One way to protect against rate rises if we Brexit

Yes, we are all bored of talking about the EU Referendum and most people just want it over and done with now. But I am never one to let something like this stop me jumping on the bandwagon!

If we Brexit, there is a very strong likelihood that interest rates will go up.

Even if Bank Rate doesn’t move, the cost of funds on the money markets will creep up and this will in turn increase the cost of borrowing.

For many people protecting themselves against rate rises should a Brexit occur is difficult because they are locked into an existing deal with hefty Early Repayment Charges. If you are in this category and the initial term runs out before the end of the year, however, we might be able to help.

We currently have deals available where the mortgage offer is valid for six months.

So you can apply today, get your offer at the end of June, and then you have until the end of December to complete.

Once the offer is produced, the rate is secure and any changes in underwriting standards will not affect your mortgage as it has already been agreed.

With two year fixed rates starting at 2.24% and five year fixed rates years starting at 2.89%, this could a viable solution to make hay whilst the sun is still shining.

Alternatively, if want to maintain the status quo, consider voting to remain…

 

http://www.mortgagesforbusiness.co.uk/product/40062
Fixed at 2.24% for 2 years (to 30/09/2018) reverting to Bank of England Base Rate + 4.34% (currently 4.84%). For purchases and remortgages. Early Repayment Charge: 3% of the amount being repaid until 30/09/2017, then 1% until 30/09/2018 (All borrowers are able to make capital repayments of up to 10% of their total outstanding loan balance each calendar year without incurring an ERC). Overall Cost for Comparison: 4.7% APR. Loan to Value: 60% loan to value up to £1,000,000 loan amount. Lender Arrangement Fee: £1,995 added to loan. Broker Fee: A broker fee of £497 will apply (other fee options available). Repayment Options: Interest only or repayment. Rent to Interest Cover: The rental income must exceed 125% of the cost calculated at a rate of 4.99%. Minimum Income Required: No requirement.

http://www.mortgagesforbusiness.co.uk/product/40061
Fixed at 2.89% for 5 years (to 30/09/2021) reverting to Bank of England Base Rate + 4.34% (currently 4.84%). For purchases and remortgages. Early Repayment Charge: 5% of the amount being repaid until 30/09/2017, then 4% until 30/09/2018, then 3% until 31/03/2020, then 2% until 30/09/2021 (All borrowers are able to make capital repayments of up to 10% of their total outstanding loan balance each calendar year without incurring an ERC). Overall Cost for Comparison: 4.5% APR. Loan to Value: 60% loan to value up to £1,000,000 loan amount. Lender Arrangement Fee: £1,995 added to loan. Broker Fee: A broker fee of £497 will apply (other fee options available). Repayment Options: Interest only or repayment. Rent to Interest Cover: The rental income must exceed 125% of the cost calculated at a rate of 4.99%. Minimum Income Required: No requirement.

 

Take a look at other blogs from Jeni

What is a stress test and why do buy to let lenders use them?

What is top-slicing in buy to let world? 

Top 10 Best Buy to Let Mortgages 

Residential mortgages for self-employed

Residential mortgage lending to borrowers aged 85

  

 

Do get in touch if you'd like to know more at 0345 3456788

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