Providing expert mortgage advice for over 28 years.
Providing expert mortgage advice for over 28 years.
Mortgage rates may stabilise or slightly fall in 2025, depending on inflation and global factors. Borrowers should watch for competitive lender deals as conditions shift. Further base rate cuts are expected to make borrowing more affordable, leading to:
Recent months have seen fluctuations in rates, but the end of next year looks promising for borrowers. The current base rate, while still higher than during the global financial crisis, is predicted to fall, offering welcome relief to mortgage customers.
The Monetary Policy Committee has signalled potential rate cuts in the near future. This trend is expected to continue, with further cuts likely in the coming years. The International Monetary Fund predicts that the UK inflation will stabilise potentially boosting economic growth.
The mortgage market is highly unpredictable. While rates are expected to stabilise, economic shifts or inflation surprises could quickly alter these predictions.
As we look towards 2025, the UK mortgage market is set for significant changes. With interest rates expected to fall and government initiatives aimed at boosting the housing sector, potential homebuyers have much to consider. Here’s a comprehensive guide to what you can expect in the coming year and beyond.
Mortgage rates may stabilise or slightly fall in 2025, depending on inflation and global factors. Borrowers should watch for competitive lender deals as conditions shift. Further base rate cuts are expected to make borrowing more affordable, leading to:
Recent months have seen fluctuations in rates, but the end of next year looks promising for borrowers. The current base rate, while still higher than during the global financial crisis, is predicted to fall, offering welcome relief to mortgage customers.
The Monetary Policy Committee has signalled potential rate cuts in the near future. This trend is expected to continue, with further cuts likely in the coming years. The International Monetary Fund predicts that the UK inflation will stabilise potentially boosting economic growth.
The mortgage market is highly unpredictable. While rates are expected to stabilise, economic shifts or inflation surprises could quickly alter these predictions.
As interest rates fall, lenders are likely to offer more competitive deals. This could lead to:
Homeowners with tracker mortgage products or on standard variable rates may see a reduction in their interest payments and overall payments. For those currently on fixed rate term deals, it is worth considering when to switch to take advantage of potentially lower rates.
At Newhomes, we offer a Mortgage Rate Check service, If interest rates drop before your mortgage is finalised, we can help you switch to a lower rate, if available, potentially saving you money. This service will be particularly valuable to customers in 2025 as the market shifts.
Switching to a different lender may incur additional costs/charges
The latest budget announcement revealed plans to build 1.5 million new homes over five years, focusing on affordability and utilising brownfield sites. Key initiatives include:
These initiatives aim to address ongoing challenges in the housing market, potentially easing pressure on house prices and improving accessibility for first-time buyers.
From 1st April 2025, stamp duty changes to the threshold will be:
For first-time buyers:
These stamp duty changes could increase upfront costs for some buyers but are designed to stimulate the market by encouraging home purchases to complete before the new rates take effect.
First-time buyers face additional challenges in 2025 with higher Stamp Duty thresholds and mortgage rates. Early preparation and exploring government schemes can help.
Several schemes are available to assist homebuyers:
As rates stabilise, 2025 could be a great time to remortgage for better terms. Consider locking in competitive deals while they’re available.
For those with existing Help to Buy loans, 2025 could be the ideal time to consider remortgaging. Our Remortgage team specialises in guiding clients through the remortgaging process, including Help to Buy remortgages. We can help you potentially secure better terms and interest payments.
With mortgage lending expected to grow by over 3% in 2025 due to falling interest rates and improved economic conditions:
House price growth will vary by region, with Northern England and Scotland likely to outperform the national average, while London may see slower growth.
UK interest rates are influenced by global economic factors:
Recent weeks have seen global factors like US interest rates and European monetary policy may influence UK mortgage rates and housing market conditions.
The Financial Conduct Authority continues to play a crucial role in protecting mortgage customers:
