blog mortgage118

Author: David Sampson

  • Foundation Unveils Limited Edition Resi Remo Products and Rate Cuts

    Foundation Unveils Limited Edition Resi Remo Products and Rate Cuts

    Foundation’s New Mortgage Products and Rate Cuts

    As of 16th April 2026, Foundation has launched new Limited Edition residential remortgage products and implemented rate cuts across its residential and buy-to-let (BTL) mortgages. The lender has introduced new F1 Limited Edition residential, remortgage-only products at 65% loan-to-value (LTV), available on both a two- and five-year fixed rate basis. The two-year fixed is priced at 6.09%, while the five-year is 6.24%. Both products come with a £595 fee, a free standard valuation and no application fee. Foundation has also made selected rate reductions across its wider residential range of 20 basis points.

    Furthermore, Foundation has reduced pricing across almost all of its BTL range by up to 25bps, with pricing now starting at 5.14%. This covers a number of F1, F2 and F3 buy to let products, including Standard, HMO, Large HMO, MUFB, Short-term Let, Holiday Let, Expats and Property Plus. Foundation director of sales Grant Hendry states that these changes are a response to recent improvements in market conditions.

    Impact on a Typical Remortgager

    Let’s consider a remortgager with a £250,000 repayment mortgage at 75% LTV. Previously, with a rate of 6.29% (20 basis points higher than the new rate), their monthly payments would have been £1,552. With the new rate cut to 6.09%, their monthly payments would decrease to £1,518. This results in a saving of £34 per month or £408 per year.

    For a remortgager opting for the five-year fixed rate product, with the same mortgage value and LTV, the monthly payments would reduce from £1,566 (at an old rate of 6.44%) to £1,532 (at the new rate of 6.24%). This represents a monthly saving of £34 or an annual saving of £408.

    Effect on a Typical Landlord

    A landlord with a £200,000 interest-only BTL mortgage could also benefit from these rate cuts. Previously, with a rate of 5.39% (25 basis points higher than the new rate), their monthly cost would have been £898. With the new rate cut to 5.14%, their monthly cost would drop to £858. This would result in a monthly saving of £40 or an annual saving of £480.

    Market Context

    These rate cuts come at a time when the UK base rate stands at 3.75% as of April 2026. Compared to the same period last year, when the base rate was 3.5%, it’s clear that the overall trend is towards higher rates. However, Foundation’s rate cuts provide some relief to borrowers in the face of this upward trend.

    These changes are particularly significant for the BTL market segment. With the introduction of new products and rate cuts, landlords can now access more competitive pricing, which could potentially boost the BTL sector.

  • UK Rental Market Stability Amid Rising Buy-to-Let Mortgage Rates

    UK Rental Market Stability Amid Rising Buy-to-Let Mortgage Rates

    UK Rental Market Trends in Q1 2026

    As of April 2026, the average advertised rent for homes outside London has remained steady from Q4 to Q1 at £1,370 per month, marking the first time since 2017 that rents have not increased quarter on quarter. In contrast, within London, rents rose by 0.7% from Q4 2025 to Q1 2026, reaching £2,736 per month, according to the latest index from Rightmove. Year on year, average rents outside of London are still 1.6% higher, and within the capital, they have risen by 1.4%.

    The average rental home now receives eight enquiries, down from 11 a year ago and significantly lower than the 29 at the 2022 peak. More than a quarter of rental listings have had their price reduced, the highest proportion for this time of year since Rightmove began recording this metric in 2012. Despite these changes, Rightmove reports no major signs of shifts in market dynamics ahead of the Renters’ Rights Act coming into effect on May 1, 2026.

    Supply and Demand in the Rental Market

    The number of available homes to rent is now 3% higher than a year ago, with supply at its highest level for this time of year since 2021. Despite the increase in supply, demand remains strong, with Chestertons head of residential Adam Jennings noting a clear pick-up in lettings activity, particularly towards the end of March 2026, with a noticeable increase in viewings and agreed lets.

    Impact of Rising Buy-to-Let Mortgage Rates

    The average two-year buy-to-let mortgage rate for a landlord with a 25% deposit is now 5.79%, up by 93 basis points from 4.86% before the war in Iran started. To put this into perspective, a landlord with a £200,000 interest-only buy-to-let mortgage would see their monthly cost rise from £810 to £965, an increase of £155 per month or £1,860 per year. This significant increase in borrowing costs for landlords may filter through to the market at a later stage, potentially putting upward pressure on rents.

