.25% (BBR plus 1.25%), a 2% fee and a free initial valuation. A standard two-year tracker is priced with an initial rate of 4.49% (BBR plus 0.49%) and is available up to 75% LTV with a 3% fee and free initial valuation.

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Buckinghamshire Building Society has reduced rates by up to 40 basis points (bps) across its limited company buy-to-let (BTL) and holiday let ranges, with pricing now starting from 5.79%. Highlights include a five-year fixed limited company BTL rate now at 5.99% (reduced from 6.39%) and a three-year fixed expat limited company BTL rate now at 5.89% (reduced from 6.19%). There is also a new two-year limited company BTL discount product available at 5.79% with a fee of £1,500, available up to 80% LTV.

Landbay added four five-year fixed Summer Special products to its range that come with free valuations. The products are available for remortgages and product transfers up to 75% LTV and are priced from 4.32%. They feature 3% and 5% fee options, no application fees and free administration. Landbay is also lowering its two-year fixed Summer Special products by up to 0.2% on both standard and product transfer variants up to 75% LTV.

HSBC has given landlords another reason to invest in sustainable properties by expanding its green home loan cashbacks to cover landlords. Its Energy Efficient Homes Cashback mortgage provides a payment of £350 on completion for purchases or remortgages of a property with an Energy Performance Certificate (EPC) rating of A or B. The cashback is now available across a selection of BTL mortgages and is paid on top of any other product incentives.

ModaMortgages announced eight limited-edition products this month, featuring flexible fees and a maximum LTV of 80%. In its single dwelling BTL range, the new two-year fixed products start at 4.54% with a 3% product fee, and five-year fixed products start at 5.34%. Options with a fixed fee of £1,999 are also available. For small HMOs and MUFBs with up to six bedrooms or units, the new two-year fixed products start at 4.64% and the five-year fixes at 5.44%. The maximum loan size for all these limited editions is £750,000.

Specialist residential

Metro Bank has refreshed its residential near prime and core propositions to provide more options for customers with a less-than-perfect credit profile. In the near prime range, the maximum LTV has increased to 85%, the maximum loan size has increased to £750,000 and both interest-only and part and part repayment methods are now available. For both the near prime and core ranges, higher limits for county court judgments (CCJs) and defaults have been introduced and utility and communication defaults are now ignored. There is also no cap on unsecured arrears if clear in the last three months.

Newcastle Building Society has launched Enhanced+, which is an evolution of its previous large loan proposition. Enhanced+ will deliver greater flexibility to customers, with loan sizes starting from £450,000 and up to £3.5m (65% LTV), an extension to 90% LTV and increased loan amounts across all LTV tiers, higher loan-to-income (LTI) multiples and bespoke underwriting for clients with non-standard income streams.

That’s all for now. See you next month.