Trinity Financial’s Aaron Strutt provides an update on the mortgage market. Banks and building societies have started to offer sub-4% fixed rates again as the battle to attract mortgage borrowers ramps up.
Over the last few weeks mortgage rates have fluctuated but for the moment we seem to be on a downward trend. Halifax is the latest big bank to lower many of its home mover and first-time buyer rates. This follows Barclays price reductions on its house purchase rates by up to 0.48%.
The price gap between the rates charged for those with 40 percent deposits and 20 percent deposits has reduced. This is good news for borrowers keen to buy this year, especially as fixed rates with a 25% deposit start from 4.2% and fixed rates for those with 15% deposits start from 4.35%. The difference between two- and five-year fixes has also closed, so it is often only marginally more expensive to take a two-year fix rather than a five-year deal.
While it is excellent news that mortgage lenders have started to provide sub-4% fixes again, they are not always that easy to qualify for. Many applicants with a larger deposit will pay more often around 4.15% for a five-year fix.
Barclays has just launched a market-leading ‘Green Home’ five-year fix at 3.96% with an £899 arrangement fee. To qualify applicants must be buying a home with an energy efficiency rating of 81 or above or an energy performance certificate rating of A or B. The minimum mortgage loan size is £5,000 and the maximum loan size is £2 million. HSBC also offers a 3.98% five-year fixed rate for homebuyers with a £999 arrangement fee, applications need to be earning over £100,000 to qualify and have a 40% deposit. Nationwide's new 3.99% five-year fixed rate is available for remortgages between £300,000 and £500,000 and it has a £1,499 arrangement fee.
Here, you can check the energy certificate rating on your property.
More landlords putting properties up for sale
There was a spike in landlords selling their properties at the start of 2025 despite a record number of buy-to-let rates available.
Data on the This is Money website shows the proportion of landlords listing property for sale at the start of this year jumped by almost 50 percent compared to last year. In January, 25,049 previously rental homes were listed for sale, according to analysis by property data firm TwentyCi. This represents 17.4 percent of all new listings. The figures also revealed that the number of rental properties which were sold by landlords to owner occupiers in 2024 was 111,696.
More of Trinity Financial's clients have taken limited company buy-to-let mortgages rather than standard buy-to-let mortgages. They are also switching their existing portfolios to limited companies. Aldermore is one of the specialist lenders targeting landlords keen to remortgage property portfolios.
Many landlords are selling up at a time when there are more buy-to-let rates to choose from. According to data from Moneyfacts, rate choice was up 25% in February compared to the same month last year, at 3,560. This is the highest number since Moneyfacts records began in November 2011.
The landlord exodus results from a combination of higher mortgage rates, proposed changes to legislation such as the Renters' Rights Bill and higher taxation.
How much can you borrow?
Mortgage lenders use affordability calculators to determine how much applicants can borrow, based on income and expenditure. It is usually possible to borrow between four- and 5.5-times salary.
NatWest has just confirmed that for single or joint borrowers earning over £40,000 with a deposit of between 10% and 25% of the property value, the bank can issue a loan-to-income of up to five times salary. Applicants earning over £75,000 or £100,000 jointly and borrowing between 10% and 25% of the property value could get an even higher loan-to-income of up to 5.5 times salary.
Nationwide Building Society recently increased the minimum income requirement for first time buyers to access its six times salary mortgages from £35,000 to £40,00 for single applicants. Joint applicants will need to earn at least £55,000 to qualify for the higher income multiple.
First-time buyers are joining together to step onto the housing ladder. According to the latest analysis from Halifax, almost two-thirds (63%) of mortgage completions are in joint names (with two or more people).
How long do lenders take to issue a mortgage offer?
Banks and building societies take around two weeks on average to produce a mortgage offer, although some lenders are much quicker. In many cases and provided a valuer does not need to physically inspect a property, getting a same-day mortgage offer is possible. Nationwide for Intermediaries is taking an average of eight working days to produce a mortgage offer; Santander for Intermediaries is taking six days and Barclays for Intermediaries is taking ten days.
Contact Trinity Financial
At Trinty Financial, we help all types of borrowers, from first-time and next-time buyers to business owners and international clients seeking £1 million+ mortgages. Book a mortgage consultation by calling 020 7267 9399 or emailing [email protected]
