Property & Mortgage Outlook – May 2021
Share
March was a pivotal month for the UK property market after a period of hesitancy amongst sellers since the start of 2021 and the third national lockdown.
The stamp duty extension continued to boost sales activity, which increased sharply over the month, particularly in London and the Country markets.
Best Buys* (as of 29th April 2021)
| Initial Rate | Description | Subsequent Rate | Overall Cost For Comparison (APR) | Early Repayment Charge | Max Loan | Fee |
| 1.05% | 2 Year Fix | 3.35% | 3.00% | 3% Years 1 & 2 | £1.5m | £1,249 |
| 1.19% | 5 Year Fix | 3.35% | 2.50% | 5% Years 1 – 5 | £1.5m | £1,249 |
| 1.39% | 2 Year Fix – Offset | 4.49% | 3.90% | 2% Year 1, 1% Year 2 | £2.0m | £999 |
| 1.19% | 2 Year Fix – BTL | 4.74% | 4.30% | 1.5% Year 1, 1% Year 2 | £1.5m | 2% of loan |
BASE RATE UNCHANGED UNTIL 2025
Recent research by Capital Economics suggests that the UK bank base rate will remain at 0.10% for the next four years. In this unprecedented interest rate environment it is important to consider the market expectations before choosing a mortgage product. Our mortgage partner set all of their advice against a backdrop of informed interest rate commentary putting you in the most informed position possible before making a decision.
HOLIDAY HOMES
Due to the current overseas travel restrictions, there has been an increase in holiday home purchases in the UK. Our partner has market-leading residential products available for clients looking to rent properties for no longer than sixteen weeks. They also have a semi-exclusive lender who will lend to limited companies and even a ‘bridge to renovate’ option. Here, a property can be purchased and renovated with roll up of interest until ready to rent and then converted to a standard mortgage.
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.
Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.
Your home may be repossessed if you do not keep up with payments on your mortgage.
You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.
Source: Professional Mortgage Services.
Share
Other News
Six Ways To Use Your Money For Good
There are multiple ways to make a positive social impact with your money. Here are six of the most common that you may wish to consider, that your Finura financial planner can help you to implement.
Stamp Duty Land Tax – Higher Rates For Additional Dwellings
Stamp Duty Land Tax (SDLT) rates for additional residential properties have been increased from three percentage points above the standard residential rates of SDLT to five percentage points above the standard residential rates of SDLT for any transactions which take place on or after 31 October 2024.
Below is a summary of the rates which applied from 23 September 2022 – 30 October 2024 to additional properties versus the new rates with effect from 31 October 2024.
Lifestyle Modelling: The Crystal Ball for Your Financial Future
Have you ever found yourself asking “When can I afford to retire?”, “Can I afford to leave a legacy for my loved ones?”, “How much do I need to be saving for retirement?”. If you have, lifestyle modelling will likely be beneficial for you.