Welcome to September’s Market Update, providing an interesting look into the UK’s mortgage landscape.
This month we are thrilled to share details of our new Edinburgh office!
We also welcome a well known face to the MAB team.
If you have any specific questions, please reach out whenever you need.
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By Jack Wilson, Head of New Build
The recent Bank of England decision to lower the base rate from 5.25% to 5% has ushered in a new phase for the UK mortgage market. This marks the first interest rate reduction in over four years, bringing a welcome shift for homeowners, investors, and prospective buyers who have been grappling with elevated mortgage rates.
Following the base rate cut, we’re already seeing positive movements in the mortgage market. Several lenders have responded by slashing their mortgage rates, with some even offering sub-4% five-year fixed deals. This trend is expected to continue, potentially bringing further relief to borrowers.
The mortgage market is becoming increasingly competitive as lenders vie for business. Here’s a snapshot of some recent rates:
It’s important to note that these rates are subject to change and may vary based on individual circumstances and loan-to-value ratios.
While the recent rate cut is encouraging, it’s crucial to maintain a balanced perspective. The days of ultra-low 1% or 2% mortgage rates are unlikely to return in the near future. However, there is cautious optimism in the market. Economists are speculating about the possibility of another rate cut later this year, potentially in November, depending on inflation trends. The Bank of England will be closely monitoring economic indicators to ensure inflation remains under control.
For those looking to secure a mortgage or remortgage, it’s an opportune time to explore options. However, it’s essential to act swiftly as the average shelf life of mortgage products has decreased to just 17 days. When assessing mortgage deals, remember to look beyond the headline rate. Consider factors such as:
While the mortgage market is showing signs of improvement, it’s important to note that we’re still in a period of transition. The Bank of England’s future decisions will largely depend on economic data, particularly inflation figures. The recent slight uptick in inflation to 2.2% serves as a reminder that the economic landscape remains complex. However, with core inflation continuing to fall, there’s reason for cautious optimism about further improvements in the mortgage market.In conclusion, while we’re seeing positive shifts in the UK mortgage market following the base rate cut, it’s crucial for borrowers to stay informed, act promptly when good deals arise, and consider seeking professional advice to navigate this evolving landscape.
Below we have listed the top five rates available across a range of LTVs. Please let us know if you need any additional information.
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.47% - Halifax
5.67% - Halifax
5.73% - Halifax
5.84% - Leeds
5.89% - Furness
|
5.09% - Virgin
5.14% - Virgin
5.17% - Halifax
5.18% - Cumberland
5.19% - Clydesdale
|
4.62% - Halifax
4.69% - Natwest
4.72% - Accord
4.74% - Virgin
4.74% - Natwest
|
4.59% - Clydesdale
4.62% - Halifax
4.63% - Virgin
4.64% - Natwest
4.65% - Leeds
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.35% - Leeds
4.37% - Halifax
4.43% - Virgin
4.44% - Barclays
4.44% - TSB
|
4.35% - Leeds
4.37% - Halifax
4.43% - Virgin
4.44% - Barclays
4.44% - TSB
|
4.28% - Coventry
4.29% - Leeds
4.35% - Leeds
4.37% - Halifax
4.43% - Virgin
|
4.12% - Halifax
4.19% - Barclays
4.24% - HSBC
4.28% - Coventry
4.28% - Cumbernauld
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.14% - Halifax
5.19% - Skipton
5.25% - Halifax
5.29% - Furness
5.29% - Leeds
|
4.54% - Virgin
4.59% - Virgin
4.64% - Nationwide
4.70% - Skipton
4.72% - Virgin
|
4.32% - Clydesdale
4.34% - Halifax
4.34% - Virgin
4.34% - Nationwide
4.36% - Natwest
|
4.22% - Virgin
4.24% - Natwest
4.29% - Natwest
4.29% - Nationwide
4.30% - Leeds
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
3.97% - Halifax
3.99% - Virgin
4.01% - HSBC
4.03% - Barclays
4.04% - HSBC
|
3.97% - Halifax
3.99% - Virgin
4.01% - HSBC
4.03% - Barclays
4.04% - HSBC
|
3.90% - Coventry
3.97% - Halifax
3.99% - Virgin
4.01% - HSBC
4.03% - Barclays
|
3.81% - Halifax
3.81% - HSBC
3.83% - Barclays
3.84% - Barclays
3.84% - HSBC
|
Rate Reducer from Own New is designed to make it more cost effective to buy a new build home by helping homebuyers access mortgage rates that are lower than traditional ones.
