Welcome to February’s Market Update of 2025 – it’s been a really busy start which is a postive sign for the industry.
This month we investigate the second hand market, and share news from the Bank of England…..and it’s not just the drop in base rate….
If you have any questions, or would like to see anything specific in future editions, please let us know.
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The UK mortgage market has seen several key developments over the past two weeks, impacting buyer affordability, lender policies, and market activity. With shifting interest rates and policy discussions influencing homebuying trends, it’s important for new home developers to stay informed and adapt to these changes.
With many homeowners facing higher mortgage repayments as they exit low fixed-rate deals, buyer affordability remains a significant factor. Rising interest rates continue to shape demand, and as mortgage costs increase, developers may need to consider flexible incentives—such as contribution towards deposits or rate buy-down schemes—to help potential buyers manage affordability.
Recent discussions around relaxing mortgage lending criteria could create opportunities for developers. If implemented, proposed changes could enable an estimated 76,000 additional first-time buyers to access mortgage finance, increasing demand for new homes. However, financial regulators are cautious about the potential risks, so developers should keep a close eye on policy changes that could influence buyer accessibility in the coming months.
The impending April 2025 Stamp Duty changes have triggered an uptick in property transactions, particularly from buyers looking to secure purchases before tax increases take effect. This trend presents an opportunity for developers to accelerate sales pipelines and market urgency, particularly for first-time buyers and those purchasing homes over £300,000.
Some lenders have tightened lending criteria in response to economic conditions. Nationwide, for example, has raised the minimum income requirement for solo applicants under its Helping Hand mortgage scheme from £35,000 to £40,000. This could impact potential buyers, particularly in certain regions, highlighting the need for strong partnerships between developers and mortgage brokers to ensure buyers can access suitable financing solutions.
As the mortgage landscape continues to evolve, new home developers have a key role to play in helping buyers navigate affordability challenges. With the right incentives, strategic partnerships with lenders, and a clear understanding of policy changes, developers can position new build homes as an attractive option for buyers looking to secure long-term financial stability.
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% |
|---|---|---|---|
|
5.14% - Scottish BS
5.19% - Furness BS
5.34% - Scottish BS
5.38% - Leek BS
5.39% - Leeds BS
|
4.94% - Virgin
4.99% - Coventry BS
4.99% - HSBC
5.03% - Co-Operative Bank
5.03% - Furness BS
|
4.59% - HSBC
4.62% - Bank of Ireland
4.64% - Bank of Ireland
4.67% - Co-Operative Bank
4.69% - TSB
|
4.53% - Bank of Ireland
4.58% - Furness BS
4.59% - HSBC
4.59% - Bank of Ireland
4.60% - Melton BS
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.39% - HSBC
4.42% - Coventry BS
4.44% - HSBC
4.49% - Barclays
4.49% - TSB
|
4.39% - HSBC
4.42% - Coventry BS
4.44% - HSBC
4.47% - MPowered
4.49% - Barclays
|
4.33% - Coventry BS
4.39% - HSBC
4.44% - MPowered
4.44% - HSBC
4.49% - Barclays
|
4.27% - HSBC
4.28% - Santander
4.30% - HSBC
4.33% - Natwest
4.33% - Coventry BS
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.89% - Scottish BS
5.08% - Leek BS
5.09% - Scottish BS
5.14% - Bath BS
5.20% - Monomouthside BS
|
4.59% - HSBC
4.69% - HSBC
4.69% - Virgin
4.69% - Co-Operative Bank
4.73% - Co-Operative Bank
|
4.43% - HSBC
4.49% - Principality BS
4.53% - HSBC
4.53% - Co-Operative Bank
4.54% - Natwest
|
4.42% - Principality BS
4.43% - HSBC
4.44% - Virgin
4.44% - Scottish BS
4.45% - Melton BS
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.26% - Barclays
4.26% - HSBC
4.28% - Virgin
4.31% - HSBC
4.32% - Coventry BS
|
4.26% - Barclays
4.26% - HSBC
4.31% - Virgin
4.31% - HSBC
4.32% - Coventry BS
|
4.23% - Coventry BS
4.26% - Barclays
4.26% - HSBC
4.28% - Virgin
4.31% - HSBC
|
4.13% - Barclays
4.16% - HSBC
4.19% - HSBC
4.20% - Santander
4.20% - Halifax
|
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, provide current rates available via this scheme.
