Expert Knowledge & Professional Service

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 4.20% two-year fix and its 4.06% five-year fix, 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.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 

Major mortgage lenders have been improving their fixed rates as they continue to compete for business and try to meet their end-of-year sales targets. 

Santander, HSBC, NatWest and a host of smaller lenders have lowered their fixed rates recently, so we are getting closer to seeing a sub-4% mortgage again. We expect more mortgage price reductions over the coming weeks, even though it is unlikely there will be a cut to the Bank of England base rate before Christmas. 

NatWest has launched the most competitively priced five-year fix at 4.07%, and it is available to homebuyers borrowing between £25,000 and £2 million. There is a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify. Santander also has a two-year fix priced just over 4.2% with a £999 fee for borrowers with larger deposits and a clear credit history.

Significant changes have been made to the stress test figures used in the lender's mortgage affordability calculations to work out maximum loan sizes, leading to borrowers accessing more generous loan sizes.

Halifax has also started offering larger loans to borrowers buying homes with high Energy Performance Certificate ratings. 

More mortgages are set to be issued next year

UK Finance, the trade association for the UK banking and financial services sector, has published its housing and mortgage market forecasts for 2025, predicting gross mortgage lending will be up 11% on this year, hitting £260bn. House purchase lending is also expected to rise by 10% to £148bn.

The product transfer market, where homeowners switch rates with their existing lender rather than remortgage to another lender, is set to increase by a whopping 13% to £254bn.

With rate and cost pressures set to ease, the outlook for 2025 is for a gradual improvement in mortgage affordability, feeding into market growth. As interest rates tick down, UK Finance expects arrears to continue to fall, with tailored forbearance helping those who need it.

How much would NatWest's 4.07% fixed mortgage cost?

Representative example: A capital and interest Natwest mortgage of £350,000 payable over 30 years, initially on a fixed rate basis at 4.07% until 30/04/2030 and then on the lender's 7.74% standard variable rate for the remaining 25 years. The 4.07% rate would require 63 monthly repayments of £1,685.11 followed by 297 payments of £2,385.77. The total amount repayable would be £815,760.62 made up of the loan amount, plus interest (£464,734.62) and £995 (product fee), £65 (final repayment charge), £30 (completion fee). The overall cost for comparison is 6.5% APRC representative.

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

Halifax for Intermediaries is starting to use the Energy Performance Certificate ratings (EPC) on flats and houses to determine the maximum mortgage loan size.

Halifax says the EPC ratings will help the bank reflect the impact of home energy costs and some of the financial benefits of more energy-efficient homes. 

A customer whose property has a higher EPC rating, say A or B, will generally have lower energy costs than those with a lower EPC rating. This means that due to the way mortgage affordability rules work, Halifax expects borrowers will have more disposable cash so they can borrow more. They also have to spend less in the future to improve their property's energy efficiency.   

Mortgage applicants may see a slight increase in the maximum loan amount available for properties with an A or B Energy Performance Certificate rating and a slight decrease for properties with an F or G rating. The bank says there is no change to the maximum loan amount available for properties with a C, D, or E EPC rating or where the EPC is unknown.

Aaron Strutt, product director at Trinity Financial, says, "Mortgage lenders have been doing more to tempt borrowers with cheaper rates if they have an A, B, or C energy efficiency rating. They do not usually offer to lend them more money. Halifax's move isn't great for borrowers buying older or energy-efficient homes, but other lenders may start doing something similar next year. 

"Within the Halifax mortgage affordability model, assumed ‘cost of living’ values are already incorporated, which include energy costs. The new adjustment reflects a more tailored view of these costs." 

Halifax says it will continue to support customers looking to improve the energy efficiency of their properties with its Green Living Reward cashback proposition and partnerships with heat pumps, solar panels, and insulation installers. The lender offers £2,000 cash back when adding an air—or ground-source heat pump and £500 cash back when installing a biomass pellet boiler or solar thermal heating system.

The bank also offers cash back for solar panels, insulation, and rated double/triple glazing when replacing single glazing. Customers must open a Halifax current account to qualify, and there are time constraints for claiming the cashback. 

Rightmove's Greener Homes Report 2024

Rightmove's Greener Homes Report 2024 outlines the current obstacles and suggests ways to accelerate the transition to a greener housing stock. It also looks at the emergence of a ‘green wealth divide’, the impact of the new government’s 2030 EPC targets for rental homes, and the things that could be done to help households go greener.

The report highlights: 

• At least 18 million homes—over half of all housing stock—need improvements to reach an EPC rating of C, which would cost over £196.7 billion, around £10,907 per household.
• 50% of properties valued over £1 million have significantly improved their rating since their last EPC, compared to only 32% of properties valued under £400,000.
• In the rental market, an estimated 2.9 million properties need to be improved to reach an EPC C rating, which will cost £23.4 billion—around £8,074 per property for a landlord.
• Half of landlords (50%) are concerned that the government will introduce costly charges for not meeting EPC requirements.

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