Pre-Spring Buyer Surge

Mortgage rates are falling, confidence is soaring, and the market is buzzing – creating opportunities for movers and investors in 2025!

Although spring's first blooms are still weeks away, the UK mortgage and property markets are already thriving, partly thanks to the Bank of England's recent base rate cut. The February 6th reduction from 4.75% to 4.5% may not be breaking news. Still, its effects are cascading through the market, boosting confidence among buyers, sellers, investors, estate agents, and mortgage brokers and driving a surge in activity.

To understand how this shift is reshaping the mortgage landscape, we spoke with one of our leading Mortgage Advisers, James King. The key question: Has this rate cut truly sparked a positive change? The answer is a resounding yes.

A Market Strengthened: Expert Insights from James King

"The base rate cut has further fuelled confidence in an already strong market," James explains. "Lenders are increasingly optimistic, and buyer demand continues to grow. We're now seeing a highly competitive 'rate war,' with lenders like Santander offering sub-4% rates – accelerating activity across the board."

Climbing the Ladder: Opportunities for Buyers in 2025

This renewed energy in the mortgage market creates opportunities for buyers at every stage of the property ladder.

First-Time Buyers (FTBs): A Door Opens Wider

With stamp duty exemptions ending on March 31st, many first-time buyers may feel disheartened – they’ve been saving for years, only to now face an extra tax levy. However, there's good news: the additional stamp duty can be incorporated into the mortgage, spreading the cost over the loan term. For example, on a typical £250,000 property, an extra £2,500 in stamp duty would add just a few pounds to a monthly repayment – far less than most expect.

Other factors working in your favour include:

The government's mortgage guarantee scheme continues, ensuring long-term support for low-deposit buyers.
Lenders are increasingly factoring in joint incomes, allowing couples and partners to secure larger mortgages.
Many parents are stepping in to help with deposits, recognizing that property investment offers better returns than savings accounts.
Higher salary multiples (up to 6x for some) are expanding affordability, making homeownership within reach for more buyers.

Despite the end of stamp duty relief, first-time buyers remain a driving force in the market, and this is unlikely to change, as homeownership remains a key aspiration for many. Last year, 400,000 FTBs successfully stepped onto the ladder, and 2025 is set to surpass that figure. The market is wide open with competitive mortgage rates, government support, and flexible lending. Speak to one of our independent mortgage advisers, who will help create a saving plan and bring the purchase of your first home closer to reality.

Moving Up: The 30% Deposit Advantage

Buyers with a substantial 30% deposit benefit from highly competitive rates and flexible lending criteria.
"Lenders are rewarding larger deposits with the best rates available," James confirms. "This trend is set to continue, making it a great time to move up the ladder."

Buy-to-Let (BTL) Investors: A Resurgence

The BTL market is bouncing back, with lenders like Nottingham Building Society introducing 80% Loan-to-Value (LTV) products with flexible terms.
"The BTL market is showing strong signs of recovery," James observes. "With savings rates stagnant, property investment is regaining its appeal."

2025 Outlook: Optimism with a Note of Caution

The UK mortgage market is poised for significant growth this year, with lending expected to more than double, driven by declining interest rates and renewed buyer confidence.

"We anticipate strong growth in the mortgage market," James predicts. "However, challenges like economic uncertainties and global political and security concerns remain. While we’re on a path to recovery, fluctuations are still possible."

Sales Surge: The Ripple Effect on the Housing Market

This mortgage market momentum is fuelling a busy start to the year for The Robinson Jackson Group. Sales are up 8.8% in the first two months of 2025, a notable increase compared to last year's period, reflecting sustained demand and growing buyer confidence.

"We haven't seen buyer levels this high in three years," says Jack Glyde, Owner Partner of our Eltham operation. "Thousands of new applicants are registering, and viewing volumes have jumped 10.7% compared to last year, driven by a combination of renewed buyer confidence and increased market activity following the base rate cut. The market is buzzing!"

James King's Summary:

"The base rate cut continues the reinvigoration of the mortgage market. We're seeing increased lender activity, improved affordability, and a resurgence in investor interest. While challenges remain, 2025 presents real opportunities for buyers. If you're considering a move, now is the time to explore your options."

Your Next Step: Take Action

As spring approaches, momentum in the property market continues to build. There is a wide choice of property types to suit all budgets, and while demand is in a growth phase, it is not driving drastic price inflation. As a result, buyers are getting more for their money. Whether you’re a first-time buyer, moving up the ladder, or an investor, our team is here to help.

Contact your local network office today to secure the best mortgage rates and take your next step with confidence.

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