Expert Knowledge & Professional Service

So far this month there has been a mixture of fixed-rate price increases and reductions despite market volatility.  

Many of the bigger banks and building societies have not raised the cost of their most competitively priced rates. This means some mortgages, mainly for those with larger deposits, are still priced at just over 4%.

Major banks like HSBC for Intermediaries, Barclays, and Halifax have maintained competitive mortgage offerings. HSBC, for instance, has a sub-4.10 % five-year fixed deal and Nationwide still has a sub-4.2% two-year fix.

Average mortgage rates fell at the beginning of this year, with the margin between two- and five-year fixed rates at its lowest level in two years. According to Moneyfacts UK, the average two-year fixed rate has dropped to 5.48%, while the average five-year fixed rate decreased to 5.25%. 

Aaron Strutt, product director at Trinity Financial, says: “Mortgage rates are susceptible to market confidence and pricing pressures. The cost of funding mortgages increased significantly a few weeks ago, but these rises have subsided, and it looks like prices may come down or at least stabilise over the coming days.”

City AM newspaper reports market traders anticipate just two Bank of England interest rate cuts this year, with one more cut priced in for 2026. This would leave the benchmark bank rate at 4.0 per cent, down from the current 4.75 per cent. However, Goldman Sachs has argued that money markets significantly underestimate the chance that the Bank of England will have to step up the pace of cutting interest rates. Fixed rates could get cheaper this year if the investment bank is correct.

Many outside pressures are bringing financial instability, prompting many borrowers to lock into five-year fixes for payment security. 

What else has been happening in the mortgage industry?

Nationwide for Intermediaries has increased the minimum income required to qualify for its 6x salary Helping Hand mortgage, potentially enabling first-time buyers to borrow up to 33% more than with Nationwide's standard products.

There is a regulatory limit on lending to customers with higher loan-to-income levels. To ensure Nationwide remains within these limits, the building society increased the sole applicant's minimum income required from £35,000 to £40,000.

The government is considering relaxing mortgage affordability rules to support first-time buyers in homeownership. It is also set to review the rules and tests regarding how much applicants can borrow relative to their income. Lenders are currently limited in the number of loans they can offer applicants who need to borrow 4.5 times their salary.

Nikhil Rathi, Chief Executive of the Financial Conduct Authority, recently wrote to the Prime Minister, Chancellor, and Secretary of State, saying he understands the need to remove unnecessary rules. The regulator will also “begin simplifying responsible lending and advice rules for mortgages, supporting home ownership.”

Santander is looking at exiting the UK market, according to press reports

Santander is reportedly contemplating leaving the UK market due to regulatory challenges and operational costs. 

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

The Stamp Duty holiday deadline is approaching, and lenders and brokers must manage borrower expectations, says the Intermediary Mortgage Lenders Association (IMLA).

In April the minimum stamp duty threshold will revert from £250,000 to £125,000; while for first-time buyers it will revert from £425,000 to £300,000.

Kate Davies, executive director of the Intermediary Mortgage Lenders Association, said: “Lenders are just as keen as brokers to ensure as many customers as possible can complete on their property transactions ahead of April 1^st, but congestion at the conveyancing stage is a real issue, and some borrowers will bear the brunt of higher Stamp Duty as a result.

“Industrial action at the Land Registry will not help when it comes to transfer of title post-completion, particularly with those less routine cases which cannot be dealt with via an automated process.

“It is more important than ever that we keep the lines of communication open between lender, broker and borrower in the weeks ahead.”

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Banks and building societies will be hoping for a busy start to 2025 by offering competitively priced rates and more generous loan sizes. However, as the value of the pound falls and government borrowing costs rise following Rachel Reeves's budget, fixed-rate mortgage price hikes may not be far away.

HSBC has announced two separate mortgage rate improvements this year, while Halifax lowered some rates by up to 0.35%. Most mortgage lenders still offer a range of competitively priced fixed rates, including HSBC's two-year fixes priced around 4.2% and its five-year fix priced just over 4%, but these rates may not be available for long.

Mortgage lenders are undoubtedly offering more generous income multiples and larger loan sizes, partly because the Bank of England base rate changes have enabled them to reduce their affordability stress tests. 

Santander is still forecasting four base rate cuts from the Bank of England in 2025 despite sticky inflation and turbulent bond markets.

Santander forecasts four base rate cuts from the Bank of England in 2025, despite sticky inflation and turbulent bond markets.

Frances Haque, the Chief Economist at Santander UK, said, “This month, we’re already seeing swap rates edge up as they respond to volatility in the bond market, caused by an uncertain economic outlook for 2025 both at home and abroad. As such, lenders may well – in the short-term - nudge up pricing to reflect the higher swaps.

"With just less than a month to go until the next Monetary Policy Committee announcement, all eyes are on this week’s inflation and GDP data to give some indication of how close the next cut from the Bank will be. As it stands, with inflation proving to be more persistent but with growth weakening, the MPC is likely to proceed cautiously. Our own forecasts continue to expect a further four cuts over the course of this year, with base rate ending the year at 3.75%, and remaining between 3-4% for the foreseeable.”

Call Trinity Financial on 020 7267 9399 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

TSB for Intermediaries is offering a new mortgage option to help tenants buy rented homes from their landlords.

TSB’s “5&5 concessionary mortgage” is available when landlords offer tenants a 5% discount on the purchase price. The buyer also needs to contribute at least 5% as a deposit.

