Mortgage update: Lenders slash rates in mortgage wars

Nationwide has unleashed the building society’s lowest ever mortgage fixed and tracker rates in a bid to grab market share from rival lenders.

Our mortgage partner, Hamilton Fraser Total Landlord Mortgages, reports on the latest mortgage rates and what this might mean for landlords.

Interest rates have dropped by 0.4 per cent – with the lowest dipping to 0.87 per cent for a two-year fixed-rate new mortgage or remortgage at 60 per cent loan-to-value with a £1,499 fee.

“Introducing sub-one per cent loans is a sign the mortgage market is becoming increasingly competitive and that more sub-one per cent deals will follow shortly from other lenders.” said Daniel Lee, Principal at Total Landlord Mortgages.

A typical borrower with a repayment mortgage of £200,000 over a 25-year term will pay £748 a month if the fee is added to the loan.

Other lenders with rates under one per cent include Barclays, NatWest and Royal Bank of Scotland.

Can landlords rent their property to family or friends?

Barely a week passes without a worried mum or dad speaking to us at Total Landlord Mortgages about renting a home to a child struggling to climb onto the property ladder.

Mortgage lenders have a strict rule about landlords renting buy to let property to family or friends. And often the terms of the loan bar letting to relatives.

But a lender has now stepped forward with the ideal solution – a family let mortgage at up to 75 per cent loan-to-value as a two or three-year fix. The deal has a 125 per cent stress test at 5.5 per cent and a tenancy agreement to complete.

“I know how much heartache this causes for families,” said Daniel Lee, Total Landlord Mortgages Principal, “I am thrilled that at Total Landlord Mortgages we can offer some help for families during these difficult times.”

Are you interested in finding out more about the new family let mortgage? Call Total Landlord Mortgages today on 0333 224 8918 to discuss your mortgage requirements or request a call back here.

Is it time for a buy to let mortgage review?

With mortgage interest rates at an all time low and new products continuously hitting the market, now is as good a time as any to review your buy to let borrowing.

Here at Total Landlord Mortgages, we have two great buy to let deals for landlords:

Deal 1

• For remortgaging a rental property
• 1.1 per cent two-year fixed rate
• Free legals
• Free valuation

Deal 2

• For remortgaging a rental property
• 1.59 per cent five-year fixed rate
• Free legals
• Free valuation

And what’s more, as a LandlordZONE reader or Hamilton Fraser customer you can get an exclusive discounted broker fee of just £250, this is a saving of 50 per cent! Call us today on 0333 224 8918 to discuss your requirements.

“With inflation rising and uncertainty on the horizon, I would urge landlords to seriously consider five-year fixed rates, especially if they have no intention of selling the property. With five-year rates as low as 1.59 per cent, it is almost too good an opportunity to miss.” said Daniel Lee, Principal at Total Landlord Mortgages.

Does your flat need an EWS1 fire safety check?

Relief is at hand for thousands of landlords trapped from selling or remortgaging apartments due to concerns about fire safety in blocks of flats following the Grenfell tragedy in June 2017.

The Government has scrapped the checks for blocks under 18 metres high following a review by a panel of independent experts. The experts confirmed cladding on the blocks did not present a high fire risk.

The decision opens the way for landlords to sell or refinance their apartments while freeing them from the cost of expensive remedial works.

But this isn’t all good news for landlords as in some cases, mortgage lenders are ignoring the guidelines and still asking for the EWS1 checks to be completed. EWS1 is the form that lets landlords know how safe the cladding is around blocks of flats.

One of Britain’s biggest lenders, Halifax, requires an EWS1 for any block with fire safety concerns raised by a surveyor.

“If we have received an EWS1 form for a building and the form states the cladding needs remediating before it is safe, we would not be able to lend on this property, and there is no appeals process. Only if a further EWS1 form was received to confirm remediation has been completed would we be able to proceed,” says a spokesperson from Halifax.

Other lenders, like HSBC and the Coventry Building Society, still require an EWS1 until the Government has withdrawn advice recommending fire safety checks on all blocks of flats.

The EWS1 check is part of an apartment’s valuation. The form covers a block of flats in England and Wales, but each apartment in a block needs a check in Scotland.

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