Mortgage News | moneyfacts.co.uk
keys icon

Mortgage News

Top Mortgage News

news icon
BTL mortgage market shows signs of recovery
Derin Clark

Derin Clark

Online Reporter
Published: 07/07/2020

Landlords looking for a remortgage deal and investors considering a buy-to-let (BTL) property will be pleased to see that the BTL mortgage market seems to be showing the first signs of recovery.

Indeed, research carried out by Moneyfacts.co.uk has found that since May, the number of BTL deals (fixed and variable) available at all loan-to-values (LTVs) has increased by 283, with the number of two year fixed deals increasing by 134 and the number of five year fixed deals increasing by 164. Saying this, while more competition has been entering the BTL market over the last two months, since May, the average rates on both two and five year fixed rate deals at all LTVs have increased slightly, however this could be due to higher LTV deals returning to the market and therefore pushing up the average rate.

 

2020 BTL mortgage product number analysis
  January March April May July
BTL product count - fixed and variable rates 2,583 2,897 1,887 1,455 1,738
Two-year fixed rates BTL - all LTVs 823 914 610 491 625
Five-year fixed rates BTL - all LTVs 879 1,000 695 480 644
2020 BTL average rates analysis
  January March April May July
BTL two-year fixed - all LTVs 2.82% 2.77% 2.71% 2.51% 2.61%
BTL five-year fixed - all LTVs 3.19% 3.24% 3.16% 2.94% 2.97%

 

"The mortgage market as a whole remains an evolving and complicated landscape, as the ongoing impact of the recent lockdown has affected product choice and rates,” said Eleanor Williams, finance expert at Moneyfacts.co.uk. “However, as our latest research shows, the buy-to-let sector has adapted well and there are indications that landlords may have cause for positivity."

In fact, with rates as low as 1.19% available in the BTL chart today, it seems that there are some highly competitive deals available to landlords. Saying this, the BTL mortgage market has not seen a harmonious return to pre-lockdown competition and landlords looking for a 60% LTV will have seen average rates rise since the beginning of the year, while 80% LTV rates have fallen.

Read More
news icon
Stamp duty could be removed on properties up to £500,000

It is reported that the Chancellor of the Exchequer, Rishi Sunak will announce this week changes to the levels of stamp duty paid on property in England. The announcement is expected to remove stamp duty on properties up to a value of £500,000 for between six months to one year. First-time buyers already enjoy stamp duty relief and do not need to pay stamp duty on their first property purchase up to £300,000 (£500,000 in London).


This new reduction aims to get the people of England moving again, following three months of house market stagnation due to the Coronavirus lockdown. However, factors such as a lack of mortgages at higher loan-to-values (LTV) and a backlog of valuations also need to improve to help unlock the housing market.
It is not yet clear if those purchasing a holiday let or a buy-to-let property will also receive a reduction in stamp duty. Currently, property landlords pay stamp duty on properties from £40,000 plus an additional 3% on each stamp duty tax band. A further saving on stamp duty could help those savers considering buy-to-let, due to it potentially generating better returns than the historically low rates currently available on standard savings accounts.

Read More
news icon
An interest-only mortgage could help ease financial pressure during pandemic

Mortgage borrowers financially struggling due to the Coronavirus pandemic and considering switching to an interest-only mortgage will find that the majority of deals offer an interest-only repayment option.

Research carried out by Moneyfacts.co.uk found that currently, 61% of all mortgage deals have an interest-only option, an increase from 48% in March 2020. In addition to this, the percentage of all deals offering a pure interest-only product has increased from 2% in March to 3% in July.

 

Mortgage market analysis
  Pure interest-only products Total number of residential mortgage products Number of products available with an interest-only option
March 2020 118 (2% of all deals) 5,231 2,533 (48% of all deals)
July 2020 77 (3% of all deals) 2,728 1,666 (61% of all deals)

Product counts exclude Standard Variable Rate mortgages, pure interest-only figures also exclude RIOs

Read More
news icon
Is a holiday let a good investment to top up your pension?

As more of us are expected to holiday in the UK this Summer and potentially into 2021, those looking at options to improve the returns on their savings might consider a switch to managing a holiday let property.