    Market Outlook Amid Regulatory Changes and Global Events

    With the Renters’ Rights Act coming into force from May 1, 2026, there has understandably been some uncertainty among landlords. Despite this, the strength of demand seen in late March 2026 has provided reassurance, with many landlords continuing to see competitive levels of interest and strong rental values. The impact of the war in Iran on borrowing costs and the forthcoming Renters’ Rights Act will be key factors to watch in the coming months, as they could both have significant implications for the UK rental market.

  • HSBC Cuts Mortgage Rates: Impact on First-Time Buyers and Remortgagers

    HSBC Cuts Mortgage Rates: Impact on First-Time Buyers and Remortgagers

    HSBC Announces Significant Mortgage Rate Cuts

    As of 17th April 2026, HSBC has announced a significant reduction in its mortgage rates, with cuts of up to 34 basis points across its range. This includes a 29bps decrease for a two-year fixed at 60% LTV with a £999 fee, bringing it down to 4.80%. The fee-free equivalent at the same LTV has been reduced by 26bps to 5.02%. For those considering a five-year fixed at 90% LTV with no fee and £350 cashback, the rate has been cut by 31bps to 5.28%. A premier two-year fixed at 60% LTV with a £999 fee has also seen a 29bps reduction to 4.77%.

    Implications for First-Time Buyers

    For first-time buyers, these rate cuts could have a significant impact. A two-year fixed at 60% LTV with a £999 fee and £750 cashback has fallen by 24bps to 4.93%. A two-year fixed at 90% LTV with no fee and £500 cashback has reduced by 25bps to 5.49%. A five-year fixed at 85% LTV with no fee and £500 cashback has decreased by 28bps to 5.21%. For a first-time buyer considering a £200,000 mortgage at 90% LTV, this 25bps reduction could decrease monthly payments from £1,035 to £1,010, saving £25 per month or £300 per year.

    Effects on the Remortgage Market

    In the remortgage range, a two-year fixed at 60% LTV with a £999 fee has fallen by 28bps to 4.90%, while a fee-free two-year fixed at 75% LTV has reduced by 29bps to 5.30%. A five-year fixed at 60% LTV with no fee has decreased by 33bps to 4.96%, while the equivalent at 75% LTV has also fallen by 33bps to 5.03%. For a homeowner with a £250,000 repayment mortgage at 75% LTV, this 33bps rate cut reduces monthly payments from £1,432 to £1,389, a saving of £43 per month or £516 per year.

    Market Context and Lender Confidence

    The current base rate stands at 3.75% as of April 2026. HSBC’s rate cuts, which are the most significant we’ve seen in the last six months, indicate a growing lender confidence in the market. This move by HSBC is a clear sign that lenders are starting to regain confidence in the market, as noted by John Charcol mortgage technical manager Nicholas Mendes. The rate cuts across HSBC’s mortgage range, particularly in the buy-to-let remortgage range where a five-year fixed at 60% LTV with no fee has reduced by 34bps to 5%, suggest a positive outlook for both first-time buyers and those looking to remortgage in the current market.

  • Buckinghamshire Building Society Launches New Fixed Rate Mortgages

    Buckinghamshire Building Society Launches New Fixed Rate Mortgages

    Buckinghamshire Building Society Introduces New Mortgage Products

    As of 16th April 2026, Buckinghamshire Building Society has launched a new suite of two-year fixed rate mortgages across its Credit Revive and Credit Restore ranges. The Credit Revive products include a two-year fix up to 70% loan-to-value (LTV) with a rate of 6.09% and a two-year fix up to 85% LTV with a rate of 6.39%. The Credit Restore products offer a two-year fix up to 60% LTV at a rate of 6.59% and a two-year fix up to 75% LTV at a rate of 6.89%. All these products come with a £999 product fee.

    Real-World Impact of the New Mortgage Products

    Let’s consider a first-time buyer looking to purchase a property valued at £300,000. If they opt for the Credit Revive two-year fix up to 85% LTV product, they would need a deposit of £45,000 (15% of the property value). The remaining £255,000 would be financed by the mortgage at a rate of 6.39%. This would result in monthly repayments of approximately £1,601.

    On the other hand, if the same buyer chose the Credit Restore two-year fix up to 75% LTV product, they would need a larger deposit of £75,000 but would benefit from a lower interest rate of 6.89%. The mortgage amount would be £225,000, resulting in slightly lower monthly repayments of approximately £1,548.

