First Signs of Rates Easing?

Yesterday, we saw the appointment of Rishi Sunak as Prime Minister. This was welcomed by housing experts who believe that it could bring down government borrowing costs and return some stability to the mortgage market. 

Many lenders had already begun to return to the market thanks to the quick actions of the new Chancellor, Jeremy Hunt, who eradicated nearly all of the previously announced tax cuts from the former mini-budget.

This week we have seen the first signs of what may be a new trend of a number of larger lenders actually reducing mortgage rates on key products including residential and buy to let. 

HSBC is reducing rates on five-year fixed mortgages for those with deposits of 25 per cent or more by up to 0.11 percentage points in the coming days. 

It means the cheapest rate on such a mortgage with the lender will be 5.37 per cent, down from 5.48 per cent previously.  

Virgin Money has also reduced rates, with the cheapest now 5.49 per cent. This is based on a five-year fixed rate for someone with a 25 per cent deposit, paying a £1,295 fee. 

Santander has also announced a number of rate reductions across its residential and buy to let offerings, reducing residential fixed rates by between 0.05% and 0.50% and all Buy to Let fixed rates by 0.05%.

It must be remembered however the Bank of England rate setting meeting is convened for next week Thursday 3 November with more rate rises feared.

How we can help
Rates are changing rapidly, however, there is no guarantee that deals will last and not be replaced with mortgages charging higher rates. 

We recommend you arrange to speak to one of our award winning mortgage brokers. They’ll be able to review your circumstances and provide you with options that suit you. 

If you would like to discuss your current mortgage or have a large portfolio that you’d like us to review, speak to a member of the team or our senior broker, Danny O’Keeffe on 0208 364 3444 alternatively schedule a call back by clicking on the button below.

Number of Buy to Let Companies Passes 300,000, Research Finds
The total number of companies set up to hold buy-to-let property has doubled since 2017 and now stands at over 300,000, according to research from Hampton’s Monthly Lettings Index. 

This growth has been primarily driven by existing landlords moving properties from personal to company names to reap the tax benefits.

UK Banks Pull Half of First-Time Buyer Friendly Mortgages After Mini Budget
Data from Moneyfacts shows that the number of new 95% mortgages stood at 137 on Monday.

That compares with 283 on 23 September and 353 on 1 December last year, which amounts to a near-52% fall in the space of a month, and a 61% fall since December 2021.

In more positive news for borrowers, Moneyfacts revealed that the number of new standard mortgage deals on sale was slowly creeping up: it stood at 3,067 on Monday, compared with 3,053 on Friday

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