Lenders continue to trim rates despite base rate hike
Despite the Bank of England increasing the base rate from 4% to 4.25% last week, a number of mortgage lenders have reacted positively and have continued the trend in making reductions across some products, including fixed and variable rates.
This comes amid greater competition for new business and an unprecedented drop in swap rates – the wholesale rates at which banks lend to each other and on which fixed mortgage rates are based – have dropped to their lowest since February.
HSBC has cut its fixed rates for residential borrowers by up to 0.2 percentage points and for buy-to-let customers by up to 0.3 percentage points. It follows a rate cut for high loan to value (LTV) customers at the end of last week.
Nationwide building society has reduced rates across its fixed and tracker mortgage range by up to 0.45%; a five-year fix starts at 3.94% (60% LTV). and NatWest has reduced its buy-to-let fixed rates by up to 0.27%, with a five-year fix (75% LTV) starting at 4.62%.
However, it must be stated that the Bank of England is still highly likely to increase the base rate further with forecasts predicting another 0.25% rate increase.
We are also seeing some lenders increase rates for some purchase and remortgage products and therefore with rates now having reached their lowest point in six months now might be the best time to remortgage or get a product transfer.
Take Action
If your current deal is coming to an end, we highly recommend you speak to us about fixed rate products and other options available to you. Moving to a standard variable rate is likely to be much higher than your current fixed rate product.
If you are wanting to secure peace of mind with fixed monthly repayments we can help, oftentimes 6 months before your fixed rate is due to expire.
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If you would like to discuss a mortgage on a new or current property, please use the Schedule a Call button or call and speak to our award winning team today on 0208 364 3444.
Rental arrears and void periods down across the UK
A recent report from a specialist lender The mortgage works reveals that void periods and rental arrears are both down on average across the UK. As a more optimistic outlook for the market returns.
The report found that in Q4, 32% of landlords in the UK faced rental arrears in the last twelve months, and just 24% experienced a void period in the last three months. Both stats are down from Q3 2022, when they were 34% and 28%, respectively.
Whilst this data may not show a substantial drop, it can reassure investors that the market is on the right trajectory.
Five outer London postcodes becoming new property hotspots
London’s outer fringes have seen a surge in homebuyer activity as lockdown leavers return to find the best of both worlds.
Market analysts Propcast found that the 10 hottest property markets across the capital last month were outside Zone 2, with buyers willing to accept longer commutes for countryside access and better-value housing than that found in inner London areas.
The highlighted areas are: DA18 Belvedere, RM7 Romford, RM9 Dagenham, E11 Wanstead, SM5 Carshalton.