    Comparing the New Products to the Market Context

    Compared to the current UK base rate of 3.75% as of April 2026, the rates offered by Buckinghamshire Building Society are significantly higher. However, these products are specifically designed for clients who may have experienced financial setbacks in the past and are looking for payment certainty, as stated by Claire Askham, Buckinghamshire Building Society’s head of mortgage sales.

    When compared to rates from six months ago, these new products represent a slight increase. However, they offer a level of stability in an uncertain market, as the rates are fixed for two years. This means that borrowers can plan their finances with certainty, knowing their mortgage repayments will remain the same for this period.

    Implications for the Mortgage Market

    The introduction of these new products by Buckinghamshire Building Society indicates a commitment to providing options for a wider range of clients, including those with less than perfect credit histories. This is a positive development for the mortgage market, as it expands the options available to potential homeowners.

    Furthermore, the fixed rates provide a level of predictability in a time of economic uncertainty. With these new products, Buckinghamshire Building Society is providing a valuable service to a segment of the market that is often overlooked by other lenders.

  • TSB and Other Lenders Cut Mortgage Rates: Impact on First-Time Buyers

    TSB and Other Lenders Cut Mortgage Rates: Impact on First-Time Buyers

    Mortgage Rate Changes Across Multiple Lenders

    As of 15th April 2026, TSB has become the latest lender to reprice, with rates being cut by as much as 0.45%. The bank has lowered residential two-year fixed house purchase rates by up to 0.45%. However, product transfer residential two- and five-year fixed rates between 0% and 90% loan-to-value (LTV) are being increased by up to 0.15%. Buy-to-let (BTL) two- and five-year fixed rates between 0% and 75% LTV are also up by up to 0.15%. Additional borrowing on all residential and BTL fixes will go up by as much as 0.15%.

    Following suit, Santander will reduce rates across its higher LTV products, effective 16 April. These include all 85% to 95% LTV two-year fixed, first-time buyer products by up to 0.28%. Other first-time buyer rate decreases include the 90% LTV two-year tracker rate, which is being cut by 0.30%, while all 75% LTV 10-year fixed rates are being lowered by up to 0.15%. For home movers all 60 to 95% LTV two-year fixed rates are being cut by up to 0.28% and all 60% to 95% LTV two-year tracker rates are being lowered by up to 0.25%.

    Atom bank has also made interest rate cuts across its near prime mortgage range. All near prime products, for both purchase and remortgage purposes have been reduced by 0.20%. Fleet Mortgages has made rate reductions of 20 basis points on its range of 75% LTV two-year fixed-rate mortgage products. Coventry for Intermediaries has announced product changes, effective 16 April. Residential rates for new borrowers will be lowered across all two-year fixed exclusive first-time buyer rates at 65% to 86% LTV and all three-year fixed exclusive first-time buyer rates at 65% to 75% LTV.

    Real-World Impact on First-Time Buyers

    Let’s take the example of a first-time buyer looking at Santander’s 90% LTV two-year tracker rate, which is being cut by 0.30%. On a £250,000 repayment mortgage at 90% LTV, the monthly payment at the old rate of 5.20% would have been £1,382. With the new rate of 4.90%, the monthly payment drops to £1,321. This equates to a saving of £61 per month or £732 per year. This is a significant saving for first-time buyers, especially considering the financial challenges of stepping onto the property ladder.

    Market Context and Comparison

    These rate cuts come in the context of a UK base rate of 3.75% as of April 2026. Six months ago, the base rate was 3.50%, indicating a slight upward trend. However, lenders are responding to easing in swap markets, leading to these rate reductions. For instance, two-year SONIA swaps have fallen from 4.111% to 4.000%. This is a positive sign for borrowers, as it shows lenders are not simply holding back and defending pricing.

    For first-time buyers, these rate cuts could make mortgages more affordable. Compared to a year ago, when the average two-year fixed rate for a 90% LTV mortgage was around 5.50%, the current rates represent a significant reduction. This could potentially enable more first-time buyers to enter the housing market, contributing to its overall health and stability.

  • UK Landlord Exodus Slows as Rental Sell-Offs Plunge

    UK Landlord Exodus Slows as Rental Sell-Offs Plunge

    Landlord Exodus Slows Down

    As of April 2026, the proportion of landlords selling off their former rental properties has nearly halved in the past year, indicating a slowdown in the wave of buy-to-let exits that has marked the private rented sector in recent years. This is according to the latest Property & Homemover Report from TwentyCi. The percentage of homes coming to market that were previously rented dropped from 22.5% in Q1 2025 to 12.4% in Q1 2026, representing a year-on-year reduction of 45%. This decline was observed across the UK, with London recording the most significant fall of 51%.

