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Tag: Buy-to-Let

  • Cambridge Building Society Reintroduces Fixed Rate Mortgages

    Cambridge Building Society Reintroduces Fixed Rate Mortgages

    Cambridge Building Society Refreshes Mortgage Range

    As of 16th April 2026, The Cambridge Building Society has reintroduced a selection of fixed rate mortgages across its core product range. This move complements its existing discounted variable rate options. The updated range includes two- and five-year fixed rate mortgages, with products available up to 95% loan-to-value (LTV). The society also offers buy-to-let (BTL) and retirement interest only options.

    The new rates include a two-year fixed at 90% LTV with a rate of 5.59%, a two-year fixed at 95% LTV with a rate of 5.79% and a two-year fixed BTL with a rate of 5.54%. Additionally, there is a five-year fixed at 90% LTV with a rate of 5.69%, a five-year at 95% LTV with a rate of 5.89%, a five-year first step with a rate of 5.99% and a five-year RIO with a rate of 5.88%.

    Impact on First-Time Buyers

    Let’s consider a first-time buyer looking to secure a mortgage for a £250,000 property with a 90% LTV. With the new two-year fixed rate of 5.59%, their monthly repayments would be approximately £1,530. This is a significant commitment, but it offers the security of a fixed rate in a fluctuating market.

    On the other hand, if the same buyer opts for a five-year fixed rate at 5.69%, their monthly repayments would increase slightly to around £1,560. However, this offers a longer period of stability in terms of monthly repayments.

    Effect on Buy-to-Let Landlords

    For a landlord with a £200,000 interest-only BTL mortgage, the new two-year fixed rate of 5.54% would result in monthly interest payments of approximately £920. This is an attractive rate for landlords seeking a short-term fixed option for their investment properties.

    Market Context

    These changes come at a time when the UK base rate stands at 3.75% as of April 2026. The Cambridge’s new rates are higher than the base rate, reflecting the typical premium for fixed rate mortgages. However, these rates offer borrowers the certainty of fixed repayments, which can be a valuable benefit in an uncertain economic climate.

    Compared to six months ago, the rates offered by The Cambridge Building Society have increased, reflecting the general upward trend in the mortgage market. However, the reintroduction of fixed rate options provides more choice for borrowers, whether they’re first-time buyers, remortgagers or buy-to-let landlords.

  • 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 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.