Welcome to November’s Market Update…..
This month, our friends at The Mortgage Lender provide a market overview and we learn about a new product from nationwide that will support first time buyers….
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.
Scroll on…..
The UK mortgage market continues to show resilience, with major lenders holding rates steady and slight improvements in affordability supporting both buyers and sellers.
The Bank of England maintained its base rate at 4% this autumn, creating a stable environment for borrowers and mortgage providers alike. Although headline inflation remains above target at 3.8%, there are signs of gradual improvement, and the likelihood of further rate cuts before year-end appears low.
Mortgage rates have drifted down compared to previous months, with average five-year fixed rates dropping below 5% for the first time since early 2023. Lenders are actively repricing their products to control business volumes, resulting in a mixture of slight upward and downward adjustments on fixed-rate deals. This ongoing recalibration has given borrowers some relief on monthly payments, though changes remain modest overall.
The market has seen a continued increase in the value of gross mortgage advances -up 12.8% from the previous quarter and more than 50% higher than a year ago, reaching £77.6 billion. The number of new mortgage commitments remains robust, supporting healthy activity through autumn. Buyer behaviour continues to adjust in response to broader choice and improving mortgage affordability, with first-time buyers and home movers both taking advantage of competitive pricing strategies and incentives. Buyer enquiries and agreed sales have both risen, with buyers gaining more negotiating power as the range of available homes reaches a decade high.
House prices remain relatively stable, with only marginal fluctuations reported. Nationwide data cited a 0.1% fall in August and annual growth down to 2.3%, suggesting the market has cooled but is not experiencing a sharp correction. Regional differences persist, with stronger growth in northern areas and Scotland compared to London and the South East. Leading analysts expect modest national price growth of about 1% for 2025, down from earlier forecasts, reflecting increased competition and cautious sentiment.
Remortgaging levels have simmered but show signs of sustained interest, especially as fixed-rate deals become more attractive. Specialist lenders – such as those in the buy-to-let sector – are streamlining product offerings and innovating through technology and sustainability-driven products, including green mortgages. Buy-to-let market activity has slowed as small landlords reassess portfolios, yet regulatory changes, product innovation, and wider adoption of digital origination tools are further supporting market stability.
Looking ahead, the consensus is for steady activity to continue as the market adjusts to modest price growth, a broad selection of homes, and competitive mortgage deals. Sellers are advised to remain flexible on pricing, as buyer sensitivity to value is high. While the climate is increasingly buyer-friendly, sustainability standards and green finance are rising priorities for lenders and investors alike.
Base rate remains steady at 4%.
Mortgage rates have slowly edged down, improving affordability.
House prices are largely flat, with modest growth expected for 2025.
Gross mortgage advances are up, driven by robust first-time buyer and home-mover activity.
Remortgaging and specialist lending (green mortgages, tech-driven offerings) remain dynamic.
Sellers should price competitively; buyers have more choice and negotiating power.
Sustainability initiatives and regulatory changes are shaping future products.
These trends indicate a balanced, buyer-friendly, and resilient market as we approach winter, with out support you are well-placed to guide clients through continued change in the mortgage and housing landscape
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% |
|---|---|---|---|
|
4.81% - Bank of Ireland
|
4.03% - Danske
|
4.22% - Halifax
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4.18% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.08% - Barclays
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4.08% - Barclays
|
4.08% - Barclays
|
3.93% - Santander
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.78% - Clydesdale Bank
|
4.44% - Danske
|
4.22% - Halifax
|
4.22% - Halifax
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.14% - Natwest
|
4.14% - Natwest
|
4.14% - Natwest
|
4.04% - Natwest
|
This month’s economic update comes from our friends at The Mortgage Lender…..
Inflation stuck at 3.8% in August, with services inflation at 4.7%, still above comfort levels. Food price inflation continues, and headline inflation is expected to end the year at 3.5%, reaching the 2% target by late 2026. Real interest rates are close to zero, and financial markets are not fully pricing in a Bank Rate cut before March 2026. The Bank of England’s Monetary Policy Committee faces complex decisions balancing business costs, wage pressures, and fiscal policy’s impact on demand.
Vacancies have slumped, signalling a cooling jobs market, but unemployment deterioration is slowing, currently at 4.6–4.9%. Job growth is tepid, with firms delaying hiring until after the Budget. Further business-unfriendly measures could exacerbate lay-offs in 2026, increasing risks in the job market.
House prices are flat year-on-year, with softness especially in southern regions where supply exceeds demand. Most forecasters anticipate only modest growth, with the consensus closer to 0.7–3.4% annual rise depending on the budget’s impact on demand. Highest price growth is seen in northern regions and Scotland, while London and South West lag. In the rental market, London rents have spiked over the last two months, diverging from broader trends where demand has softened and supply increased, likely due to lower net migration. Nationally, rental income stability contrasts with growing yields outside southern regions, while regulatory policy changes, such as bringing rental income into National Insurance, could challenge buy-to-let economics.
Mortgage approvals remain steady, but demand for higher-value properties has softened in anticipation of the Budget. First-time buyer affordability has improved but remains above long-term averages everywhere except the North East and North West. Overall borrowing rose in August, and while mortgage market activity is softer, it is not contracting sharply. Credit conditions have eased, but buyers remain cautious and sensitive to affordability constraints.
Moneyfacts: It has been over a month since the rate last fell below 5%. Before then, the rate had not dipped below 5% since September 2022.
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We’re in the running for the Best Mortgage Broker (40 advisers and over) category at this year’s Personal Finance Awards.
As the benchmark for excellence in the UK consumer finance industry, we’re delighted to have been shortlisted by the public for this prestigious award. 👏
A huge than you to everyone that voted for us. Fingers crossed for the awards ceremony!
Excellent, warm & professional service from James.
Couldn’t have asked for better support throughout this significant time.
Would recommend MAB to anyone.
– M Cameron
MAB is proud to support the ‘Homes Build Futures’ campaign – an inspiring initiative highlighting why building more homes across Scotland is vital for families and communities.
Did you know that more than one in four Scottish households are currently in housing need, and over 10,000 children are living in temporary accommodation?
Behind those numbers are real stories of families waiting for the stability, safety and sense of belonging that a home provides.
This campaign, supported by housing partners across Scotland, calls for new homes to be made a top priority ahead of next year’s Scottish Parliament election.
View their campaign website and watch children describe their dream homes and hear George Clarke explain why a home is so much more than bricks and mortar – it’s where futures begin.
Join us in backing the campaign and sharing your voice…..
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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