It may be time to come off the Tracker rates of Mortgage Express Rosinca Mortgages
Is now the right time to switch your buy-to-let mortgage from Mortgage Express (Rosinca Mortgages) variable Tracker to a Fixed Rate? Remortgage or Product Transfer.
Mortgage Trackers on the rise! Could this be the end of low interest rates for now?
I’m not going to pretend I’m an Economist but the warning signs are there for Tracker mortgage holders, even those with small loadings over Bank of England Base Rate such as Mortgage Express buy-to-let trackers.
You only have to enter your local shop or the petrol pump to see the sharp rise in inflation. A global divide of Nations stimulated by Brexit and the Ukrainian War has caused major disruptions to the supply chain; and the re-bound of pent-up consumer demand for goods following the reopening of the economy in 2021 post pandemic are sighted as the main causes for the increase. Whatever the drivers are inflation is real and currently running at around 8% with the papers saying it could reach 10% by the end of the year.
As a consequence The Bank of England Monetary Policy Committee (MPC) on 17th March 2022 chose for the third time in four months to increase the Bank Base Rate, this time to 0.75%, to dampen consumer spending.
This may be cheered by the long-suffering Savers but for the Tracker Mortgage Holders it’s starting to hurt so if you are one of them – read on – and don’t just sit on your hands!
Mortgage Express: Guard Against Rate Rises by Fixing Your Rate
Mortgage Express was a well-loved lender back in the day. They were pioneers: 100% mortgages; products without higher lending charges; flexible payments, and Limited Company Buy-to-lets were just some of their USPs. They were however predominantly known as a standard buy-to-let super juggernaut.
As part of the ill-fated Bradford and Bingley Group, their demise, like many other Lenders, was a result of the 2007 Banking Crisis, and this lead to their back-book of mortgage customers being serviced by Rosinca Mortgages.
Thousands of Mortgage Express buy-to-let customers will be on Bank of England Trackers with typical margins of 1.75% or 2.00% above Bank of England Base Rate and they must be seriously contemplating remortgaging in light of the interest rate rises.
Buy-to-let 5 Year Fixed Remortgage Rates
So what fixed rates are offer? Below gives details of the some of the remortgage rates currently on offer but don’t expect them to be there for long:
|Minimum value in your property||40% equity||25% equity||20% equity|
|Subsequent reversionary rate||4.74%||4.00%||5.54%|
|The total amount you must pay back, including the amount borrowed is||£370,539.00||£430,412.68||£543,844.00|
|Overall cost of comparison APRC||4.1%||3.6%||4.9%|
|Type and initial benefit period||Fixed to 31/05/2027||Fixed to|
|Lender valuation fee||£340||Free||£340|
|Lender booking fee||£Nil||£Nil||£Nil|
|Lender product fee||£995||£1,499||£995|
|Cashback from the Lender||£Nil||£Nil||£Nil|
|Basic legal costs||Payable||Free||Payable|
|Lender name||The Mortgage Works||Santander||The Mortgage Works|
|Our broker fee charge||From £499||From £499||From £499|
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* Rates as at 19/3/2022.
* Figures produced using Twenty7tec software.
* True Cost factors in the interest rate, mortgage set-up costs and any cashback rebates. It assumes the product fee is paid and is no greater than £2,500.
* The comparison is based on an assumed purchase price of £300,000 over a 25 year mortgage term.
* It looks at repayment method of “Interest only” for Buy-to-let.
* Eligibility will depend on your own personal circumstances.
Your Property is at Risk if you do not keep up with your mortgage repayments.
Niche Advice arranges mortgages and is not a Lender.