    Of the properties sold in Q2 and Q3 2025, only 6% outside London were subsequently re-let, rising to 11% in the capital. This suggests that most are likely being absorbed by owner-occupiers rather than other investors.

    Broader Housing Market Stability

    The broader housing market has made a relatively stable start to 2026. New listings have increased by 5.1% year-on-year. Transactions were down 3.9% compared with last year but up 10.7% on Q1 2023 and 19.2% on Q1 2024, once the distorting effect of last year’s stamp duty deadline is taken into account. Colin Bradshaw, chief executive of TwentyCi, stated that the market was ‘continuing to tick along nicely’ despite global disruption. However, he noted some initial cooling in London and the South East as fixed mortgage rates have moved back above 5%.

    Buyer enquiries fell sharply in March, mortgage pricing has become more volatile, and inflation concerns are prompting the Bank of England to hold rates rather than cut. The report expects transactions in 2026 to be broadly similar to 2025 – around 1.2 million – but said the outlook depends on whether geopolitical pressures have a wider economic impact.

    Lettings Market Overview

    In the lettings market, the number of rental properties coming to market rose by nearly 19% year-on-year, while lets agreed increased by 5.8%. Average rents edged down 2% to £1,450 per month but remain close to record highs, with affordability still a significant constraint for tenants.

  • Winkworth Profits Dip in 2025 Despite Steady Revenue

    Winkworth Profits Dip in 2025 Despite Steady Revenue

    Winkworth’s Financial Performance in 2025

    As of 17th April 2026, Winkworth’s financial performance for the year ending 31st December 2025 shows a slight decrease in profit despite maintaining steady revenue. The company’s revenue remained relatively unchanged at £10.74m, compared to £10.79m the previous year. However, the profit before tax saw an 11% decline, amounting to £2.11m.

    Despite the dip in profit, Winkworth’s franchised network saw a 6% rise in revenues, reaching £68.7m. The sales income also experienced a boost, increasing by 10% to £35.8m, while lettings income saw a modest growth of 3%, totalling £32.9m. Sales accounted for 52% of total revenues, a slight increase from the previous year.

    Property Management Overtakes Lettings Income

    Interestingly, within the lettings figures, property management income saw a 9% growth to £17m, surpassing lettings income for the first time. This shift reflects both a reduction in the number of landlords in the sector and an increased demand from remaining landlords for fully managed services ahead of the Renters’ Rights Act. Property management accounted for 24.8% of network income, compared with 22.7% for lettings.

    Outlook for 2026 Amid Geopolitical Developments

    Looking ahead, Winkworth stated that early 2026 trading had been resilient, with sales registrations and agreed sales broadly in line with recent years. However, the company warned that the conflict in the Middle East had led to a sharp reversal in mortgage rates. Major lenders have raised fixed rates as swap rates rose on inflation concerns, reversing some of the affordability gains seen earlier in the year.

    Despite these challenges, Winkworth ended 2025 with a positive balance sheet, with £3.9m in cash and no debt. The company also increased its full-year dividends by 7% to 13.2p per share. Chief Executive Dominic Agace stated that while the outlook for 2026 is subject to geopolitical developments, the company continues to manage with the interests of its customers, franchisees, and shareholders at heart.

  • UK Mortgage Rates Dip for First Time Since War Outbreak

    UK Mortgage Rates Dip for First Time Since War Outbreak

    As of 17th April 2026, the UK mortgage market has seen a week-on-week decline in average fixed rates for the first time since the outbreak of the war in Iran. The latest data from Moneyfacts reveals a drop in the average three-year fix by 5bps to 5.5%, the average two-year fix by 3bps to 5.87%, and the average five-year fixed rate by 2bps to 5.76%.

    Significant Reductions in Some Product Categories

    Some product categories experienced more significant reductions. Average three-year fixes at 95% loan-to-value (LTV) fell by 13bps to 5.98%, and at 85% LTV, they dropped 9bps to 5.53%. Average two-year fixes at 70% LTV were also down by 9bps to 5.58%, and at 95% LTV, they fell 8bps to 6.4%. This downward trend is a positive shift for borrowers, especially those with smaller deposits.

    New High LTV Deals and Rate Cuts by Major Lenders

    Building societies have introduced a number of higher LTV deals, including new products at 98% LTV from Cambridge Building Society and 95% LTV ranges from Saffron Building Society and Leeds Building Society. Major lenders such as HSBC, Lloyds Bank, and Santander also reduced rates during the week. Other lenders, including Atom Bank, Halifax, TSB, and The Co-operative Bank, followed suit, while Kensington and Principality Building Society increased rates.

