Welcome to May’s Market Update…..
This month we’re expanding the team and celebrating a nomination for a UK mortgage award.
If you have any questions, or would like to see anything specific in future editions of these updates, please don’t hesitate to get in touch.
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Here’s our latest update on the UK mortgage market, and what it means for you.
A Changing Market
Recent figures from the Bank of England show that mortgage approvals have fallen for the third month in a row, with 64,300 approvals in March.
This signals a more cautious approach from both lenders and buyers, reflecting current economic conditions and the end of the recent stamp duty holiday.
However, despite fewer approvals, net mortgage borrowing has increased as many buyers completed purchases ahead of the stamp duty deadline.
Interest Rates and Affordability
The effective interest rate on new mortgages has eased, providing some relief for those looking to buy or remortgage.
Average rates are now consistently under the 5% mark, even at higher LTVs, and there’s some real positive steps in the market to keep products competitive. Cashback is also being offered, especially for First Time Buyers, as lenders look to broaden their client base.
With the Bank of England’s base rate at 4.50%, further rate cuts are anticipated later this year, which could help improve affordability for many borrowers.
First-Time Buyers and Remortgaging
First-time buyers remain active, now representing nearly 30% of all new mortgages for owner-occupiers. If new buyers looking to get onto the property ladder, this could be a good time to explore the options, especially as lenders continue to offer a range of products tailored to different needs.
Remortgaging activity is also on the rise, with more homeowners seeking to secure better rates or release equity.
Looking Ahead
The outlook for the remainder of 2025 is cautiously optimistic.
Mortgage lending growth is expected to pick up, and house prices are showing modest increases.
With potential interest rate reductions on the horizon, there could be more opportunities for buyers and those looking to remortgage.
How We Can Help
At Mortgage Advice Bureau, we’re here to support your buyers every step of the way. Our advisers take the time to understand individual circumstances and search thousands of products to find the right mortgage.
Below we have listed the lowest rates available across a range of LTVs.
Please note these are for illustration purposes only – not all clients may qualify for these. If you need any additional detail, please let us know,
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.05% - Bank of Ireland
|
4.72% - Bank of Ireland
|
4.45% - Barclays
|
4.44% - Virgin
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.17% - Barclays
|
4.17% - Barclays
|
4.27% - Barclays
|
4.16% - Halifax
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.94% - HSBC
|
4.54% - Virgin
|
4.20% - HSBC
|
4.36% - Virgin
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.22% - Virgin
|
4.23% - Halifax
|
4.23% - Halifax
|
4.14% - Halifax
|
It’s official – we’ve been shortlisted in the Mortgage Broker of the Year (50+ Employees) category at the 2025 Financial Reporter Awards! 🏆
The next stage of the process involves a broker vote, where you get to decide which finalists are worthy winners, and we’d really appreciate your support to help MAB take home the trophy.
Voting is quick and easy – simply head to this link, where you’ll be directed to our finalist category:
International buyers and tenants are turning to the UK property market as a “safe haven” following the chaos caused by Trump tariffs, says Knight Frank.
Link opens a third party website
Zoopla: House prices rose by 1.6% in the year to March 2025, compared to 0.2% a year earlier, but were down from 1.9% in December 2024, research revealed.
Link opens a third party website
Exciting times in our Edinburgh Head Office….we’re on the hunt for three new colleagues!
I had a fantastic experience working with Amanda Young as my mortgage advisor.
From start to finish, she guided me through every step of the process with clarity and professionalism. She understood my needs and helped me select the most suitable mortgage and insurance policies tailored to my situation.
Her advice was always clear, honest, and incredibly helpful. I truly felt supported throughout.
– Barkha A
After a record-breaking month, we’re delighted to announce Rob Thomson as our Employee of the Month.
Rob’s unwavering commitment to providing the very best level of care and support is there for all to see.
He consistently goes above and beyond to ensure that every individual receives the attention and assistance they need, embodying our core values of compassion, excellence, and teamwork.
Rob’s positive attitude, reliability, and dedication have had a remarkable impact on both his colleagues and those he supports, inspiring everyone around him to strive for the highest standards.
A massive well done to Rob-your hard work and passion have not gone unnoticed, and we are grateful for the difference you make every day. Great work.
Collated and developed by Maven
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.
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