The big announcement for the housing market in last month’s budget was a welcome extension to the SDLT holiday – see more below.
The second major announcement was a guarantee scheme for lenders offering 95% mortgages.
Activity levels picked up over February, with demand being consistently stronger than supply, supporting price growth.
|Initial Rate||Description||Subsequent Rate||Overall Cost For Comparison (APR)||Early Repayment Charge||Max Loan||Fee|
|1.09%||2 Year Fix||3.35%||3.00%||3% Years 1 & 2||£1.5m||£1,499|
|1.19%||3 Year Fix||3.59%||3.00%||3% Year 1; 2% Year 2; 1% Year 3||£1.0m||£1,495|
|1.19%||5 Year Fix||3.59%||2.70%||5% Year 1, reducing to 1% Year 5||£1.0m||£1,495|
|1.19%||2 Year Fix – BTL||4.74%||4.30%||3% Year 1, 2% Year 2||£1.5m||2%|
The chancellor, Rishi Sunak, provided a boost to the UK housing market by extending the stamp duty holiday until the 30th June 2021 and then tapering until the 30th September 2021. Although tight, there is still time to beat the deadline. With help from our mortgage partners, we can ensure a fully packaged mortgage application is processed and approved in days and choose lenders who will accept search indemnity insurance to avoid legal delays.
Many lenders have tightened their criteria and Clients often find their existing banks either unable to assist or uncompetitive for loans over £1,000,000. There are a number of mainstream, specialist lenders and private banks who are comfortable with large loans so we are often able to arrange market leading rates on an interest only basis for high-net-worth individuals.
Many banks have dramatically reduced the maximum borrowing available on ‘buy to let’ which usually affects high value properties where yields tend to be a little lower. We have lenders who will allow Clients to ‘top slice’ where income is used to top up any shortfall in rent to achieve the level of borrowing required. Many higher rate taxpayers are now choosing to purchase their investment properties via a Special Purpose Vehicle (SPF).
Whether you are coming to the end of your mortgage product or keen to compare your current rate to the best available elsewhere, please contact your adviser who can put you in touch with our mortgage partners.
* Lending criteria restrictions apply to all products, always seek independent advice.
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Source: Professional Mortgage Services.
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