The mortgage will operate in addition to TSB’s 10% scheme. Under this option, landlords sell their property to tenants at a 10% discount or more on its market value, meaning the buyer doesn’t need a deposit.

According to the government's latest English private landlord survey, the lender points out that 31% of landlords plan to sell properties they rent out over the next two years, often because of increased mortgage costs, higher taxes and additional regulation.

Increased mortgage costs mean many landlords want to release their gains and exit the market. A 5% discount could be offset by the savings on estate agency fees and not missing out on several months of rental payments.

Aaron Strutt, product director at Trinity Financial, says: “This is a pretty niche product from TSB, but it is helpful for landlords and tenants. Concessionary purchase mortgages are usually related to family property transactions, such as when a parent sells to their adult children at a reduced price.

“Some landlords are keen to sell their properties to long-standing tenants because they have a good relationship with them but also because they don’t have to go through the hassle of finding a buyer or paying estate agency fees.”

TSB’s product means tenants with more generous landlords and a 5% deposit can access slightly cheaper mortgage rates. Some lenders are offering no-deposit mortgages or 3% deposit mortgages.

Roland McCormack, mortgage distribution director at TSB, said: “This can be a great option for the buyer as they get a discount, but also because they know the area and the property well already. It makes the process easier and smoother. For the seller, it makes the process easier and smoother. They don’t have to have a tenant move out of the property, do it all up, and then wait several months – all while not receiving rent."

Could Skipton's Track Record mortgage be an alternative option? 

Skipton for Intermediaries is still offering its 100% Track Record mortgage to those renting and not owning a property in the last three years.

Applicants must have paid all the rent for 12 months in a row, within the last 18 months and the lender may want to see proof that household bills have been paid and on time. Borrowers must be over 21 to apply, have no missed payments on any credit agreements within the last six months, and borrow up to £600,000.

Call Trinity Financial on 020 7267 9399 to secure a buy from your landlord mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

UK Finance has published its housing and mortgage market forecasts for 2025. This year, it expects gradual mortgage affordability and market growth improvement, fueled by lower mortgage rates and cost pressures.

UK Finance, the trade body representing 300 financial firms, expects mortgage lending to homebuyers to rise by 10% on last year to £148 billion by the end of 2025. The trade body also predicts that the number of people remortgaging away from their existing bank or building society will increase by 30% to £76 billion. 

Incredibly, the number of people sticking with their existing lenders when their mortgage rates end is due to rise by 13% to £254 billion, and buy-to-let mortgage lending is set to drop by 7% to £9 billion.

Upbeat forecast for 2025

UK Finance’s latest figures provide an upbeat forecast for 2025. Lower interest rates and easing cost of living pressures will increase mortgage affordability and buying activity.

The organisation says its predictions are based on a good 2024, which, although it saw activity well below previous years, 2025 should see considerable rises in mortgage lending as economic confidence returns.

Source: UK Finance

Anthony Emmerson, director of Trinity Financial, says: "We are optimistic about the upcoming year, especially as lenders are keen to issue more mortgages. However, there are things to be concerned about, particularly with Donald Trump becoming president again in a few weeks with potential trade tariffs and their effect on our inflation position here in the UK plus the ongoing wars.

“I still expect the Bank of England base rate to come down a few times this year and mortgage rates to edge down, boosting the property market and making mortgages more affordable. 2025, in particular, has a higher number of remortgages coming up for renewal, and the sooner borrowers can secure a rate, the better. We consistently swap our clients to cheaper rates when they come down, but the important thing is to get a deal agreed.”

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage 

Vida Homeloans has launched a range of 97% loan-to-value mortgages designed to help borrowers get on the property ladder with a 3% deposit.

The specialist mortgage bank's new ‘3 & Easy’ products have been designed to help long-term renters and first-time buyers get a foot on the property ladder or begin to move up the chain. 

The lender offers a choice of five- and seven-year fixed rates, starting from just below a rather high 7.50%, and there is a £995 arrangement fee to access the most competitively priced rates. The products are available to employed and self-employed borrowers, applicants with some adverse credit, those with complex or second job income, and contractors.

There is also a potential loan term of up to 45 years, assisting customers even further with affordability. Part of the mortgage is available on interest only; the minimum loan size is £50,000, and the maximum loan size is £750,000.

Aaron Strutt, product director at Trinity Financial, says: “The rates are not cheap, but there are not many mortgage options available to borrowers with really small deposits of less than 5%. Vida's rates are available for property purchases and remortgages, which is unusual.

"Many low- or no-deposit mortgages are available to borrowers with a track record of renting and first-time buyers. Accord Mortgages has a 1% deposit mortgage, and Skipton has a no-deposit mortgage available to renters. TSB has also just launched a 5% deposit mortgage for renters, and landlords willing to give 5% equity when they sell to their tenants."

Does taking Vida's 3% deposit mortgage at such a high rate makes sense?

Before borrowers opt for a rate like this, they need to make sure there are no alternative and cheaper options, or they can’t get a bigger deposit by saving up for longer or tapping into the Bank of Mum and Dad.

If you are willing to pay nearly 7.5% for a mortgage, you will probably take a smaller loan size. After five years, borrowers can switch lenders without paying an exit fee, and hopefully, they can get a better rate, providing they have at least 5% equity in the property.

This deal is designed to get people who want to get on the property ladder when they have a minimal number of alternatives.

Call Trinity Financial on 020 7267 9399 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage