Mortgage Market Update: Navigating the Changes

The past few weeks have brought significant shifts in the political and economic landscape, both at home and abroad. Some changes are promising, while others present challenges to navigate. To help you stay informed, here’s a brief update on how these developments are shaping the mortgage market, with expert advice from our partners at Akers Pritchett.

“In the wake of the UK budget announcement and Donald Trump’s election victory in the US, we’ve seen notable changes in mortgage swap rates. This shift is largely due to expectations that the Bank of England may take longer than anticipated to reduce the base rate.

As a result, fixed mortgage rates have edged upwards. However, thanks to the recent Bank of England base rate reduction, tracker rate mortgage products have seen a decrease.”

Whilst advise that whilst fixed rates have increased slightly, they remain much lower than their peaks last year. Akers Pritchett have given a snapshot of the current rates:

• 2-Year Fixed Rates: Starting from 3.96%
• 5-Year Fixed Rates: Starting from 3.84%
• Best Tracker Rate: 4.83% (0.08% above the Bank of England base rate)

Lenders offering the most competitive rates often require a 40% deposit. However, there are still attractive options for those with lower deposits:

• 10% Deposit: Fixed rates available from 4.49%

While headlines may paint a negative picture of the housing and mortgage markets, the reality isn’t quite as bleak. Since the recent Bank of England base rate cut, buyer demand has surged. The number of people contacting estate agents about homes for sale has risen 23% compared to the quieter 2023 housing market. Additionally, the number of sales agreed is up by an impressive 26%.

Thinking of buying or selling in Nottingham? We're here to make it easy! As a trusted, award-winning Estate Agents in Nottingham, we combine outstanding service with the latest technology to help you get the best results. Reach out today – we're ready to help you with every step!