This scheme is open to first-time buyers and those planning to move home. The tables below provides current rates available on this scheme.
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
2.10%
|
2.79%
|
3.15%
|
3.25%
|
3.89%
|
|
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
2.36%
|
3.05%
|
3.42%
|
3.51%
|
4.15%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
0.45%
|
1.24%
|
1.93%
|
2.48%
|
|
|
5-Year Fixed
|
2.40%
|
2.72%
|
3.22%
|
3.53%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
2.06%
|
2.53%
|
3.06%
|
3.56%
|
|
|
5-Year Fixed
|
3.04%
|
3.23%
|
3.67%
|
3.96%
|
|
| 80% | 90% | 95% | ||
|---|---|---|---|---|
|
RATE
|
3.09% - £999 Product Fee
|
3.77% - £999 Product Fee
|
4.42% - No Product Fee
|
|
| 80% | 90% | 95% | ||
|---|---|---|---|---|
|
RATE
|
1.84% - £999 Product Fee
|
2.65% - £999 Product Fee
|
3.36% - No Product Fee
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
5.15%
|
5.28%
|
5.30%
|
5.63%
|
|
|
30-40 years
|
5.21%
|
5.34%
|
5.37%
|
5.70%
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
5.28%
|
5.41%
|
5.43%
|
5.76%
|
|
|
30-40 years
|
5.34%
|
5.47%
|
5.50%
|
5.83%
|
|
We are delighted to announce the appointment of Lynn Houston to support and advise our New Build Division.
Lynn joins the team in a part-time capacity, bringing her extensive experience and expertise to enhance the department’s strategic initiatives.
Lynn is a seasoned professional with a wealth of experience in the financial services and real estate sectors. She has served as the Sales Manager at Lovell Partnerships Ltd since May 2023 and was previously the Head of Sales at Springfield Properties for nearly 12 years.
During her tenure at Springfield, she played a pivotal role in driving sales growth and expanding market presence, demonstrating her strong leadership and strategic planning skills.
Her deep understanding of the new build market and her ability to drive growth will be invaluable to Mortgage Advice Bureau as it continues to expand its offerings in this sector.
TSB have recently released their latest Economic Update. Here are the key points:
Expect this to have a positive impact over the coming weeks and months now that school holidays, Euros and the Olympics have all finished.
A fifth (21%) of UK 18-to-34-year-olds and three fifths (59%) of those aged 35 to 54 are unsure if they will ever own a home or are not planning to do so at all. A stark conclusion from new research from YBS.
Link opens a third party website
New house purchase mortgage approvals lifted to their highest level in almost two years, up 2.3% to 62,000 in July from a month ago, data from the Bank of England shows.
Link opens a third party website
We are thrilled to announce that we have relocated our East Coast office from Dundas Street to a state-of-the-art facility in Edinburgh’s West End.
The new office, situated in Orchard Brae House, represents a significant step forward in the company’s commitment to providing an exceptional environment for both staff and clients.
Please feel free to pop by for a cuppa. We move in mid September.
Simply the best in the country.
They’re very active and always carrying you along with the necessary information throughout your application process.
I worked with Josh and Rob during my application and they never ignored even the simplest question. They’re very professional and definitely know their onions when it comes to Mortgage applications
– D Olateju
This weekend, our colleagues (L-R), Claire Taddei, Jaimie Robertson and Amanda Young will race the Great North Run, a challenging yet rewarding journey towards the beautiful coastline of South Shields.
By taking part in this event, they aim to not only raise funds but also spread awareness about the Mortgage Advice Bureau Foundation and its mission.
If you are able, we would really appreciate any donation towards this amazing cause.
Your support will enable the foundation to continue their vital work in improving lives and strengthening communities.
Full info is here: https://hubs.la/Q02N1RcL0
We wish them the best of luck!
The information pertained in here is not intended for public consumption, it has been prepared for the partners and friends of Mortgage Advice Bureau. Please do not share with consumers or buyers. Thank you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
In some instances, there may be a fee for mortgage advice. We will not charge a fee to those purchasing a new build home who contact us via the details provided. Other branches of Mortgage Advice Bureau may charge a fee. The actual amount you pay to them will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Images courtesy of WayHomeStudio