Mortgage consultation At no Cost: On 21 March, decision to keep bank rate unchanged may lead lenders to reduce their fees

Bank of Ireland has announced that it will enhance certain Buy-to-Let (BTL) interest rates starting from tomorrow, the 27th of March. The starting interest rate for a two-year fixed rate buy-to-let remortgage at a loan-to-value ratio of 60% is 4.79%, with a charge of £995. For a five-year fixed rate, the starting interest rate is 4.59%. Aldermore has redesigned its Buy-to-Let (BTL) offerings and introduced two new five-year fixed rate packages for customers looking to remortgage. Additionally, the bank has reduced interest rates by 0.1 percentage points on some other arrangements.

The company is providing a remortgage option for a duration of five years, with no fees. The interest rate for this option is 5.89% for a loan-to-value ratio of 65%. Additionally, there is a five-year fixed rate option available at an interest rate of 4.89%, but with a 5% charge. This option also has a loan-to-value ratio of 65%. Accord, a subsidiary of the Yorkshire Building Society Group, is defying the prevailing trend of reducing interest rates by raising the rates on its two and three-year fixed-rate Buy-to-Let (BTL) product transfer packages.

These deals are intended for existing borrowers seeking a new interest rate. Starting from Thursday (28 March), the chosen offers will be increased by 0.05 percentage points. The prices for transferring a five-year Buy-to-Let (BTL) deal remain the same. Brokers and lenders are indicating that there is a growing probability of mortgage interest rate reductions by the summer. This would be a much-needed respite for borrowers who are currently facing difficulties. The Bank of England maintained the Bank Rate at 5.25% today, as anticipated by many. However, the vote within the Monetary Policy Committee, responsible for determining the rate, was divided.

Eight out of the nine committee members voted in favor of keeping the Bank Rate unchanged, while one member voted for a reduction of 0.25 percentage points to 5%. Nick Mendes, a broker at John Charcol, suggests that although a decrease in the Bank Rate may not occur until June or later, the trajectory of interest rates appears to be more definite now. The financial markets have responded favorably to the recent decline in inflation, prompting NatWest to promptly lower its five-year fixed rate offerings.

“I anticipate that other lenders will make similar actions within the next two weeks as confidence gradually returns to the market.” Given the current price, it is highly likely that we will witness the return of the top five-year fixed rates below 4% in the near future. Mark Harris, the CEO of SPF Private Clients, expresses optimism over the current situation: “Given the decrease in inflation to 3.4%, it is now appropriate for the individuals responsible for setting interest rates to demonstrate courage and take decisive action.” The available information indicates that we are moving gradually towards a reduction in interest rates. This would enhance borrower confidence and provide a much-needed stimulus to the housing sector.