Welcome to September’s Market Update…..
This month we reflect on a recent base rate cut and some stability in the market….
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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The UK mortgage market has entered Autumn with cautious optimism as recent months saw significant changes in interest rates, product availability, and regulatory attention.
The Bank of England base rate was cut to 4% in August 2025, following a series of reductions from a peak of 5.25% in mid-2024.
These reductions have led to material changes in mortgage pricing, with fixed rates gradually falling: 2-year fixed deals can now be found from as low as 3.75% (Barclays, 60% LTV) for purchases, and 3.80% for remortgages (HSBC).
Standard variable rates (SVR) remain elevated, averaging 7.42%, but vary significantly by lender, so it’s vital to compare options carefully.
The downward rate trend is expected to continue, with forecasts suggesting the base rate could dip to 3.5% by year-end barring major economic shocks.
Although inflation has eased considerably from its 2022 peak, it remains niggling—CPI edged up to 3.6% in July and is forecast to hit 4% in September, ahead of a hoped-for decline.
The Bank’s cautious stance on further rate cuts reflects lingering concerns over wage growth and the impact of international events, such as increased US tariffs, which could pressure both inflation and global financial conditions.
As a result, there may be distinct periods where rate decreases slow or reverse if inflation remains persistent.
Lower interest rates have spurred renewed confidence among borrowers and lenders. UK mortgage lending growth is forecast to more than double this year to 3.1% (net), up from 1.5% in 2024—a sign of increased buyer activity and more competitive mortgage offerings.
Lenders are sharpening their affordability assessments, with regulatory oversight from the Financial Conduct Authority (FCA) focusing on sustainable home ownership, innovation, and transparency in disclosures, ensuring both introducers and buyers benefit from clear, robust advice.
Those assisting new build developers and estate agents should note several key implications:
Fixed rates are competitive for low LTV borrowers, but fees and criteria can vary, so exploring a wide panel of lenders remains important.
Remortgaging is generally favourable in 2025, especially for borrowers coming off higher fixed rates—timing is crucial as rates could fluctuate with future Bank of England decisions.
Affordability checks and responsible lending standards mean some prospective buyers may find their options restricted; introducers should help clients prepare robust documentation and credit profiles for applications.
Economic factors (slow growth, wage pressures, international dynamics) should inform market outlooks and client expectations for rate movements and affordability.
Ongoing reforms and FCA engagement suggest further innovations in mortgage products will emerge, including tools for flexible underwriting and enhanced borrower support.
Introducers are advised to keep abreast of rate changes, consult wide-ranging product panels, and prepare buyers for evolving affordability criteria – ensuring clients are well placed to navigate 2025’s dynamic, but opportunity-filled, mortgage landscape.
We are, of course, 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% |
|---|---|---|---|
|
4.75% - Danske
|
4.46% - Halifax
|
4.27% - Halifax
|
4.15% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.09% - Barclays
|
4.09% - Barclays
|
4.05% - Leeds BS
|
4.01% - HSBC
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.60% - Monmouthshire BS
|
4.38% - Virgin
|
4.22% - Halifax
|
4.19% - Halifax
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.12% - HSBC
|
4.12% - HSBC
|
4.12% - HSBC
|
4.02% - HSBC
|
People with car finance deals are now eligible to borrow more on their home loans than they could six months ago.
Link opens a third party website
Link opens a third party website
The Diversity and Inclusivity Finance Forum (DIFF) has launched its School Leavers Initiative, championing social mobility and opening doors to the mortgage industry for young people.
Now in its second year, the initiative showcases the journeys of senior industry leaders, including MAB CEO Peter Brodnicki, who built successful careers without going to university.
By sharing their stories, DIFF aims to inspire school leavers to explore the exciting opportunities available in financial services.
Read more here: 🔗 https://lnkd.in/e76FTEF7
Brilliant service from Mortgage Advice Bureau.
The team were super helpful, explained everything in plain English, and made the whole process really easy. Felt well looked after from start to finish.
Would definitely recommend!
– A Ashour
We’re excited to introduce the newest (and possibly cutest!) member of the MAB family, Rolo.
At just ten weeks old, he’s already stolen our hearts. We’re sure you’ll agree he’s absolutely adorable!
Collated and developed by Maven
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