Understanding the Current UK Mortgage Market

Wednesday 4 December, 2024

The Bank of England's recent decision to reduce the base rate to 4.75% in November 2024 has brought some relief to borrowers facing high borrowing costs.

The decision reflects the continued progress in reducing inflation, with consumer price inflation (CPI) now at 1.7% as of September 2024. However, this figure has risen slightly over the last few months and is currently standing at 2.3% (November 2024). While the base rate reduction offers hope for some easing of mortgage costs, it remains relatively high compared to historical lows.

Amy Kadir, Mortgage Broker in St Albans said:

“Despite the Bank of England's move, mortgage rates are expected to stay elevated for the foreseeable future as lenders adjust their products in response to economic conditions. The ongoing economic uncertainty means that while some lenders have begun to reduce rates, many products still carry higher borrowing costs than in previous years.”

Some analysts predict that further rate adjustments will depend on the trajectory of inflation and the overall economic recovery, making it essential for borrowers to stay informed.

How Mortgage Advisers Can Assist in the Current Mortgage Market

In such a competitive and complex market, the role of mortgage advisers is invaluable. At Lonsdale Mortgages we bring expert knowledge of the mortgage landscape, staying updated on the latest products, interest rates, and lending criteria.

Our team provide:

Specialist knowledge
Access to a wide range of products
Personalised advice
Simplifying the application process
Long-term planning
Negotiation power

This expertise enables us to deliver insights that are typically unavailable to individuals navigating high street mortgage options, helping you identify the most suitable solutions for your needs.

Our mortgage advisers also have access to a wide range of mortgage products not available directly to the public. This expanded access allows you to choose from a broader selection of options, ensuring that you find a mortgage tailored to their specific needs.

Beyond simply offering a variety of choices, our mortgage brokers provide personalised advice based on an in-depth understanding of your financial situation and long-term goals. This level of personalisation is crucial, whether you are a first-time buyer, looking for a buy-to-let mortgage, or considering remortgaging.

Simplifying the Mortgage Application Process

The mortgage application process can be daunting, but Lonsdale mortgage advisers simplify it by guiding you through each step, from completing the application to submitting necessary documentation. We also handle communications with lenders, reducing the stress on you and improving the chances of a successful application.

Moreover, our mortgage advisers help with long-term planning, ensuring that the chosen mortgage product remains appropriate as your financial circumstances evolve. We can also leverage our relationships with lenders to negotiate better terms or expedite processing times.

In Summary

The current UK mortgage market presents numerous challenges for borrowers, from navigating interest rate fluctuations to understanding the myriad of available products.

In this environment, we believe mortgage advisers play a crucial role in finding a mortgage that aligns with your financial circumstances. Their expertise, access to a range of options (including some not readily available elsewhere), tailored advice, and ability to guide you through the process can provide valuable support in securing a suitable mortgage.

Call our mortgage broking team in St Albans on 01727 845500 if you need personalised mortgage product advice for a new mortgage or a remortgage.

Please note: As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some types of buy to let mortgages.