This week’s top headlines: Eight in 10 landlords plan to raise rents and mortgage rates hit three-year high.
Explore these and other key industry updates below:
Eight in 10 landlords plan to increase rents: Landbay
Landbay’s latest survey found that 83% of landlords plan to increase rents over the next year, compared to 75% previously, while 39% expect to sell at least one property.
Nearly six in 10 intend to refinance, with two- and three-year fixes being the most popular option, while confidence in landlords’ private companies has improved slightly despite ongoing uncertainty.
The results were collected before the budget increased tax on rental income, which could impact future investment plans.
Santander cuts some interest rates by 25 basis points but raises others
Santander is reducing specified mortgage interest rates by up to 25 basis points and increasing other interest rates by up to 13 basis points across product transitions and new business ranges.
The largest reductions affect two-year product moves, while the largest increases include one-year fixed product moves and select three-year deals for home movers and first-time buyers.
Barclays Bank is making selected cuts in interest rates on RISI and RIMO
Barclays is reducing selected residential purchase and remortgage rates from 3 November, with cuts of up to 20 basis points across two- and five-year fixed deals.
The changes include discounts on the Standard, Premier, Green Home and Great Escape products, which cover interest rates at different levels of loan-to-value with a range of product fees.
Monetary Policy Committee decision: The mortgage market supports raising the base interest rate
The Bank of England raised its key interest rate by 25 basis points to 4%, by an 8-1 vote from the Monetary Policy Committee, as it seeks to contain inflationary pressures.
Mortgage experts say the increase was largely expected and has already been reflected in fixed rate pricing, meaning further increases are unlikely, although borrowers on tracker and variable rate deals will feel the immediate impact and higher borrowing costs may impact market activity.
Halifax Intermediaries is reducing prices by up to 0.22%.
Halifax Intermediaries is reducing its interest rates on mortgages across its home move, first time buyer, remortgage, product move and additional progression bands by up to 22 basis points from 3 November.
The sales cover fixed-price and trackable products, while expiration and expiry dates have also been extended.
Halifax is also reintroducing a 3.99% two-year tracker for borrowers with a 40% deposit.
Monetary Policy Committee Preview: Interest rate hike expectations increasing
A Reuters poll showed that 54 of 63 economists expect the Bank of England to raise its key interest rate by 25 basis points to 4% on Thursday, the first increase since August 2023.
While some experts warn that higher interest rates could increase pressure on households, others believe the expected movement is already being reflected in mortgage pricing, with fixed rates starting to fall, and suggest the MPC may keep interest rates at 3.75% instead.
Nationwide discounts of up to 0.15%, TMW expands the company’s limited edition range
Nationwide is reducing fixed mortgage interest rates by up to 15 basis points across its first-time buyer, home move and remortgage products from 4 November, bringing the lowest rate to 4.89%, with some higher LTV tracker rates increasing by up to 10 basis points.
Meanwhile, The Mortgage Works is expanding its limited company buy-to-let range with a new two-year tracker and five-year fixed products for new and existing landlord customers, along with a slight price reduction on the existing five-year fix.
Landlords failed to secure the full rent hike in 72% of court cases
Nearly three-quarters of landlords failed to secure the full rent increase proposed in court cases in September, with only 28.4% receiving the required amount, according to Cyborg Finance.
However, 67.6% of cases still result in rent hikes, averaging £92 a month, or £1,104 a year, while court decisions take 91 days on average.
Mortgage rates reach three-year high as bank interest rates expected to rise: Moneyfacts
Fixed mortgage interest rates have risen to their highest level in three years ahead of an expected base rate rise from the Bank of England, with the average new mortgage rate reaching 5.89% and the average two-year fixed rate rising to 5.96%, according to Moneyfacts.
The lowest two-year lender interest rates are now 0.44 percentage points higher on average than in September, although interest rates could ease slightly if the Monetary Policy Committee signals a more stable interest rate outlook.
Tracking costs will rise by £369 if the base rate rises by 25 basis points: UK Finance
A 25 basis point increase in the Bank of England’s base interest rate could add up to £369 a year to average mortgage payments and £171 for standard variable rate (SVR) borrowers, according to UK Finance.
However, with 87% of residential mortgages at fixed interest rates, around 1 million borrowers will be directly exposed to this increase.
