Welcome to the first Market Update of 2025 – we wish you a Happy New Year and we hope it’s one that brings everything you dream of
This month we look at how 2024 ended and what the new year may have in store.
If you have any specific questions, please reach out whenever you need.
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The UK mortgage market experienced a surprisingly active period over the recent Christmas and New Year break, defying the typical seasonal lull. As we enter 2025, the market shows signs of continued growth and increased activity.
End of 2024 Performance
The mortgage market ended 2024 on a positive note:
As we enter 2025, the UK mortgage market is showing strong signs of recovery and growth following a challenging period. Here’s a comprehensive overview of the current landscape and what we can expect in the coming year:
Market Performance
The mortgage market has demonstrated remarkable resilience, with gross mortgage lending projected to rise by 11% to £260 billion in 2025
This growth is underpinned by improving affordability conditions and increasing consumer confidence.
Key Indicators:
Affordability and Interest Rates
The Bank of England’s gradual reduction of interest rates is expected to continue, leading to more attractive mortgage rates. This, combined with rising real wages, is set to ease affordability pressures for homebuyers and remortgagers alike
Market Dynamics
Pent-up Demand
We anticipate a significant release of pent-up demand in 2025, potentially leading to a “catch-up year” in the housing market. This surge is expected to be driven by buyers who have been waiting for more favourable conditions.
Remortgaging Boom
With a record number of fixed-rate deals coming to an end, we expect to see unprecedented levels of remortgaging activity in 2025 and 2026.
First-Time Buyers
The market is becoming increasingly accessible for first-time buyers, with around 150,000 expected to get on the property ladder in 2025.
Technology and Innovation
At Mortgage Advice Bureau, we continue to invest heavily in technology and artificial intelligence to enhance lead generation, improve adviser productivity, and provide scalable growth opportunities.
Outlook
While challenges remain, particularly in the buy-to-let sector, the overall outlook for the UK mortgage market in 2025 is positive. We expect to see:
As the UK’s leading mortgage intermediary, Mortgage Advice Bureau is well-positioned to capitalise on these market trends and continue our track record of outperformance and market share growth.
For personalised advice on navigating the evolving mortgage landscape, don’t hesitate to reach out to one of our expert advisers.
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
5.49% - Newcastle for Intermediaries
|
4.94% - Virgin
4.99% - Coventry BS
5.03% - Furness BS
5.04% - HSBC
5.04% - Nationwide
|
4.61% - Halifax
4.64% - Santanderx
4.64% - HSBC
4.68% - Cumberland BS
4.69% - TSB
|
4.52% - Leeds BS
4.58% - Furness BS
4.59% - Virgin
4.61% - Halifax
4.64% - Santander
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.29% - Santander
4.34% - HSBC
4.34% - Santander
4.35% - Barclays
4.36% - Barclays
|
4.29% - Satander
4.34% - HSBC
4.34% - Santander
4.35% - Barclays
4.36% - Barclays
|
4.16% - Leed BS
4.28% - Coventry BS
4.29% - Santander
4.29% - Leeds BS
4.34% - HSBC
|
4.16% - Leeds BS
4.20% - HSBC
4.21% - Santander
4.22% - Barclays
4.23% - Barclays
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.89% - Scottish BS
5.08% - Leek BS
5.09% - Scottish BS
5.14% - Bath BS
5.14% - Halifax
|
4.64% - Virgin
4.66% - HSBC
4.69% - HSBC
4.69% - Furness BS
4.71% - Barclays
|
4.38% - HSBC
4.41% - HSBC
4.43% - Halifax
4.44% - Leeds BS
4.46% - Virgin
|
4.34% - Virgin
4.34% - Leeds BS
4.35% - Nationwide BS
4.38% - HSBC
4.39% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.18% - Natwest
4.18% - HSBC
4.20% - Leeds BS
4.20% - Virgin
4.21% - HSBC
|
4.18% - Natwest
4.18% - HSBC
4.20% - Leeds BS
4.20% - Virgin
4.21% - HSBC
|
4.21% - Virgin
4.22% - HSBC
4.25% - HSBC
4.27% - Barclays
4.29% - Coventry
|
4.06% - HSBC
4.07% - Natwest
4.09% - HSBC
4.11% - Barclays
4.12% - Halifax
|
Having recently partners with Own New, we have added Kensington’s rates to the table below
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) |
2.95%
(Based on 5% incentive. 2yr. £250 cashback) |
N/A
|
3.34%
(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) |
2.42%
(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) |
1.24%
(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
|
0.5%
(Based on 5% Incentive. 2y term. £995 product fee. £250 cashback) |
|
In a significant development in the UK financial sector, Coventry Building Society has successfully completed its acquisition of The Co-operative Bank. This strategic move has created a formidable financial institution with combined assets of approximately £89 billion and a customer base of around four and a half million members across the country.
Points of the Acquisition
Return to Mutual Ownership: The 152-year-old Co-operative Bank has now become a subsidiary of Coventry Building Society, marking its return to mutual ownership
Leadership Changes: David Thorburn will lead the combined group as chairman. Steve Hughes takes on the role of CEO
Impact on Customers
Steve Hughes, the Group CEO, reassured customers that there would be no immediate changes to their services. Both Coventry Building Society and The Co-operative Bank will continue to operate under their respective brands for the time being
Customers with accounts at both institutions will continue to benefit from the maximum protection offered by the Financial Services Compensation Scheme through each organisation
Future Outlook
The merger of these two values-driven organisations aims to create a mutually owned business focused on member, customer, and community needs. With a combined experience of almost 300 years, the new entity is poised to enhance its services and offerings to better serve its expanded customer base
This acquisition represents a significant shift in the UK’s financial landscape, potentially offering customers a stronger, more diversified financial services provider with a continued focus on mutual values and community engagement.
Consumer lending grew at the weakest pace since mid-2022 in November and lenders approved fewer mortgages than expected, according to Bank of England data.
Link opens a third party website
Cash buyers are securing average discounts of over 13% compared to the prices paid by buyers needing a mortgage, new analysis by MPowered Mortgages reveals.
Link opens a third party website
UK house prices ended 2024 on a strong footing, up 4.7% compared with December 2023, though prices were still just below the all-time high recorded in summer 2022, according to the December house price index from Nationwide.
Jordan Moffat has been super throughout the whole process.
He has been very helpful in helping us secure our Mortgage offer as we discussed different options with him. We would highly recommend!
Thank you for all your help Jordan!
– Amy E
Last month’s Employee of the Month is Jessica Hill, for her exceptional efforts in planning and organising our End of Year Conference.
Jess put her extensive skillset to use to ensure the smooth operations of the day, and that any foreseeable challenges were addressed and resolved before they had a chance to arise.
Jess works exceptionally hard behind the scenes to create an enjoyable, informative and seamless experience for all who attend our Annual Conference, and we have every confidence that this event will go from strength to strength, thanks to Jess.
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.
Images courtesy of WayHomeStudio