Buy to let slows as mortgage rate offers begin to increase

Posted by Kelly Luff in Mortgages on 7 December 2016 - Kelly is a Marketing Executive at checkmyfile

In the last few years we have not only seen some historically low mortgage rates, but also a rush to make property investments. Now the tide may finally be turning, as lenders begin to increase their lowest mortgage rates, and buy-to-let figures drop in the wake of new regulations.

HSBC has now increased its lowest ‘cheapest-ever’ mortgage rate of 0.99% for two years by 0.5%, following on from other lenders gradually removing some of their most competitive products from the market. This perhaps signals that lenders are beginning to feel the jitters of a nervous post-referendum UK, particularly as warnings of increasing inflation in the New Year threatens to push people to tighten their belts.

David Hollingworth at broker London & Country Mortgages said, “The bottom of the market may have been hit. This [announcement] and the broader changes from HSBC, which has been very aggressively priced in the fixed-rate market, could spell the end of the sub-1% fixed rate, but also signals a potential turning point for fixed mortgage rates.”

Buy-to-let activity has also dropped away, to the tune of 18.5% as a series of Stamp Duty & tax changes has made the investment a less attractive proposition. Buy-to-let mortgages have also been tightened up by many lenders, with would-be landlords now needing a bigger deposit to secure their property investment.

With the announcement by the Chancellor that he will ban letting agent fees being passed onto tenants, there are further reasons for the buy-to-let money machine to slow its churn.

With buy-to-let slowing, there is every chance that this will be reverberated within the housing market, which has for some years now depended on buy-to-let investment to remain buoyant. This fact may also be impacting on the gradual increase in mortgage rates, as lenders await a house price slowdown and therefore slightly more risk on their side.

Check Your Multi-Agency Credit Report

30 Day Free Trial

How your credit file could help you get a good mortgage deal

There have been plenty of reasons to get people thinking about making that first leap onto the property ladder in recent months, including Help to Buy schemes, the removal of stamp duty charges for about 95% of first time buyers and an increase in affordable houses being built.

Published on 9 Aug 2018 by Kiah Phillips

Full Article

The best credit score for a mortgage

A lot of customers come to checkmyfile because they plan on applying for a mortgage – your Credit Report is, after all, the best place to start as it’s helpful on more than one occasion. But often the question is often raised: "what Credit Score will I need to get a mortgage for my dream home?”

Published on 8 Aug 2018 by Jamie Mackenzie Smith

Full Article

Last minute mortgage checks

When could a non-bankrupt person be considered bankrupt? When they’re buying a house.

Published on 17 Jan 2018 by Richard Catlin

Full Article

Guarantor loans can affect mortgage applications, lenders warn

Guarantor lenders are always keen to point out that you don’t need a credit report check to get their loan, just a friend or family member who has a good credit history and is able to act as a guarantor. For those with a poor credit rating, this type of loan provides a solution to a problem – they can afford the loan repayments but are unable to get credit due to prior adverse credit history.

Published on 9 Jan 2018 by Kelly Luff

Full Article

Homeownership among 25 year olds halved in 20 years

Homeownership among 25 year olds has more than halved in the last 20 years, according to a survey conducted for the Local Government Association (LGA). The study carried out by Savilles the estate agents found that only 20% of 25 year olds now own a home of their own, compared to 46% in 1996.

Published on 5 Jan 2017 by Erika Bone

Full Article

Housing Values Rise to 5.6 trillion

While housing prices have displayed a consistent rise over the past several years, according to a recent study conducted by Halifax, the total value of privately owned housing in the UK has exceeded £5.5 trillion for the first time.

Published on 14 Dec 2016 by Tom Magor

Full Article

First-time lenders can borrow against parent's home

In recent decades, the “bank of mum and dad” has increasingly become a cardinal resource for their offspring achieving independence and for first-time buyers attaining a foot on that all-important first rung of the property ladder.

Published on 9 Dec 2016 by Erika Bone

Full Article

Mortgage costs reach record low

The cost of obtaining a mortgage could be in reach for first-time buyers, as rates drop to a record low.

Published on 16 Nov 2016 by Simon Hadley

Full Article

Surge in House prices recorded in October

House Prices shot up in October, showing a monthly increase of 1.4%. This is according to Halifax’s house price index, which showed its largest monthly rise since March. The growth was well up on the 0.3% recorded by Halifax in September and is in contrast to the signs of a slowing housing market recorded in its index over the last 6 months.

Published on 10 Nov 2016 by Neil Greenhill

Full Article

Estate agents pay out as result of Ombudsman complaints

Estate agents have been warned that they need to raise their standards, as the Property Ombudsman had to step in to resolve more than 3,000 complaints in the last year.

Published on 7 Oct 2016 by Jasmin Stopford

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews