Mortgage Matters: Local Insights for Ruislip & Pinner
Wondering how the latest mortgage trends could affect you and your property? In this month’s Mortgage Minute, we break down the key updates, local insights, and tips to make the most of the current market in Ruislip and Pinner. Whether you're buying, selling, or just curious, it’s a must-read for staying one step ahead!
Hello and welcome to Ryan from RSN Financial's monthly newsletter
As we step into 2025, the UK mortgage market is experiencing notable changes that prospective homebuyers and homeowners should be aware of. Here's a concise overview to keep you informed:
Interest Rates and Economic Outlook
The Bank of England's base rate remains at 4.75% as of January 2025. While some experts anticipate potential rate cuts later this year to stimulate economic growth, current market conditions suggest that significant reductions in mortgage rates may not materialize immediately.
Average Mortgage Rates by Loan-to-Value (LTV)
Your Loan-to-Value ratio—the percentage of the property's value that you're borrowing—significantly influences the interest rate you'll receive. Here are the current average rates based on LTV:
- 95% LTV (5% deposit):
- 2-year fixed: 5.27%
- 5-year fixed: 5.05%
- 90% LTV (10% deposit):
- 2-year fixed: 5.06%
- 5-year fixed: 4.99%
- 85% LTV (15% deposit):
- 2-year fixed: 4.90%
- 5-year fixed: 4.84%
- 75% LTV (25% deposit):
- 2-year fixed: 4.80%
- 5-year fixed: 4.65%
- 60% LTV (40% deposit):
- 2-year fixed: 4.33%
- 5-year fixed: 4.22%
Please note these are averages so please speak with Ryan about a specific case and I can ensure we find the best possible rate to suit your situation
Market Predictions
Analysts forecast a gradual increase in mortgage market activity throughout 2025. The Intermediary Mortgage Lenders Association (IMLA) anticipates a 16% rise in gross mortgage lending, from £237.5 billion in 2024 to £275 billion in 2025, with further growth projected for 2026.
Advice for Borrowers
Given the current landscape:
- For First-Time Buyers: Consider exploring options with lower deposit requirements, such as 95% LTV mortgages to get on the ladder sooner. However, be mindful of the higher interest rates associated with these products.
- For Homeowners with Maturing Fixed Rates: It's advisable to review your remortgaging options early, as rates may remain steady or experience slight fluctuations in the near term.
- For All Borrowers: Maintaining a strong credit profile and seeking advice from a trusted mortgage broker can help you navigate the evolving market and secure the most favourable terms.
Staying informed and proactive is key in this dynamic environment. Regularly consult with your mortgage advisor to ensure your mortgage strategy aligns with the latest market developments.
Below are useful articles to keep you well informed.
If you would like to speak with me on anything property related please do get in touch for some free honest advice:
James Burgess
07513137021
james@avocadopropertyagents.co.uk
