Lenders Reducing Selective Rates After Recent Bank of England Meeting

In response to the Bank of England's decision to maintain the Base Rate at 5.25% there has been significant activity in the mortgage market over the last 24-48 hours in both the Residential and Buy To Let sector.  Interestingly, while some lenders have chosen to decrease rates on higher LTV mortgages, others have opted to raise rates on lower LTV products.  This dynamic suggests that lenders are responding to specific market conditions and adjusting their strategies accordingly. Reducing rates on higher LTV mortgages may indicate a desire to attract more borrowers with smaller deposits or to stimulate activity in the housing market.

Nationwide's Buy-to-Let division, The Mortgage Works, has taken action by reducing rates across their fixed-rate product range for both standard and limited company mortgages. Notably, these rate cuts have enabled The Mortgage Works to introduce fixed rates under 4% for mortgages with a term of over 5 years and a Loan-to-value (LTV) ratio of 55%.

In addition to the above in the last 24 -48 hours we have seen the following changes across the market:

HSBC:

Decreased selected fixed rates at 90% and 95% LTV on two-, three-, and five-year terms for Residential Mortgages.
Increased selected rates for 60%, 70%, 80%, 85% LTV on two-, three-, five-, and ten-year terms for Residential Mortgages.
Reduced all fixed rates for both purchases and remortgages in Buy-to-Let Mortgages

Santander:

Decreased selected fixed rates by up to 0.21% for Residential Mortgages.
Decreased selected fixed rates by up to 0.12% for Buy-to-Let Mortgages.

Barclays:

Reduced selected fixed rates by up to 0.25%. 

Leeds Building Society:

Reduced selected fixed rates by up to 0.25%, although some experienced increases of 0.05%.

Gen H:

Reduced selected rates by up to 0.20%.

Aldermore (Buy-to-Let):

Reduced selected 5-year fixed rates by up to 0.10%.
Released new products at 65% LTV for both individual and multiple property mortgages.

Buy To Let Affordability Criteria  

Both Coventry Building Society and Leeds Building Society are implementing changes to their Buy-to-Let criteria aimed at facilitating borrowing for landlords. Specifically, they are reducing the reference rates used to assess rental income coverage for Buy-to-Let properties. This adjustment means that landlords may qualify for higher mortgages based on the same rental income.

By lowering the reference rates, these lenders are effectively increasing the proportion of rental income that can be used to support a mortgage application. This move is likely intended to attract more landlords and stimulate activity in the Buy-to-Let market.

It's always wise to seek professional advice when navigating the mortgage market, especially due to fluctuating rates. If you're considering obtaining a mortgage and want to ensure you make the best decision for your financial situation, it's recommended to reach out to a team of experienced mortgage consultants.

You can contact our team at Brooklyns Financial or call us directly at 01628 564631 to speak with one of our knowledgeable consultants. They will be able to guide you through the entire process, providing personalised advice and helping you find the mortgage that best suits your needs and circumstances.

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.