Base rate finally on the way down
Last month the Bank of England finally voted to cut the base rate by 0.25% to
5.00%, giving a boost to the entire property sector, from landlords to first-time
buyers and second-steppers. Mortgage rates had already come down in
anticipation of the move, with a number of 5-year fixed rates just under the 4%
mark.
There will be three further Bank of England meetings this year and the money
markets are anticipating one or possibly two more cuts. Inflation, however, is
reportedly starting to creep up again and that may give the Bank pause for thought.
Industry commentators are also warning that despite the prospect of a falling base
rate, ultra-low rates a thing of the past and that it will still be a shock for the many
borrowers currently coming off 5-year fixed rate deals.
Below is a selection of this month’s best buys from Moneyfacts.co.uk:
Two-year fixed rates: 4.54% from Yorkshire BS. Product fee £1,495.00. 75% LTV.
4.59% from first direct. Product fee £490. 60% LTV.
Three-year fixed rates: 4.49% from first direct. Product fee £490. 60% LTV.
4.49% from Yorkshire BS. Product fee £1,495. 75% LTV.
Five-year fixed rates: 4.24% from first direct. Product fee £499. 60% LTV
4.32% from Nationwide. Product fee £999. 60% LTV.
Discounted variable: 4.84% For 2 years. From Progressive BS. Product fee £0.
75% LTV.
4.85% For 2 years. From Reliance Bank. Product fee £1,094. 75% LTV.
BUY-TO-LET (BTL)
Best two-year fixed rate: 3.49% from The Mortgage Works. Arrangement 3.00%
Advance. 65% LTV.
Five-year fixed rate: 3.84% from The Mortgage Works. Arrangement 3.00%
Advance. 65% LTV
Best Discounted variable: 5.00% For 2 years. From Monmouthshire BS.
Arrangement 2.00% advance. 75% LTV.