Mortgage News & Updates

The Bank of England has kept interest rates at 4%, as inflation steadies at 3.8%. Borrowers now face a narrow window to secure favourable mortgage deals before potential cuts reduce rates further.

A new mortgage price war has erupted ahead of the November Budget, with major high street lenders cutting fixed-rate deals to attract borrowers amid a subdued housing market. Falling swap rates and gilt yields have allowed banks to reduce borrowing costs, fuelling fresh competition across the sector as lenders vie for new business.

Markets now predict a 70% chance of a Bank of England rate cut before Christmas after inflation unexpectedly held at 3.8% for a third consecutive month. The steadiness in prices has renewed hopes that borrowing costs could begin easing as early as December.

Lenders across the UK mortgage industry have voiced strong support for the government’s £8 billion plan to reform the home buying and selling process — a move expected to reduce the one-in-three property transactions that currently fall through, costing consumers and the economy hundreds of millions each year.

The government’s decision to maintain current Stamp Duty thresholds through 2025 has been welcomed by homebuyers and landlords alike. Experts suggest the extension will help sustain market activity and provide much-needed stability amid ongoing affordability pressures.

Up to 8,500 Affordable Homes across England could remain unoccupied, as more than 700 developments face delays due to reduced funding from housing associations. The Home Builders Federation warns that the slowdown threatens small builders and could worsen the housing shortage.

The number of houses in multiple occupation (HMOs) across England has risen by 2.3% over the past year, reaching nearly 473,000. But while some regions and local authorities have seen huge increases, others recorded steep falls, reflecting stark regional disparities in the sector.

London and southern England buyers are enjoying the largest boost in affordability, with monthly mortgage savings of up to £181 compared to last year, as asking prices soften and mortgage rates fall.

UK construction activity fell again in August, marking eight straight months of contraction, as housing and civil engineering continued to struggle, according to S&P Global’s Construction PMI.