Mortgage Market Update: Rates and Prices on the Rise
The UK mortgage market is experiencing a period of significant change, with rising interest rates and house prices making it increasingly difficult for first-time buyers to get onto the property ladder. According to analysis by property website Rightmove, the average first-time buyer mortgage payment has risen by 61% since the 2019 General Election, from £667 to £1,075 per month.
Rising house prices and mortgage rates making it tough for first-time buyers
This significant increase is largely due to rising mortgage rates, as well as house prices, which have jumped by nearly a fifth (19%) since 2019. Across Britain, first-time buyers now face paying £227,757 for a home, with London seeing the smallest percentage rise of just 6% over the past five years.
London house prices steady, but still out of reach for many
In response to these increases, some lenders are looking to offer more flexible mortgage options. Molo Finance, for example, has made further reductions across its UK resident buy-to-let fixed-rate products, with rates now starting from 4.55% for a 2-year fixed rate for both individual and limited companies up to 75% loan-to-value.
Molo Finance cuts rates to help landlords and investors
Quilter Financial Planning has also hired Victoria Jenson as regional director to help grow its mortgage network. In her role, Jenson will be responsible for recruiting and onboarding mortgage and protection advisers for Quilter’s mortgage network.
Quilter Financial Planning expands mortgage network with new appointment
As the mortgage market continues to evolve, it’s clear that first-time buyers are facing significant challenges in getting onto the property ladder. With rising mortgage rates and house prices, it’s never been more important for buyers to do their research and seek out the best mortgage deals available.
Seeking expert mortgage advice can help first-time buyers navigate the market
In the coming months, it will be interesting to see how the mortgage market adapts to these changes, and what new opportunities and challenges arise for buyers, sellers, and lenders alike.
