Niche Advice Rate Tracker Index (NARTI)
Rather than provide rafts of meaningless information NARTI focuses in on the key areas of:
- First time buyer 5 year fix with 15% deposit
- First time buyer 5 year fix with 10% deposit
- Buy-to-let 5 year fix with 25% deposit
- Buy-to-let 5 year fix with 20% deposit
Director and Advisor of Niche Advice Mr Payam Azadi comments on the latest data:
“In December 2021 the Bank of England Base Rate sat at 0.1% fast forward to June 2022 and it has jumped to 1.25%. The Cost of Living rises and global energy increases have contributed to inflation running just over 9% and muted it could get to 11% before the end of the year – well over the Monetary Policy Committee’s brief to aim for 2%.
So how’s this impacting new mortgage rates? Well it would be patronising to say both the initial and reversionary rates have also climbed so I’ll point to estimated “Total Amount payable” over the life of the mortgage in the NARTI tables which really brings this home.
Azadi goes on to say “I have been generally been recommending 5 year fix rates to all my clients for months now unless they have a really good reason not to lock-in such as a potential move during the period. What really hurts is the “pace” of change. We’ve had incidents recently where normally reliable industry mortgage search engines have been behind the on the products they are displaying. Lenders changing without notice within days of their last move. Major high street Lenders changing by as much as 0.46% in a single hit, which is an extra 2.30% over the course of a 5 year fix. To put this into context the rate went from 2.99% to 3.45% which on a £250,000 repayment mortgage over 25 years this adds around £67 a month or over £804 a year mortgage payments”.
| First time buyer 5 year fix with 15% deposit | ||
| Date analysed | 13/10/21 | 25/06/22 |
| Initial rate | 2.01% | 2.79% |
| Subsequent reversionary rate | 3.59% | 4.50% |
| The total amount you must pay back, including the amount borrowed is | £365,292.66 | £401,800.35 |
| Overall cost of comparison APRC | 3.0% | 3.9% |
| Type and initial benefit period | Fixed rate until 28/02/2027 | Fixed rate until 02/10/2027 |
| Minimum percentage | 15% | 15% |
| Valuation fee | Free | Free |
| Booking fee | £Nil | £Nil |
| Lender product fee | £995 | £999 |
| Cashback | £350 | £500 |
| Lender name | NatWest | Santander |
| First time buyer 5 year fix with 10% deposit | ||
| Date analysed | 13/10/21 | 25/06/22 |
| Initial rate | 2.59% | 2.84% |
| Subsequent reversionary rate | 4.49% | 4.50% |
| The total amount you must pay back, including the amount borrowed is | £421,188.74 | £426,103.23 |
| Overall cost of comparison APRC | 3.8% | 3.9% |
| Type and initial benefit period | Fixed rate until 31/01/2027 | Fixed rate until 02/10/2027 |
| Minimum percentage | 10% | 10% |
| Valuation fee | Free | Free |
| Booking fee | £Nil | £Nil |
| Lender product fee | £495 | £999 |
| Cashback | £500 | £500 |
| Lender name | Accord | Santander |
| Buy-to-let 5 year fix with 25% deposit | ||
| Date analysed | 13/10/21 | 25/06/22 |
| Initial rate | 1.69% | 2.79% |
| Subsequent reversionary rate | 3.5% | 4.1% |
| The total amount you must pay back, including the amount borrowed is | £428,735.00 | £460,653.69 |
| Overall cost of comparison APRC | 3.5% | 4.1% |
| Type and initial benefit period | Fixed rate until 28/02/2027 | Fixed rate until 02/10/2027 |
| Minimum percentage | 25% | 25% |
| Valuation fee | Free | Free |
| Booking fee | £Nil | £Nil |
| Lender product fee | £1,495 | £1,499 |
| Cashback | £Nil | £250 |
| Lender name | NatWest | Santander |
| Buy-to-let 5 year fix with 20% deposit | ||
| Date analysed | 13/10/21 | 25/06/22 |
| Initial rate | 3.18% | 3.05% |
| Subsequent reversionary rate | 4.54% | 5.00% |
| The total amount you must pay back, including the amount borrowed is | £497,335.00 | £519,557.75 |
| Overall cost of comparison APRC | 4.3% | 4.6% |
| Type and initial benefit period | Fixed rate until 01/02/2027 | Fixed for 5 years |
| Minimum percentage | 20% | 20% |
| Valuation fee | £275 | £200 |
| Booking fee | £Nil | £Nil |
| Lender product fee | £995 | £1,999 |
| Cashback | £500 | £Nil |
| Lender name | Virgin | Metro |
NOTES
* True Cost factors in the interest rate, mortgage set-up costs and any cashback rebates. It assumes the product fee is paid.
* The comparison is based on an assumed purchase price of £300,000 over a 25 year mortgage term.
* It looks at repayment method of “Capital and Interest” for Residential and “Interest only” for Buy-to-let.
* Eligibility will depend on your own personal circumstances.
Health Warning
Your Property is at Risk if you do not keep up with your mortgage repayments.
Niche Advice arranges mortgages and is not a Lender.
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