Expert Knowledge & Professional Service

Nationwide Building Society and Barclays are the latest lenders to raise their mortgage rates. 

Nationwide has increased some of its fixed rates by up to 0.35% for its new borrower and existing customer product range. The building society provides some of the most generous first-time buyer mortgages, and it has a good selection of two-year fixed and tracker rates, plus five- and ten-year fixes. 

Barclays has also made a host of changes to try and manage demand for its mortgages. The bank has changed its rates twice in a week, with some fixes going up by 0.4%. Unfortunately, it has also pulled its market-leading seven-year fixes. 

Aaron Strutt, product director at Trinity Financial, says: “We are now at the stage where we are telling clients to get their applications in as quickly as they can to secure the mortgage rates we offer them. If they don’t send the documents we need, there is a reasonable chance the rate will go up, and they will end up paying more for their mortgage.” 

Call Trinity Financial on 020 7267 9399 to secure a faster mortgage offer or book a consultation 

Residental mortgage rates have been rising so much that they are now regularly either the same price as buy-to-let mortgages or, in some cases, even cheaper.  

Virgin Money for Intermediaries lowest buy-to-let let rate is 0.34% cheaper than its equivalent residential rate. Even though the arrangement fee is £1,000 more, it is still unusual for the buy-to-let rate to be so much cheaper.

HSBC buy-to-let rate is also 0.25% cheaper than its equivalent residential rate, and Barclays buy-to-let mortgages are nearly the same as its residential rates for those with a 40% deposit.  

Aaron Strutt, product director at Trinity Financial, says: "While many lenders have been raising the price of their most competitively priced fixed rates, lenders have not been raising their buy-to-let rates by the same margins. If you plan to purchase a buy-to-let property or refinance to switch to a better deal, there are some great options."

Furness offering 1.59% discounted buy-to-let mortgage rates 

Furness Building Society offers one of the lowest buy-to-let mortgage rates, priced at 1.59%, and it is available for property purchases and remortgages.

It is a two-year discounted rate with a 4.05% discount from the lender's 5.64% variable rate. Applicants will need a 40% deposit to qualify, and the maximum loan is £750,000. Early repayment charges apply. 

Representative Example: A mortgage of £200,000 payable over 25 years initially on a discount rate for 2 years at 1.59% and then on our BTL Mortgage Variable Rate (MVR) of 5.64% (variable) for the remaining 23 years would require 24 monthly payments of £266.34 and 276 monthly payments of £944.77. The total amount payable would be £468,338.94 made up of the loan amount plus interest (£466,898.94) an application fee of £995, a valuation fee of £355 a CHAPS Fee of £20.00 and a Mortgage Discharge Fee of £120. The overall cost for comparison is 5.3% APRC representative. 

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

Call Trinity Financial on 020 7267 9399 to secure a faster mortgage offer or book a consultation 

A host of banks and building societies have increased their mortgage rates on the back of the latest Bank of England base rate change. 

Nationwide for Intermediaries has raised selected fixed-rate mortgages by up to 0.30% across its new customer and existing borrower product ranges. It also increased its tracker rates by 0.25%. 

NatWest for Intermediaries has raised its property and remortgage rates twice in just over a week. In the first set of changes, some two- and five-year fixes were up by 0.35%, and they went up again by 0.15%.  

HSBC has increased selected fixed-rate mortgages by 0.25%, while Accord Mortgages has also increased rates across its entire residential range. 

Halifax for Intermediaries has made its ten-year fixes available to home movers and first-time buyers, rather than limiting them to remortgaging customers. 

Aaron Strutt, product director at Trinity Financial, says: “Over the last few months, there have been consistent rate rises, some of which have been quite significant. It is surprising rates are not more expensive given the scale of the changes. HSBC for Intermediaries has changed its mortgage rates at least 13 times this year. " 

What is the average price of a two-year fix? 

According to figures from Moneyfacts, the average price for a two-year fix moved to 3.03% this month. This is the highest rate Moneyfacts has recorded since March 2015, when the average two-year fix came to 3.06%, which means that the price has increased by 0.69% this year. 

Moneyfacts data also shows that overall product numbers have gone up, from 4,925 in April to 5,087. 

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation 

Aaron Strutt, product director at Trinity Financial, says: "If you are planning to get a mortgage, it is worth knowing many of the lenders are particularly busy at the moment. If you are in a hurry to secure finance, we can typically still produce faster mortgage offers through lenders like Halifax for Intermediaries.

"Our administration staff are finding the lenders have longer hold times on the phones. They are regularly waiting over an hour to check on the progress of applications but they are working hard to get mortgage offers issued as quickly as possible.  

"Some lenders have backlogs booking in property valuations, although if the application is deemed a lower risk, it may qualify for a speedy desktop valuation where a computer system works out how much the property is worth." 

Barclays for Intermediaries is offering one of the most competitively priced longer-term fixed-rate mortgages at 2.26%.  

Most borrowers tend to opt for two, three or five-year fixes when they take a mortgage, and they do not consider seven-year rates. Now that rates are set to rise, they are a decent option, especially if you plan to stay in your home.   

What are the details of Barclays seven-year fix? 

Barclays lowest longer-term rate is 2.26%, and it is available for property purchases and remortgages. It is fixed until 31 May 2029, and applicants will need a 40% deposit to qualify. The maximum loan is £2 million and 3% early repayment charges apply.

After the fixed period, the mortgage reverts to 3.49% over the Bank of England base rate (currently 4.24%), and there is a £999 arrangement fee.  

Aaron Strutt, product director at Trinity Financial, says: “There have been some significant rate increases recently, and the cheapest fixed rates have gone up a fair bit.   

“If you take a longer-term fix, it is important to understand how much it will cost to get out of the loan. Early repayment charges can be expensive."

Should I take a five, seven or ten year fixed rate mortgage?  

More banks and building societies are offering long term fixes, and despite the recent rate hikes, they are still competitively priced.

While it is impossible to predict the future, if you take a five, seven or ten-year fix, it is important you plan to stay in the property, and essential you do not expect to sell it any time soon. 

Representative example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a fixed rate basis until 31 May 2029 at 2.26% and then on a Bank of England base rate tracker (BoE plus 3.49%) currently 4.24% for the remaining 28 years, 1.94% would require 84 monthly repayments of £1,917.61 followed by 276 payments of £2,324.03. The total amount repayable would be £807,479/52 made up of the loan amount, plus interest (£306,480.27) and £1,999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 4% APRC representative.    

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.  Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage   

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation