Mortgage Market News 2025

Mortgage News – 28th April 2025

Mortgage rate and criteria changes remained a key focus, with several lenders, including Halifax, Nationwide, Virgin Money, and Gen H, announcing reductions of up to 0.30% across various product ranges. Coventry and The Mortgage Works also introduced improvements to their limited company buy-to-let offerings, while April Mortgages launched a new affordability model offering up to 7x income for longer-term deals. Meanwhile, HM Land Registry reported over 1.9 million applications completed in March, insolvency rates edged higher year-on-year, and swap rates continued to fall through April 2025.

Mortgage Rate & Criteria Changes

Halifax reduced mortgage rates, with a new 2-year fixed-rate product launched at 3.94%, a 0.09% drop from 4.03%.
Nationwide initially reduced selected 2-, 3-, and 5-year fixed rates by up to 0.25% for first-time buyers and home movers, then further cut remortgage and switcher rates by up to 0.29% across 2-year, 3-year, and 5-year fixed and 2-year tracker products.
Virgin Money reduced selected residential and buy-to-let fixed mortgage rates by up to 0.16%, covering purchase, remortgage, and product transfer ranges.
Gen H reduced 2-year fixed mortgage rates by up to 0.30%, with 90% LTV products lowered by 0.15% and 95% LTV products reduced by 0.30%.
Principality Building Society reduced rates across its fixed-rate mortgage range, with cuts of up to 0.16% for residential, buy-to-let, JBSP, and holiday let products.
MPowered Mortgages reduced its full range of fixed mortgage rates for the second time, with 2-year, 3-year, and 5-year fixed rates now starting from 3.92% to 4.23% following continued falls in swap rates.
Aldermore reduced fixed mortgage rates by up to 0.30% and launched new limited edition buy-to-let and residential owner occupier products for both new and existing customers.
Precise launched limited edition residential mortgage products, including a 2-year fix from 4.79% with a 1% fee and 5-year fixes from 5.14% offering £0 fees, refunded valuations, and £300 cashback.
Fleet Mortgages reduced fixed rates by 0.15% across its 2-year and 5-year buy-to-let product ranges, including standard, limited company, and HMO/MUFB mortgages.

HM Land Registry Completed Over 1.9 Million Applications in March 2025

HM Land Registry completed over 1.9 million applications in March 2025, an increase from 1.8 million in February and higher than the 1.86 million recorded in March 2024. The South East recorded the highest number of applications, totalling 444,651 for the month. Applications for register updates, official copy requests, and search queries all saw notable rises compared to the previous month. March 2025 Transaction Data

Individual Insolvency Figures Show Slight Rise Compared to Last Year

In March 2025, 9,205 individuals entered insolvency in England and Wales, 7% lower than in February but 2% higher than March 2024. Debt relief orders (DROs) remained high following the removal of the £90 fee in April 2024, although March saw a slight monthly decline. Overall, the insolvency rate for the year ending March 2025 rose, with one in 415 adults affected compared to one in 469 the previous year. Commentary – Individual Insolvency Statistics March 2025

April Mortgages Introduced Up to 7x Income Affordability for Longer-Term Deals

April Mortgages announced a new affordability model allowing borrowers to access up to 7 times their income for 10- or 15-year fixed deals up to 85% LTV, aimed at households earning £50,000 or more. Brokers viewed the move as both innovative and bold, potentially opening doors for many buyers but also raising concerns over future remortgaging challenges. The product was praised for offering flexibility on home moves and overpayments, although some cautioned it might push borrowing limits too far in the current rate environment.

Coventry for Intermediaries Expanded into Limited Company Buy-to-Let Mortgages

Coventry for intermediaries launched limited company buy-to-let mortgages to support brokers working with landlords using a company structure. The new offering allowed for both remortgage and purchase applications, with up to four directors or shareholders named and access to an extensive conveyancing panel. In addition, the lender increased its maximum lending exposure to £2.5 million and expanded portfolio limits to fifteen properties.

The Mortgage Works Enhanced Criteria for Limited Company Landlords

The Mortgage Works improved its support for limited company landlords by allowing applications where not all applicants are directors, accepting shareholders with at least a 20% stake. This change responded to growing demand from landlords and feedback from brokers, reflecting evolving company structures. The Mortgage Works reaffirmed its commitment to the limited company buy-to-let market with this latest update.

Swap Rates Continued to Fall in April 2025

Swap rates continued their downward movement, with the 2-year rate dropping to 3.631% on 24 April 2025, down 0.109% from last week’s 3.740%. This also reflected a 0.473% fall compared to last month and a notable 1.035% drop from the same period last year. Similarly, the 5-year swap rate fell to 3.641%, showing a 0.101% decline from last week, a 0.411% fall from last month, and 0.545% lower than a year ago.

Swap Rate	24-Apr-25	25-Mar-25	25-Apr-24
2 Year	3.631%	4.104%	4.666%
5 Year	3.641%	4.052%	4.186%

Updated 25^th April 2025

Mortgage News – 22nd April 2025

Lenders continued to intensify competition in the mortgage market last week, with The Mortgage Works, Virgin Money, Santander, and HSBC all announcing rate cuts and product enhancements, including cashback deals and free valuations. Halifax and BM Solutions introduced affordability improvements, while low deposit mortgage availability rose to a 17-year high, showing strong support for a wide range of borrowers. Meanwhile, inflation dropped to 2.6%, swap rates edged up slightly, and demand for secured lending remained robust, all strengthening expectations of a Bank of England base rate cut in May.

Mortgage Rate & Criteria Changes

Virgin Money reduced fixed rates across residential and buy-to-let products by up to 0.17% and introduced free valuations on all new purchase applications.
Santander reduced fixed rates across its mortgage range, introducing sub-4% 2-year and 3-year deals for home movers and existing borrowers, with cuts of up to 0.21% for first-time buyers.
HSBC reduced rates across selected mortgage products, enhancing competitiveness for both homebuyers and those looking to remortgage.
The Mortgage Works reduced fixed rates by up to 0.25% and introduced a new cashback product range for limited company landlords.

Halifax’s Mortgage Affordability Changes Mark a Welcome Shift in Lending Appetite

Halifax introduced enhanced affordability measures on its 5-year fixed mortgage products, allowing some borrowers to access up to £38,000 more based on their income. BM Solutions also eased its lending model, increasing borrowing potential by basing more decisions on rental income across both 2-year and 5-year deals. These updates were welcomed by brokers as signs of growing lender flexibility during a time of global financial uncertainty.

Low Deposit Mortgage Options Reach Highest Level Since 2008

The number of low deposit mortgage products rose to a 17-year high, with 90% and 95% loan-to-value (LTV) deals reaching their highest levels since March 2008. According to Moneyfacts Choice of low deposit mortgages rises to 17-year high, the number of 95% LTV deals increased to 442, while 90% LTV deals grew to 845. Overall mortgage product availability also climbed month-on-month to 6,870, the highest since October 2007.

Markets Weigh Inflation Risks Ahead of May Rate Decision

Markets priced in a 77% chance of a Bank of England rate cut to 4.5% in May, but this expectation was tempered by uncertainty surrounding inflation figures. Analysts suggested that a print above 3.2% could derail the anticipated rate cut, particularly amid external pressures like US tariffs and a weaker pound. While some experts remained hopeful the Bank might proceed with a cut despite a modest inflation rise, many agreed the decision would hinge on balancing inflation control against economic stagnation.

Inflation Falls to 2.6%, Boosting Likelihood of May Rate Cut

UK inflation dropped to 2.6% in March, down from 2.8% in February, strengthening the case for a Bank of England rate cut in May. Key downward pressures came from recreation, fuel, and housing-related costs, though concerns remain that the fall may be short-lived due to wage growth and tariff-related inflation. While many experts now see a 0.25% cut as likely, they caution that future inflationary pressures could complicate the Bank’s longer-term path. Consumer price inflation, UK: March 2025

UK House Prices Rise 5.4% as Market Defies Expectations Once Again

UK average house prices increased by 5.4% to £268,000 in the year to February 2025, up from 4.8% in January, showing continued strength in the housing market. England, Scotland, and Wales all saw annual price increases, with Scotland seeing the highest rise at 5.7%. Meanwhile, average private rents across the UK rose by 7.7% in the year to March, with rent growth outpacing both inflation and wage increases, putting further strain on renters.

BoE Survey Shows Increased Lending Demand in Q1, Boosted by Stamp Duty Deadline

The Bank of England’s Q1 Credit Conditions Survey revealed a slight rise in the availability of secured credit and increased demand for house purchase and remortgaging. Much of the demand in Q1 was likely driven by the stamp duty deadline, though confidence appears to have continued into February despite the reduced chance of beating it. Lenders also reported narrower lending spreads, while default rates remained stable, though losses given default edged higher and are expected to rise further in Q2. Credit Conditions Survey – 2025 Q1

Swap Rates Edge Higher Over the Past Week but Remain Below Monthly and Annual Levels

Swap rates rose slightly over the past week, with the 2-year rate increasing by 0.058% to 3.740% and the 5-year rate rising by 0.031% to 3.742%. Despite this weekly uptick, both rates are notably lower than they were a month ago, down 0.256% and 0.183% respectively. Compared to the same time last year, the drop is even more pronounced, with the 2-year rate down by 0.927% and the 5-year by 0.389%.

Swap Rate	16-Apr-25	17-Mar-25	17-Apr-24
2 Year	3.740%	3.996%	4.667%
5 Year	3.742%	3.925%	4.131%

Updated 21^st April 2025

Mortgage News – 14th April 2025

Lenders made a series of rate and criteria changes over the past week, responding to falling swap rates and competitive market conditions. Coventry Building Society, Barclays, TSB, and others introduced reductions across their product ranges, though some cuts were short-lived. Meanwhile, enhancements such as Nationwide’s lower income threshold for Helping Hand and Barclays’ deposit-free Right to Buy offering aimed to improve access to homeownership.

Mortgage Rate & Criteria Changes

Coventry Building Society initially reduced residential fixed rates by up to 0.25%, including a sub-4% 2-year deal, but later reversed some of these cuts with a rate increase.
Barclays reduced selected fixed mortgage rates by up to 0.29%, with key 2-, 3-, and 5-year products now priced at 3.99%.
TSB reduced selected residential, product transfer, and additional borrowing mortgage rates by up to 0.25%, including a 0.25% cut on 2-year fixed deals for first-time buyers and home movers at 75% to 85% LTV.
Clydesdale Bank adjusted selected mortgage rates with reductions of up to 0.64% on higher LTV residential and professional products, while increasing rates by up to 0.19% on lower LTV fixed deals across its core, exclusive, and professional ranges.
Gen H reduced all 2-year fixed rates by 0.15% and all 3- and 5-year fixed rates by 0.20% on products up to 80% LTV, including a 0.20% cut to its New Build Boost rate.
Accord Mortgages reduced residential fixed rates by up to 0.25% and buy-to-let rates by 0.15%, with new highlights including a 2-year residential fix at 5.00% (down from 5.25%) and a 5-year buy-to-let fix at 4.89% (down from 5.04%).
Paragon Bank introduced 80% LTV BTL mortgages and reduced rates by up to 0.10%, while removing application fees on selected products.
The Mortgage Works reduced selected 2-year fixed buy-to-let remortgage rates by 0.10%, including a 4.34% option with a £1,495 fee and a fee-free alternative at 4.74%, both up to 65% LTV.

March Mortgage Market Shows Split Between Remortgage and Purchase Activity

Twenty7tec’s Market Report – March 2025 showed remortgage searches rose by 13.8% month-on-month, while purchase activity dipped by 2.4%, reflecting borrower caution amid ongoing rate uncertainty. Buy-to-let and residential remortgage searches also saw double-digit growth, while interest in 2-year fixed products declined, with borrowers showing increasing preference for 3- to 5-year terms. Year-on-year, first-time buyer searches were up 10.46%, and adviser tool usage surged, indicating continued market engagement despite mixed signals.

First-Time Buyer Mortgage Searches Surge 45% in Q1 2025

Legal & General Q1 2025 reported a 45% increase in first-time buyer mortgage searches in Q1 2025 compared to the previous quarter, with notable rises among both younger and older age groups. The most popular property value range was £150,000 to £250,000, while high loan-to-value searches, particularly in the 91% to 95% range, made up a significant share. The trend reflects growing confidence among first-time buyers amid lower mortgage rates and wider product availability.

Nationwide Lowers Income Threshold for Helping Hand Scheme

Nationwide has reduced the minimum income requirement for its Helping Hand mortgage scheme to £35,000 for sole applicants, while keeping the joint applicant threshold at £55,000. The scheme enables borrowing up to six times income on 5- or 10-year fixed deals up to 95% LTV, significantly above standard limits. Eligible first-time buyers can also receive up to £1,000 in cashback when purchasing energy-efficient homes.

Barclays Removes Deposit Requirement for Right to Buy Buyers

Barclays has launched a new Right to Buy initiative allowing eligible borrowers to purchase a home without a deposit, using the RTB discount as equity instead. This enables buyers to access lower LTV rates based on the discount received, with lending capped at 90% of the property’s market value. The move is part of a wider effort by Barclays to improve homeownership access, alongside new affordability tools and increased high LTV loan limits.

UK GDP Rises by 0.5% in February but Markets Remain Sceptical

The UK economy grew by 0.5% in February 2025, outperforming expectations and marking the strongest monthly expansion in nearly a year, driven largely by the services and production sectors. Despite this, market reaction was muted, with Sterling falling and business leaders questioning the sustainability of the rebound amidst upcoming tax hikes and global economic uncertainty. Many see this growth as a temporary lift, warning that challenges including Trump’s tariff policy and domestic cost pressures could soon reverse gains. GDP monthly estimate, UK: February 2025

UK House Prices Fell Slightly in March Following Stamp Duty Deadline Rush

UK house prices declined by -0.5% in March, equating to a reduction of £1,575, as the housing market adjusted following a busy start to the year driven by the stamp duty deadline according to Halifax House Price Index March 2025. Despite the monthly fall, annual house price growth remained steady at +2.8%, with the average property now valued at £296,699. Market commentators noted that while demand dipped slightly after the surge, expectations of potential rate cuts and falling swap rates could reignite buyer activity in the coming months.

FCA Reappoints Nikhil Rathi as Chief Executive Until 2030

Nikhil Rathi has been reappointed as chief executive of the Financial Conduct Authority for a second five-year term, extending his leadership until September 2030. The decision, confirmed by Chancellor Rachel Reeves, underlines the government’s commitment to regulatory stability and continued reforms to drive economic growth. Rathi’s renewed tenure is expected to build on his first term’s efforts to enhance consumer protection, improve operational efficiency, and support investment in the financial sector.

Swap Rate Volatility and Trump’s Tariffs Shake Up Mortgage Market

A series of events beginning with Donald Trump’s tariff announcements has triggered notable shifts in UK swap rates, leading brokers to anticipate a wave of fixed mortgage rate cuts. Swap rates fell sharply, fuelling hopes of sub-4% deals on 2- and 3-year fixed products, and lenders like TSB, Gen H, and Pepper responded quickly with reductions of up to 0.4%. However, Trump’s subsequent 90-day pause on tariffs raised speculation about market pressure, with many suggesting the decision was a response to sharp bond market reactions rather than a premeditated strategy.

Swap Rates Fall Sharply as Markets React to Global Uncertainty

Swap rates declined again over the past week, with the 2-year rate dropping to 3.682%, a 0.145% fall from last week’s 3.827%, and down 0.293% compared to last month. The 5-year swap rate also edged down to 3.711%, a 0.049% decrease from last week and 0.220% lower than a month ago. Year-on-year, the 2-year swap rate has fallen by a notable 0.919%, while the 5-year rate is down 0.336%, reflecting ongoing market volatility and anticipation of monetary easing.

Swap Rate	10-Apr-25	11-Mar-25	11-Apr-24
2 Year	3.682%	3.975%	4.601%
5 Year	3.711%	3.931%	4.047%

Updated 11^th April 2025

Mortgage News – 7th April 2025

Last week, lenders made several product and criteria changes this week, with new offerings from Precise and Quantum Mortgages expanding options for borrowers. Bank of England data showed a slight dip in mortgage approvals, while the Government announced over 1,000 new flood defence schemes across the UK. Market sentiment shifted following President Trump’s Liberation Day speech, increasing expectations of economic support measures in the UK.

Mortgage Rate & Criteria Changes

Barclays increased rates by up to 0.10% on selected purchase and remortgage products.
Halifax adjusted selected fixed-rate mortgage products with increases of up to 0.16%.
Virgin Money increased selected 5-year fixed rates by up to 0.14% across purchase, remortgage, and product transfer products.
Skipton Building Society reduced rates by up to 0.32% across 124 mortgage products.
Coventry for intermediaries reduced selected residential rates by up to 0.24% and buy-to-let rates by up to 0.15%.
Principality Intermediaries reduced rates by up to 0.30% across residential, buy-to-let, Shared Ownership, and holiday let mortgages.
Precise Mortgages reduced rates by up to 0.70% and launched products up to 95% LTV whilst reducing their stressed rates on 2 and 3 year products.

Quantum Mortgages launched a new bridging finance range with flexible terms and instant decisioning.

BoE Data Showed Slight Dip in Mortgage Activity as Stamp Duty Deadline Approached

Mortgage approvals for house purchases decreased slightly in February, dropping by 600 to 65,500, following a smaller fall in January, according to the Bank of England Money and Credit – February 2025. Remortgaging approvals also declined, falling by 800 to 32,000 after an increase the month before. Additionally, net mortgage borrowing by individuals fell by £0.9 billion to £3.3 billion in February, down from January’s £4.2 billion.

Government Announced Over 1,000 Flood Schemes to Protect Homes and Businesses

The Government and Environment Agency confirmed plans to build or repair more than 1,000 flood defence schemes across the UK at a cost of £2.65 billion. Major projects receiving funding include schemes in Derbyshire, Hampshire, Lancashire, Dorset, Yorkshire, and Suffolk, collectively aiming to protect thousands of properties. The announcement sparked discussion among mortgage professionals, who warned that despite this investment, buying in flood-prone areas can still pose financial challenges due to lender caution and insurance costs. Government to build over 1,000 flood schemes across the country

Annual House Price Growth Held Steady at 3.9% in March

Nationwide reported that the annual rate of house price growth remained unchanged at 3.9% in March, showing market stability despite the end of the stamp duty incentive. Northern Ireland led regional performance with a 13.5% year-on-year rise, while London recorded the weakest growth at 1.9%. Overall, house prices held steady across most UK regions during the first quarter of 2025. Nationwide: Annual house price growth steady in March

Buy-to-Let Lending Surged by Nearly 40% in Q4 2024 Amid Rising Investor Confidence

UK Finance reported a significant rebound in the buy-to-let market during Q4 2024, with 52,648 new loans advanced – a 39.2% rise by volume and 47.2% by value compared to the same period in 2023. Average rental yields increased to 7%, interest rates on new loans eased to 5.09%, and arrears fell by 7% year-on-year. However, possessions rose by 29.6%, highlighting continued pressure on some landlords, particularly those on legacy variable rate deals. UK Finance Buy-to-Let Lending 2024 Q4

Trump’s Liberation Day Speech Sparked Market Volatility, Boosting Hopes for UK Rate Cut

Markets reacted sharply to President Trump’s Liberation Day speech, increasing the likelihood of a Bank of England rate cut in May. Brokers suggested that the tariffs announced could slow global growth, prompting policymakers to lower rates to protect the UK economy. While uncertainty remains, many in the mortgage industry believe the disruption could translate into lower borrowing costs for UK homeowners.

Swap Rates Dropped Sharply Following US Liberation Day, Boosting Hopes for UK Rate Cuts

Swap rates fell significantly this week, with the 2-year rate dropping to 3.827%, down 0.214% from last week and 0.538% lower than the same time last year. The 5-year rate declined to 3.760%, a fall of 0.272% over the week and slightly below last year’s 3.818%. These movements came in the wake of the US Liberation Day, where President Trump’s tariff announcements triggered a global market reaction.