Navigating the Current Financial Landscape: Your Guide to Mortgages and Property

Embracing the Autumn Transition

If, like me, you are settling back into the school or nursery routine and feeling a bit more organised, congratulations on surviving the summer! I’m missing those sunny days in the garden, but I appreciate getting a bit cosier as autumn rolls in. While I am happiest when it’s warm and sunny, I do love the charm of autumn too.

The Bank of England's Base Rate Review

We are due for another Bank of England base rate review this week. It’s widely expected that they will hold interest rates steady. There’s even a slight whisper that they might increase rates, but I doubt it. Inflation remains a pressing issue. Prices continue to rise, as we can all see and feel. Many articles I’ve read suggest that the likelihood of another cut this year is fading.

The mortgage market has already adjusted to this changing landscape. I’ve noticed a very small increase in the product rates available. In June, we were seeing rates drop to around 3.7%, but now we are back to a norm of 3.8% to 4%. I don’t anticipate much movement in these rates over the next few weeks or months. However, we might see some competitive pricing towards the end of the year to stimulate business and boost figures as things quiet down.

Is It a Good Time to Buy or Sell?

This brings us to the perennial question: Is it a good time to buy or sell? The summer was surprisingly busy, but generally, the selling market is slow. When I speak to estate agents, they seem a bit gloomy, yet deals are still being made. Prices are increasing compared to last year, and the market is described as having ‘steady resilient demand’.

I’m still observing many complex chains, and unfortunately, some are collapsing. I believe the rest of the year will be characterised by slow and steady activity. However, if you need to move, it is possible. I’m noticing more people interested in borrowing to make improvements to their homes, rather than moving. As rates have come down a bit, this has become more affordable again.

The Importance of Reviewing Your Mortgages

My advice remains consistent: we are in uncertain times. The best course of action is to review your mortgages early. If your mortgage is due to end in the next six months, I recommend speaking to me now. I’ve learned to be cautious, so we should hold off on any major decisions for now, just in case rates increase rapidly. The global landscape is unpredictable, with figures like Trump and Musk making headlines.

Whatever we hold can be adjusted if things improve, but if they worsen, we’ll have secured the best rate possible for you. Knowing your numbers is crucial, especially if you’re moving off a cheaper fixed rate. This knowledge will help you prepare for any potential increase in payments.

The Buy-to-Let Market Overview

In terms of the buy-to-let market, it seems the situation has stabilised somewhat. Approximately 60% of landlords have no plans to sell any properties in the next 12 months. I believe those who intended to leave have already done so, and those remaining are enjoying high demand and rental prices. Interestingly, landlords buying in the North account for almost half of all new buy-to-let purchases.

Regional Yield Insights

When we look at two-bedroom homes, data from Savills Research reveals that the highest regional averages for gross yields are in the North East (7.8%), Scotland (7.2%), Yorkshire and the Humber (7.1%), and the West Midlands (6.9%). In contrast, traditional buy-to-let markets like London (5.1%) and the South East (5.8%) show lower potential returns.

If you delve deeper into this analysis, you’ll find that places like Paisley (8.8%), Middlesbrough (8.4%), Burnley (8.3%), and Doncaster (7.8%) offer the highest gross yields for two-bedroom homes in major urban areas. This data highlights the potential for investors who are willing to cast their nets a bit further afield.

Upcoming Changes: The Renters Rights Bill

The Renters Rights Bill, which is set to come into effect later this year, will bring significant changes to the rental landscape. I will keep you updated as more details are released. Currently, lenders have indicated that there won’t be any major changes in mortgage criteria based on this bill.

Let's Connect!

What are your thoughts on mortgages and property at the moment? I would love to hear from you! Understanding your opinions, questions, needs, and worries is important to me. If you have a moment, drop me a line and let me know. I always enjoy hearing from you.

Before the end of the year, I’ll reach out with predictions for 2026 and any other relevant news. If you want to discuss any aspect of mortgages, feel free to book a session with me here.

If you prefer not to be included in this list, please let me know. Also, if you have friends or family who would benefit from these updates, send me their email addresses, and I’ll add them! Remember, I can also assist you with wills, life insurance, equity release, lasting power of attorney, buildings and contents insurance, and much more!

Sarah Drakard DipFA DipMAP CeMAP CeRER MLIBF

Independent Financial Adviser - Residential/Buy To Let/Commercial Mortgage Broker - Equity Release Adviser - Insurance Broker - Will Writer

0330 33 22 615 | 07931 702 681 | sarah@cruzefs.co.uk

www.cruzefinancialsolutions.co.uk