Keeping doctors and dentists informed with the latest mortgage news and rates.
2015 was an exceptional year for the UK mortgage market, with record breaking low rates of interest and the highest levels of lending activity since the start of the financial crash in 2008. Will 2016 continue along the same track? Rates have already started to creep up in recent months, despite the Bank of England base rate expected to remain at 0.5% for a good while longer yet.
Read more, including this month’s BEST RATES here.
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Mortgages for doctors and dentists
View sample rates below – ACT NOW
Term | Type | Rate of interest |
---|---|---|
2 year | FIXED | 1.49% |
3 year | FIXED | 1.89% |
5 year | FIXED | 2.29% |
10 year | FIXED | 3.04% |
2 year | FIXED (Offset) | 1.74% |
2 year | 10% deposit | 2.24% |
2 year | 15% deposit | 1.79% |
2 year | FIXED - Buy-to-Let | 2.19% |
The average lenders Standard Variable Rate (SVR) is 4.49% at December 2015.
The mortgage outlook for 2016
It’s still early days, with the new year just passing, however, there are a few early predictions for the mortgage market in the next 12 months.
Buy-to-let
Initially, there is the ongoing situation regarding buy-to-let investment. With the increase of 3% Stamp Duty Land Tax (SDLT), many investors are looking to make their next transaction in the coming weeks, prior to the April deadline.
Others, due to the tax relief cuts and prospect of tighter mortgage lending are instead looking to exit the property investment market, at least for now, as their profit margins will be squeezed with the new legislation.
If you are considering a buy-to-let mortgage it is highly recommended to speak with a mortgage advisor as the decision won’t be as clear cut as it was in 2015 and before. However, opportunities remain for investors so don’t rule it out until you have all the information for your situation.
Residential
As far as residential mortgages go, in November, the average price for a home reached a 13 month peak, exceeding the £300,000 mark (£304,514), an annual increase of 5.6%.
The government have already highlighted the property market as an area of concern and their decisions around buy-to-let are clearly to help bring the “property power” back into the hands of the homeowner, not the investor.
Tightening lending across the board though could be taking place in 2016, to tackle rising house prices, that could escalate out of control if measures are not taken.
Fixed rate mortgage rates are on the rise already, though not as expected, due to a rise in the Bank of England base rate, as this remains at the low 0.5%. Fear amongst lenders of a potential tighter lending schedule appears to be causing them to reassess their lending rates in advance, so to keep compliant and lend at sensible volumes.
Read more – What if the base rate doesn’t rise until 2017
Mortgage calculators
To calculate your potential mortgage borrowing or your monthly mortgage payments why not try one of our online mortgage calculators?
- Mortgage Affordability Calculator
- Mortgage Cost Calculator
- Mortgage Loan Calculator
- Mortgage Calculator
Read more of Chris’s monthly mortgage updates: