3 Jan 2025
Expectations for mortgage rates and house prices in 2025
The general feeling is that UK homebuyers and homeowners are hoping for stability in 2025, which is understandable following a year of fluctuating mortgage rates. In 2024 two-year fixed rates were between 4.34% in January to 4.92% in July ending the year at 4.21%.*
What will happen in 2025?
We are hoping that mortgage rates will ease this year, but how drastically depends on inflation trends, swap rates, and the Bank of England’s decisions in which way the base rate should go.
There are of course still challenges, especially for first time buyers who face affordability barriers, with an increase in rent and cost of living making it harder to save for a deposit. The upcoming changes to the stamp duty land tax means from April 2025 first time buyers will no longer be exempt on properties up to £425,000, as this is being dropped to £300,000 potentially adding thousands to the cost.
Housing
There is an expectation that house prices will be up and down in the year ahead with a possibility of an increase in homebuyers early on in the year as people try to complete deals before the stamp duty changes. Zoopla forecasts a 2.5% rise in property values.
What should I do?
At Mortgage Required, we still recommend getting onto the property ladder if it is affordable for you. It is important to remain proactive and secure a rate as soon as possible to protect you from the volatility of the market and review this rate regularly to take advantage of any reduction or changes in the perception of the market.
If you are a first time buyer or a homeowner nearing the end of your fixed term, we strongly encourage you to reach out to a whole of market broker who can help you find a competitive rate. Get in touch with the team today: 01628 507477.
*Rates shown are the best available rates at the time.
Recent posts
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
5 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
28 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