    Market Outlook

    Moneyfacts personal finance expert Rachel Springall notes that the rate reductions are a small yet positive step in the right direction. This trend follows recent swap rate moves, which are currently around 4%. Prior to the recent ceasefire in the Middle East, there were speculations of an interest rate hike by the Bank of England due to a projected increase in inflation this year. Borrowers will be keen to see if this positive momentum in rate cuts and new deal launches continues. Looking ahead, it will be interesting to see if Barclays, which has not adjusted its residential mortgage rates since the start of April, will decide to cut rates next week.

  • Atom Bank and Family Building Society Cut Mortgage Rates

    Atom Bank and Family Building Society Cut Mortgage Rates

    Rate Reductions Announced by Atom Bank and Family Building Society

    As of 17th April 2026, Atom Bank and Family Building Society have announced significant reductions in their mortgage rates. Atom Bank has cut its rates by up to 30 basis points across its prime mortgage range, while Family Building Society has reduced its rates by 25 basis points. These rate cuts follow HSBC’s announcement of a 34 basis point reduction, alongside similar moves by Coventry and Leeds.

    Atom Bank’s prime mortgage rates now start from 5.29% for borrowers with a deposit of at least 15%. Products with up to 85% loan-to-value (LTV) have seen a 20 basis point reduction, while 90% LTV products have seen a 25 basis point reduction. Rates for 95% LTV products have been reduced by 10 basis points. These reductions follow a recent 20 basis point cut across Atom Bank’s near prime range, reflecting improved swap market conditions.

    Family Building Society Reintroduces 60% LTV Products

    Family Building Society has also announced reductions in its owner occupier and buy-to-let ranges, as well as the reintroduction of products at 60% LTV. In its buy-to-let range, two-year fixed rates have been reduced by 25 basis points and five-year fixed rates by 15 basis points. Rates for existing customers, including product transfers and further advances, have also been reduced, with buy-to-let products decreasing by up to 25 basis points.

    Family Building Society’s head of intermediary sales, Darren Deacon, has attributed these rate reductions and the reintroduction of lower LTV pricing to relative stability in the Gulf, which has been reflected in market sentiment.

  • Landlords Expected to Sell 220,000 Rented Homes in 2026

    Landlords Expected to Sell 220,000 Rented Homes in 2026

    Landlords to Sell 5% of Private Rental Stock

    Pepper Money’s recent research reveals that approximately 220,000 rented homes are expected to be sold by the end of 2026, representing around 5% of the UK’s private rental stock. This significant reduction in rental properties is largely attributed to the upcoming Renters’ Rights Act, which will come into effect in May 2026. The Act is expected to influence landlords to withdraw over 65,000 households from the Private Rented Sector (PRS) in England by the end of the year.

    With only 5% of landlords having purchased a new rental property in the past year and subdued new starts in build-to-rent, it is unlikely that the exiting stock will be replenished at the same rate. This could result in a decrease in rental dwellings in 2026. The South East is expected to see the highest volume of dwellings exiting the PRS, with over 46,000 dwellings leaving the market. This represents over a fifth of all exits across the country, with 15% of all private landlords in the region planning to sell.

    Regional Rental Yields and Market Impact

    The North East, despite having a smaller number of rental properties, has the highest proportion of landlords intending to sell, with 21% planning to sell in 2026. However, this accounts for just 8% of total PRS exits nationally. The average rents in these regions highlight the potential market impact of these exits. In the South East, where rental demand is high, rents currently average around £1,893 per month. As such, the projected exit of over 46,000 homes could intensify competition and put further upward pressure on prices. Regional rental yields further explain landlord behaviour; in the South East yields are relatively modest at around 6%, which may make property investment less resilient to increased regulation.

    In the North East, average rents are lower, at around £946 per month, yet the high proportion of landlords planning to sell signals significant regional shifts in landlord sentiment even in more affordable markets. Other regions, including the East of England (£1,649 pcm), South West (£1,473 pcm), and London (£2,716 pcm), also show elevated rents, underscoring widespread market pressures across England.

    Changes to Renters’ Rights and Energy Efficiency Standards

    From 1 May 2026, renters in England will see some of the biggest changes to their rights in decades. From late 2026, a Private Rented Sector Database will also be introduced, requiring landlords to pay to join. Looking further ahead, all privately rented homes are expected to meet new energy efficiency standards by 2030, meaning better insulation, lower bills and greener living for renters.