Welcome to our new look Market Update, a fresh and insightful look into the UK’s mortgage landscape. Our new design has been created to bring you a comprehensive yet concise analysis, covering key trends, rates, and industry movements in a format unlike anything we’ve presented before.
Our aim is to keep you informed and ahead of the curve, so stay tuned each month as we delve into the heart of the UK mortgage market, providing clarity and guidance in an ever-evolving financial world. If there is anything specific you would like to see in these updates, please let us know
Holding the base rate at 5.25%, Governor Bailey noted that inflation has fallen, and costs pressures have eased, but said the central bank needs to be “sure” that it will return to the 2% target sustainably before starting to loosen monetary policy. Markets have a cut to 5% fully priced for August, and ultimately expect Band Rate to settle at around 3.5%
Housing Market
House Prices increased for the fifth month in a row according to the Halifax index. This lifted the YoY growth rate to 1.7% and means that the average price is just £1.8k lower that then June 2022 peak.
The mortgage market is also picking up. For example, approvals for house purchases rose to a 15-month high of 55.2k in Jan 2024.
Economic Activity
There is encouraging signs that the UK will pull out of technical recession in Q1 2024. If that’s correct, it will have been one of the mildest recessions in UK history. GDP grew by 0.2% in January with the ONS saying that there has been strong growth in retail and wholesaling.
The BoE noted that the fiscal measures unveiled in the Spring Budget would boost GDP by around 0.25%.
Prices & Inflation
The BoE expects inflation to fall to the 2% target in Q2 2024, but only “temporarily”, before it increases slightly in the second half of the year. It reiterated that geopolitical factors were an upside risk for 2024-25
This is an economic snapshot. It should not be uses as a substitute for professional advice and is not for forward transmission. Rates mentioned are correct as of 21st March 2024.
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% |
|---|---|---|---|
|
5.29% - Scottish Building Society
5.39% - Halifax
5.46% - The Co-Operative Bank
5.50% - Coventry
5.54% - Nationwide
|
5.07% - Cumberland Building Society
5.09% - Coventry
5.14%- Nationwide
5.14% - Virgin
5.16% - Halifax
|
4.89% - Nationwide
4.89% - NatWest
4.92% - HSBC
4.94% - Cumberland Building Society
4.94% - NatWest
|
4..89% - Nationwide
4.89% - NatWest
4.92% - HSBC
4.94% - Cumberland Building Society
4.94% - NatWest
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.59% - Barclays
4.60% - Barclays
4.68% - Barclays
4.72% - Clydesdale
4.73% - HSBC
|
4.59% - Barclays
4.60% - Barclays
4.68% - Barclays
4.73% - HSBC
4.73% - Cumberland Building Society
|
4.59% - Barclays
4.60% - Barclays
4.68% - Barclays
4.73% - HSBC
4.73% - Cumberland Building Society
|
4.53% - Barclays
4.54% - Barclays
4.64% - NatWest
4.68% - Barclays
4.68% - HSBC
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.07% - Leeds
5.09% - Nationwide
5.10% - Cumberland Building Society
5.10% - Halifax
5.13% - The Co- Operative Bank
|
4.64% - Clydesdale
4.67% - Cumberland Building Society
4.67% - Virgin
4.68% - HSBC
4.69% - Halifax
|
4.48% - NatWest
4.51% - HSBC
4.51% - Clydesdale
4.51% - Cumberland Building Society
4.53% - Nationwide
|
4.47% - NatWest
4.48% - NatWest
4.51% - HSBC
4.51% - Clydesdale
4.52% - NatWest
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.36% - HSBC
4.37% - NatWest
4.39% - HSBC
4.40% - Nationwide
4.42% - NatWest
|
4.36% - HSBC
4.37% - NatWest
4.39% - HSBC
4.40% - Nationwide
4.42% - NatWest
|
4.36% - HBSC
4.37% - NatWest
4.39% - HSBC
4.39% - Leeds
4.40% - Nationwide
|
4.16% - NatWest
4.21% - HSBC
4.24% - HSBC
4.24% - Nationwide
4.24% - NatWest
|
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
|
2.65%
|
3.21%
|
3.52%
|
3.62%
|
3.88%
|
|
| 60% | 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|---|
|
RATE
|
2.92%
|
3.47%
|
3.79%
|
3.88%
|
4.14%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
0.99%
|
1.83%
|
2.40%
|
2.76%
|
|
|
5-Year Fixed
|
2.95%
|
3.37%
|
3.62%
|
3.78%
|
|
| Term | 60% | 75% | 85% | 90% | |
|---|---|---|---|---|---|
|
2-Year Fixed
|
2.52%
|
3.09%
|
3.41%
|
3.71%
|
|
|
5-Year Fixed
|
3.54%
|
3.83%
|
4.02%
|
4.16%
|
|
| 80% | 85% | 90% | ||
|---|---|---|---|---|
|
RATE
|
2.11% - £999 Product Fee
|
2.66% - £999 Product Fee
|
3.56% - No Product Fee
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
4.96%
|
5.11%
|
5.15%
|
5.26%
|
|
|
30-35 years
|
5.06%
|
5.21%
|
5.25%
|
5.36%
|
|
|
35-40 years
|
5.12%
|
5.27%
|
5.32%
|
5.43%
|
|
| 75% | 80% | 85% | 90% | ||
|---|---|---|---|---|---|
|
25-30 Years
|
5.09%
|
5.24%
|
5.28%
|
5.39%
|
|
|
30-35 years
|
5.18%
|
5.33%
|
5.38%
|
5.49%
|
|
|
35-40 years
|
5.24%
|
5.40%
|
5.44%
|
5.55%
|
|
Average house prices increased in 69% of areas compared with 2022, while average earnings increased in 88%.
Link opens a third party website
Updated guidance for memes, reels and streams promoting financial services has been published by the FCA.
Link opens a third party website
Furness Building Society have become the latest lender to launch a set of Rates Reducer Products. Available exclusively via intermediaries such as Mortgage Advice Bureau, the new products are available throughout England, Scotland and Wales for purchases of New Build properties from specific developers who are registered with Own New.
Other key points:
There was fantastic news this week as CEO, Dominic Taddei, CFO, Claire Taddei, and our Glasgow-based advisers, Andrew Buchanan and Darren Robinson were announced as finalists in this year’s Scottish Mortgage Awards.
Claire works tirelessly to drive us forward and has been short-listed in the category; ‘Woman of Distinction’. CEO, Dominic, joins her in being nominated for a senior award, and is a finalist in the ‘Business Leader of the Year’ category.
Andy & Darren continue to impress with their customer-driven approach and we are hugely proud of their nomination in the ‘Rising Star of the Year’ category.
Good luck to all four! 🤞
The event returns to Edinburgh on Thursday May 30, at the prestigious Sheraton Grand Hotel.
MAB were a pleasure to deal with throughout the mortgage application process. Jordan and Josh were extremely helpful and made the whole process as straightforward as possible.
– R Youngs
We are delighted to welcome Chloe into our specialist New Build team.
Chloe brings a wealth of experience, having worked with us previously, and more latterly, Countrywide. She is driven towards exceeding her targets and is committed to delivering outstanding customer service to our New Build clients. We wish her all the best.
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