Welcome to our latest market update
This month, we discuss the decision of the Bank of England, and analyse the first rate cuts from lenders since early March…
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With the Bank of England’s decision to hold the base interest-rate, coupled with broad rate cutting from lenders, the UK mortgage market appears to have pivoted from preparation to one of caution.
Ceasefire in the middle-east has brought respite to soaring oil prices, easing fears of worst-case scenario inflation. Despite this, uncertainty remains and the chosen approach reflects a “wait-and-see” attitude rather than one of economic stability.
The Bank of England has kept the base rate at 3.75% following 8-1 vote split on the 30th of April. It is the 3rd successive vote to hold the base-rate since it was announced in December 2025.
In its latest update, the Bank highlighted that conflict in the Middle East has driven up global energy costs, warning that inflation is likely to be higher in the near term as a result. They have stated the future price of energy will likely dictate future interest rate decisions.
For borrowers, the picture is still better than the previous energy crisis from the Ukraine war. Many lenders are pricing 2‑year fixed rates in the mid‑4% range, with 5‑year fixes broadly in the high‑4 to low 5’s depending on your deposit and overall circumstances. We’ve seen some lenders returning previously removed products and cutting the rates they hiked pre-emptively.
The market remains in limbo. The number of houses for sale remains at an 11 year high, which is great for buyers but means more competitive pricing for sellers. Consequentially, house prices rose a modest 0.8% in April, representing a £3,000 increase in monetary value. Industry forecasts suggest modest growth in total mortgage lending this year, with a particular pick‑up expected in remortgaging as more people come to the end of fixed rates and look for a new deal. There is still some pressure on households who fixed at very low rate 5 years ago and are now facing higher payments, which is reflected in a small expected rise in possessions even as arrears are projected to edge down.
The US-Israeli conflict with Iran has been the cause of movements in the mortgage market over the past months. The last few weeks have brought lender cuts and product reintroduction as the conflict de-escalates.
Oil prices have climbed sharply as markets react to the risk of disruption in and around the Strait of Hormuz, and gas prices have also moved higher. Some analysts estimate that a sizeable chunk of the current oil price is now a “risk premium” linked directly to the conflict.
For UK homeowners and buyers, the link is indirect but important. Higher energy and shipping costs tend to push inflation up, which in turn can make the Bank of England more hesitant about cutting interest rates. They also feed through into the government bond and swap markets that lenders use to price fixed‑rate mortgages.
If the conflict is short‑lived and prices settle back, we could see mortgage rates resume a gradual downward trend. If it drags on or escalates, there may be further upward pressure on borrowing costs and a slower recovery in housing market activity.
In this environment, a lot of people are weighing flexibility against certainty. Shorter‑term fixes, such as 2‑year deals, can feel attractive if you believe rates will fall further in the next couple of years. Longer‑term fixes, such as 5‑year products, can offer peace of mind if you’d rather lock in a rate that, while not as low as the ultra‑cheap deals of the past, is still competitive by historical standards.
As a rule of thumb, if you’re most concerned about keeping your monthly payments as predictable as possible, a longer‑term fix may suit you. If you’re comfortable with a bit more uncertainty in exchange for the possibility of benefiting from future rate cuts, a shorter‑term fix could be worth a discussion.
An adviser can help you look at your income, outgoings and future plans to find the balance that feels right for you.
We are here to help – please just let us know if you have any questions!
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% |
|---|---|---|---|
|
5.51% - Santander
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5.23% - HSBC
|
4.95% - HSBC
|
4.93% - Nationwide
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.78% - HSBC
|
4.78% - HSBC
|
4.78% - HSBC
|
4.60% - HSBC
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
5.35% - HSBC
|
4.99% - HSBC
|
4.85% - HSBC
|
4.85% - HSBC
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.76% - HSBC
|
4.76% - HSBC
|
4.76% - HSBC
|
4.71% - HSBC
|
Trading commenced at 8:00 am on Friday under our existing ticker, MAB1.
This transition isn’t just a change of venue, but a strategic move to enhance our corporate profile and pave the way for future FTSE index eligibility.
As CEO Peter Brodnicki noted, our proprietary technology and 25 years of customer data continue to drive our resilience and growth.
“Admission to the Main Market marks an important milestone in MAB’s development, reflecting the scale, quality, and maturity of the business we have built since joining AIM in 2014.
“MAB’s proposition is underpinned by a proprietary technology platform, with AI increasingly acting as a significant enabler, alongside a unique dataset built over 25 years of customer interactions.
“Together, these capabilities support strong and resilient lead flow across economic cycles, and reinforce our position as a leading, tech-enabled intermediary platform.
“We believe admission to the Main Market is a natural progression for a business of our scale and ambition, enhancing our profile, with the aim of meeting the criteria for inclusion in the FTSE 250 over time.”
Barclays and HSBC have joined numerous lenders to cut rates this week. Barclays is lowering prices by up to 19 basis points, launching new products but also increasing rates on some deals by up to 11bps tomorrow. Some of the most notable changes are to residential remortgage-only products.
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Residential property transactions taking place in March were 41% lower in volume than the previous year, when changes to stamp duty thresholds that took effect in April 2025 drove up sales.
Figures from HMRC show that in March, 104,070 transactions took place, which is the highest monthly level of sales seen since March 2025, when 176,190 transactions took place
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Josh helped me with getting my first mortgage, he also supported me with my life insurance.
As a first time buyer, the whole process can be quite daunting, Josh was thorough and very clear and always at the end of the phone if I had any questions, no question too small.
Thank you very much. Me and my children are now very happy and settled in our forever home.
– Chirtsine B
We are delighted to have finalised a £1.4 million deal to acquire HomeOwners Alliance (HOA), a leading UK consumer platform.
Previously owned by its founders and Smoove Limited, HOA attracts millions of annual visitors seeking home-buying guidance.
This strategic move allows MAB to engage with consumers much earlier in their property journey. Beyond providing mortgage advice, MAB aims to integrate HOA with its preferred suppliers to cover the entire home-moving process.
Ben Thompson, MAB’s Director of Home Moving Strategy, noted that the acquisition strengthens the group’s ability to support customers from their very first search.
Collated and developed by Maven
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