MORTGAGE MARKET UPDATE 24.5.25

Here's the latest Mortgage Market update from our Mortage Partner Dean Williams, Director,  Oakwood Independent Mortgage Brokers

 

The market certainly feels very temperamental to start 2025, however current predictions of the road ahead are positive so I thought I would share a general mortgage market overview which will hopefully give you a detailed overview of the whole financial picture.  These facts and figures are provided by lenders, economists within those lenders and general market news reporting.

 

Mortgage Market News

  • Swap rates continue their downward trend and as of 17th April 2yr and 5yr money were similarly priced at 3.669% and 3.691% respectively.

 

  • There is a bit of a rate war with the big 6 competing on sub 4% 2yr deals.  This is down to the uncertainty of the economy and the expectation of a further 0.25bp cut by the Bank of England.

 

  • The number of low deposit deals i.e. 95% Loan to value products available has reached its highest level since 2008.  This has come about amid changes to affordability and loosening of underwriting requirements encouraged by the Government and regulatory easing.

 

  • Intermediary Mortgage Lenders Association (IMLA) predict an increase of 16% in gross mortgage lending to £275 billion in 2025 and rising to £295 billion in 2026

 

  • IMLA state that house purchase lending is expected to reach £177 billion in 2025 rising to £190 billion in 2026 and re-mortgage activity is expected to reach £88 billion in 2025 rising to £94 billion in 2026

 

  • The buy-to-let market is expected to recover, with gross lending potentially reaching £38 billion in 2025 and £42 billion in 2026.

 

  • Next meeting for the MPC to discuss the BOE rate is 8th May, There is thought that the BOE will cut interest rates again by 0.25bps.

  

I appreciate this is a lot of words and numbers, however the general picture is that interest rates are reducing, the Bank of England are under pressure to cut the Base Rate at their next review on the 8th May with a couple of further reductions a possibility later in the year, lenders are fighting for business and are increasing their propositions to support the market and property purchases and mortgage borrowing are inspected to rise and continue to do so throughout 2025 and in to 2026.

 

Now to just to keep our fingers crossed this all come to fruition.

 

Regards, Dean Williams, Director,  Oakwood Independent Mortgage Brokers