Mortgage Market Update

June 2025 Mortgage Market Update - What do the inflation rises mean for interest rates?

🏡 June 2025 Mortgage Market Update – 📈 Market Momentum Builds as Summer Begins

Following the Bank of England’s base rate reduction to 4.25% in May, the mortgage market initially showed encouraging signs of recovery. Early in the month, swap rates remained relatively stable, prompting lenders such as Barclays, Halifax, and HSBC to reduce fixed mortgage rates by 0.10–0.15%, while Nationwide cut rates by as much as 0.22%. ✅

However, this trend shifted mid-May after the release of higher-than-expected inflation figures 📊, with UK inflation rising to 3.5%—the highest level since January 2024. This unexpected rise led to increased market uncertainty 😬, pushing swap rates up. The 2-year swap rate climbed to 3.789%, and the 5-year swap rate reached 3.804% (Source: Kerr & Watson).

As a result, many lenders—including HSBC, NatWest, Halifax, and Santander—have since reversed their earlier rate cuts and are now increasing fixed mortgage rates in response to the upward movement in swap rates. 📉➡️📈

🏘️ Housing Market Resilience Amid Policy Changes

Despite a dip in mortgage approvals in April due to the end of the stamp duty holiday 🧾, house prices rebounded in May, rising by 0.5% and bringing annual growth to 3.5%. This suggests the April decline was a temporary blip ⏳, with the market buoyed by falling mortgage rates and rising wages 💷 (Source: thetimes.co.uk).

💡 What This Means for Borrowers

If you're considering a mortgage:

⚠️ Act Promptly (Don’t Wait on Uncertainty):
Many clients are currently holding off on securing a rate, hoping that mortgage rates will fall. The good news is that once we secure a rate, we continue to monitor the market on your behalf 🔍—and if your chosen lender reduces their rates before completion, we’ll get in touch to see if switching could benefit you.
We’ve a great example in May of a client’s rate reducing and saving £6,550.80 over 5 years 💰—and they still completed in time for 2nd June! In today’s climate, delaying may prove more costly than acting decisively. 🚀
🧑‍💼 Work with a Mortgage Advisor:
Navigating today’s shifting mortgage market can be time-consuming and overwhelming—especially if you’re juggling a busy work/life schedule 🏃‍♂️📅.
We aim to take the headache out of the process, handling the research, rate tracking, and paperwork so you don’t have to. 📝 Our goal is to identify the best opportunities for you with minimal disruption to your day.

Sarah Grace Mortgages
Helping you move forward with confidence.

➡️ [See May 2025's post here]

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December Prize Draw Winner Announcement

By Jordan Nasser • December 16, 2025

🎉December Prize Draw Winner Announcement🎉 We’re delighted to announce the winner of our Google Review prize draw - congratulations to Dr Adam Richardson, who has won a brand-new pair of AirPods! 🎧 Thank you to everyone who took part and helped make our December draw such a success. We really appreciate the time you take to share your feedback and support us. Missed giving us a review? Don’t panic! If you didn’t get a chance to enter last time, there’s still plenty to play for. We’re running another competition, with the chance to win a pair of AirPods Pro 3. 📅 The next winner will be drawn on 30th April, so there’s still time to get involved. 👉 Click here to leave your review and enter the draw Good luck - and once again, congratulations to Dr Adam Richardson! 🙌

The Budget and Your Properties/Mortgage

By Jordan Nasser • December 14, 2025

Podcast with Dentists Who Invest – Featuring Sarah Grace | CPD Available In this episode, we discuss how the UK Government’s latest budget changes affect property owners and mortgage holders - especially dentists and small landlords. We explore how shifts in tax bands, interest tax credits, and mortgage pricing are influencing property investment strategies, rental returns, and borrowing decisions. We also share practical tips on approaching fixed-rate mortgage deals and preparing the right documentation, whether you’re remortgaging, buying a home, or considering buy-to-let. 📌 Key takeaways: 📉 Interest rates: Fixed rates (2 and 5-year deals) are easing as markets digest the budget, but uncertainty remains. 💸 Tax impact: Changes in tax bands and interest tax credits can pull more rental income into higher rates. 🔑 Strategy tip: If your current mortgage fix is ending soon, consider securing a product now to cap risk and switch later if prices fall. 🧠 Practical guidance: Covers what documents to gather and how to choose between mortgage terms. 📍 For higher-value homes: Be aware of proposed mansion tax bands and valuation timing ahead of 2028. ➡️ Great listen if you’re navigating property finance in the current UK market! 🎧 Listen now : The Budget And Your Properties/Mortgage 📝 CPD Certificate Available : This episode is eligible for verified CPD, making it a valuable use of your time both personally and professionally.