| Darlington | Furness | Kensington | Leek | Perenna | Virgin | ||
|---|---|---|---|---|---|---|---|
|
95% Rate
|
2.89%
(Based on 5% Incentive. 2yr term) |
3.05%
(Based on 5% incentive. 2yr. £250 cashback) |
N/A
|
3.25%
(Based on 5% Incentive. 2yr term) |
N/A
|
N/A
|
|
| Darlington | Furness | Kensington | Leek | Perenna | Virgin | ||
|---|---|---|---|---|---|---|---|
|
90% Rate
|
N/A
|
2.36%
(Based on 5% Incentive. 2y term) |
4.48%
(Based on 5% Incentive. 2y term) |
N/A
|
5.63%
(Based on 5% Incentive. 30yr term. £1999 fee) |
2.46%
(Based on 5% Incentive. 2y term. £995 fee. £250 cashback) |
|
| Darlington | Furness | Kensington | Leek | Perenna | Virgin | ||
|---|---|---|---|---|---|---|---|
|
80% Rate
|
N/A
|
1.54%
(Based on 5% Incentive. 2y term) |
3.5%
(Based on 5% Incentive. 2y term) |
N/A
|
5.28%
(Based on 5% Incentive. 30yr term. £1999 fee) |
1.94%
(Based on 5% Incentive. 2y term. £995 fee. £250 cashback) |
|
| Darlington | Furness | Kensington | Leek | Perenna | Virgin | ||
|---|---|---|---|---|---|---|---|
|
75% Rate
|
N/A
|
N/A
|
3.2%
(Based on 3% Incentive. 2y term) |
N/A
|
5.15%
(Based on 5% Incentive. 30yr term. £1999 product fee) |
1.44%
(Based on 5% Incentive. 2y term. £995 product fee. £250 cashback) |
|
| Darlington | Furness | Kensington | Leek | Perenna | Virgin | ||
|---|---|---|---|---|---|---|---|
|
60% Rate
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
0.59%
(Based on 5% Incentive. 2y term. £995 product fee. £250 cashback) |
|
The FCA has outlined its strategy for mortgage intermediaries over the next two years. Quality of advice, high pressure selling, excessive fees and conditional selling are all on the FCA’s radar.
Link opens a third party website
Intermediary confidence in the prospects for the mortgage industry improved in the second and third quarters of 2024, having fallen to the same levels as Q1 following the October Budget.
Link opens a third party website
We’re thrilled to welcome Taryn to MAB! Originally from Bristol, Taryn brings a wealth of experience from his time at The Mortgage Brain, where he specialised in New Build mortgages.
His expertise and passion make him a fantastic addition to our growing team, and we can’t wait to see the impact he’ll have!
Outside of work, Taryn is all about football—whether it’s coaching, playing, or watching—and he’s also a keen gym-goer.
Join us in giving Taryn a warm welcome to the MAB family! 🚀
So impressed with Mortgage Advice Bureau!
Robert Thompson, Josh Blackley and Ben Cargill have been incredible; their communication, support, and advice made our experience of securing our first mortgage a very positive one.
Can’t recommend enough!
– Maisie L
A recent study by Architecture & Design Scotland highlights the benefits and growth opportunities of Town Centre Living, based on interviews with private sector housing developers in 2024.
The findings emphasize the importance of revitalising town centres to create vibrant, sustainable communities. The study also identifies challenges and offers insights into effective private sector engagement strategies.
We’re thrilled to share that we’ve been nominated for another award—this time in MAB’s own awards, the MABs!
This recognition is a testament to our incredible team, whose dedication and expertise ensure our customers receive the best possible service and experience tailored to their needs. We celebrate our staff’s hard work and, most importantly, our customers, who inspire us to go above and beyond every day!
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.
Image courtesy of MindAndI