Income tax-relief benefits are no longer available to landlords, meaning that income tax at the applicable rate is due on any profits generated from the property. However, the current low interest rates make the potential of greater actual returns possible from property more attractive and a holiday let can offer specific advantages for the retired when compared to a buy-to-let property.

Read More
news icon
The best residential mortgage rates this week 03.07.20

This week, the Nationwide House Price Index revealed that house price growth has turned negative for the first time since 2012. Although the housing market is facing a challenging time at the moment, the mortgage market remains highly competitive among the lower loan-to-values (LTVs). For homeowners looking to remortgage or those with a substantial deposit, this means that there are some highly competitive deals available in the charts at the moment.

While the mortgage rate is important when choosing a deal, borrowers need to consider more than just the initial rate when looking for a mortgage. Factors such as fees, interest rate type and flexibility in a mortgage should also form part of the decision-making process. Borrowers who need help in deciding which mortgage is right for them should consult a mortgage broker.

Read More

Recent News

news icon
Mortgage payment holidays coming to an end – what are your options?

2nd July 2020

With mortgage payment holidays that were introduced to help those financially impacted by the Coronavirus pandemic starting to come to an end, we’ve taken a look at what options are available to consumers who have taken out a mortgage payment holiday

With mortgage payment holidays that were introduced to help those financially impacted by the Coronavirus pandemic starting to come to an end, we’ve taken a look at what options are available to consumers who have taken out a mortgage payment holiday

Read More
news icon
Would investing £40,000 into a BTL property offer better returns than a savings account?

1st July 2020

With saving rates falling and expected to continue the downward trend for at least the next six months, those with a lump sum of money may earn greater profits investing in a buy-to-let (BTL) property instead

With saving rates falling and expected to continue the downward trend for at least the next six months, those with a lump sum of money may earn greater profits investing in a buy-to-let (BTL) property instead

Read More
news icon
House price growth turns negative for first time since 2012

1st July 2020

June saw house price growth turning negative for the first time since 2012 and house prices have fallen by 1.4% month-on-month, the latest Nationwide House Price Index figures reveal

June saw house price growth turning negative for the first time since 2012 and house prices have fallen by 1.4% month-on-month, the latest Nationwide House Price Index figures reveal

Read More
news icon
Average 60% and 80% LTV rates fall – is it time to lock into a new mortgage deal?

29th June 2020

Mortgage borrowers on their lender’s standard variable rate (SVR) could save 2.5% simply by switching to a two year fixed rate deal

Mortgage borrowers on their lender’s standard variable rate (SVR) could save 2.5% simply by switching to a two year fixed rate deal

Read More

Search News

(showing 1 to 4 of 478) (showing 1 to 3 of 478) (showing 1 to 4 of 478)

Most Popular Mortgage News

news icon
Stamp duty could be removed on properties up to £500,000

6th July 2020

It is reported that the Chancellor of the Exchequer, Rishi Sunak will announce this week changes to the levels of stamp duty paid on property in England. The announcement is expected to remove stamp duty on properties up to a value of £500,000 for between six months to one year.

It is reported that the Chancellor of the Exchequer, Rishi Sunak will announce this week changes to the levels of stamp duty paid on property in England. The an

Read More
news icon
First-time buyers struggle to get mortgages with a 10% deposit

18th June 2020

First-time buyers who have been saving for a 10% house deposit will have seen the number of mortgage deals available to them fall by 40 overnight, with just 75 deals now available at a 90% loan-to-value (LTV)

First-time buyers who have been saving for a 10% house deposit will have seen the number of mortgage deals available to them fall by 40 overnight, with just 75 deals now available at a 90% loan-to-value (LTV)

Read More
news icon
The best residential mortgage rates this week 03.07.20

3rd July 2020

This week the Nationwide House Price Index revealed that house price growth has turned negative for the first time since 2012

This week the Nationwide House Price Index revealed that house price growth has turned negative for the first time since 2012

Read More
news icon
Lenders pull 90% LTV mortgages from the market

11th June 2020

This week, a number of high-profile mortgage lenders including Virgin Money, Accord Mortgages, Yorkshire Bank and Clydesdale Bank have withdrawn their 90% loan-to-value (LTV) deals from the market

This week, a number of high-profile mortgage lenders including Virgin Money, Accord Mortgages, Yorkshire Bank and Clydesdale Bank have withdrawn their 90% loan-to-value (LTV) deals from the market

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy