Mortgage Update

Mortgage rates in the UK are expected to continue a gradual decrease in July, influenced by The Bank of England’s potential further cuts to the base rate, which is currently at 4.25%.

Earlier in the year we saw cuts to the base rate, reducing it from 5.25% earlier in the year. There are two further cuts expected to occur in 2025, with analysts reporting an almost 90% chance of an interest rate cut going ahead in August. The Bank of England’s decisions are heavily influenced by inflation however, and while it has been trending downwards, it remains above the 2% target. This means that the Bank will be cautious about further cuts if inflation proves stubborn.

Despite the limited reduction in interest rates we have seen so far, mortgage rates have started to ease with some lenders now offering deals below 4%. This reduction followed a short period of increases however so it’s important to lock in a mortgage deal as soon as you can, rather than waiting for rates to drop. The issue with waiting is there are some pretty significant global challenges at the moment, and mortgage pricing remains reliant on inflation, meaning that further reductions cannot be guaranteed.

What does this all mean for you as a buyer?

The message across the mortgage market, from experts and brokers alike, is to stay attuned to the market and to plan ahead for moving, ensuring everything is in order so that you are ready to act if the right opportunity for you arises.

We always recommend using an independent mortgage advisor who has access to a wide selection of mortgage products. The best deal is not necessarily with your current bank, or the one recommended to you by that agent with an ‘in-house’ mortgage service. Instead, shop around, and an independent mortgage advisor is the best person to go to to help you with that. We’ve dealt with a fair few in our 100 years of collective experience, and we’d happily recommend you to some of the best in the area.