Although a cut may have been the preferable decision, today’s choice to hold the base rate at 4.25% will still be welcomed by homebuyers and remortgagers alike, as it reinforces the growing sense of consistency and strength in the mortgage market.
We’ve continued to see growing borrower engagement in recent months, driven by greater pricing stability and increased lender confidence. Even without a rate cut, we have seen product choice across all segments of the market remain healthy and the number of products available for low-deposit mortgages has improved substantially since the start of the year.
With this stable rate environment and improving affordability, we expect momentum to build further as we move into the second half of the year.
How do interest rates look?
We’ve seen rate reductions across all mortgage products over this year. Fixed rates below 4% are available again and we are now seeing 2 year prices slightly below 5 year products, for the first time since August 2022. This might mean you’re now actively planning to move, or,
if you’re on a standard variable rate, looking to renegotiate onto a new
fixed-term mortgage product (a potential saving of £16,965.36*).
How will today's announcement affect your current mortgage?
• If you’re on a fixed-rate mortgage, there's no change, but if you’re within the last few months of that deal, it’s worth looking at your options for remortgaging now. You can lock in a new rate in advance which will prevent you from reverting to your lender’s standard variable rate. Talk to us about your options.
• If you're on a tracker mortgage which effectively 'tracks' the base rate, and your lender hasn't reduced their base rate, there will be no change to your monthly repayment.
• If you're on a standard variable rate mortgage, there will be no change to your interest rate or your monthly repayment.
How will it affect your options for buying a home?
For those of you with a smaller deposit who are considering buying your first home, the number of products available with a 5% and 10% deposit has reached its highest in 17 years meaning you might be able to get on the property ladder earlier than expected.
Take a look at the best deals we currently have available:
If you’re buying for the first time: First Time Buyer Mortgage Deals
If you’re buying a brand new home: New Build Mortgage Deals
If you’re moving home: Home Moving Mortgage Deals
If you’re investing: Buy-to-let Mortgage Deals
The number of mortgage products available now stands at 6,993**, which is the highest since October 2007. With that many mortgage products available, finding the right one could feel overwhelming. Your situation is unique, and we'll act as your personal guide through this. From identifying the most suitable options for your needs, to providing clarity and confidence in making one of life's biggest financial decisions, we’ll help you save time and money.
Book an appointment today to talk to one of our advisers.
* based on mortgage loan of £300,000 and moving from Halifax’s current SVR rate of 7.74% to a 2 year fixed at 3.84% over a 25 year term (below 60% LTV, subject to lenders conditions). Saving £16,965.36 over two years.
** According to Moneyfacts data.
