You are here: Home - News -

The aftermath of the August rate cut: Ying Tan’s BTL Market Monitor

by: Ying Tan, managing director, Buy to Let Club
  • 01/09/2016
  • 0
The aftermath of the August rate cut: Ying Tan’s BTL Market Monitor
As the much anticipated and historic rate cut was finally delivered by the Bank of England, Ying Tan, managing director of The Buy to Let Business, reflects on the impact on August's buy-to-let market.  

Well, we knew it was coming, didn’t we? Sure enough, after months of speculation, the Bank of England’s Monetary Policy Committee announced on 4 August that it was cutting the base rate from 0.5% to a record low of 0.25% and in doing so turned a traditionally sleepy August into a criteria-changing frenzy.

In a move that will no doubt be met with delight from tracker-rate and Standard Variable Rate (SVR) mortgage holders, a number of lenders were quick to pass on the rate cut to their customers.

TMW announced that from 1 September, all variable rate mortgages indexed to the base rate would be reduced by 0.25%. It’s the same date Virgin Money will reduce its rates, taking its buy-to-let variable rate to 4.74%.

Skipton also introduces the rate reduction from the start of September, and says the rate cut will mean its UK expat three-year discount mortgages (for mortgages over £300,000) will now be at its lowest ever buy-to-let expat rate of 2.99%. The society also announced cuts of up to 0.50% on its fixed-rate buy-to-let range, effective from 19 August.

Santander brought in its 0.25% reduction of tracker rates earlier, with the change coming into play from 9 August.

Elsewhere, Aldermore launched a limited edition range of five-year fixed rate buy-to-let mortgages for private individuals including a rate of 3.18% up to 70% loan-to-value (LTV) (loans up to £1m) and 3.25% to 75% LTV (loans up to £600,000).

Precise launched its “new and improved” buy-to-let range earlier in the month. The range includes reductions to fixed rates and trackers and core buy-to-let fees reduced by 0.50% to 1.50% on all two-year and five-year fixed-rate products and all two-year tracker products.

Meanwhile, Accord launched a number of new three and five-year fixed-rate deals starting from 2.59% as well as extending the end dates on all its fixed-rate two and three-year products to 30 November.

There are 0 Comment(s)

You may also be interested in