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.

With the cost of finance falling, if you are one of the many now thinking about investing in the property market, why not take a look at some of the fabulous properties we have in our next auction at Phillip Arnold Auctions.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.

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