Mortgage Views from Cruze
- Cruze Finance
- Jun 3
- 4 min read
Firstly, I must apologise. I haven't been very consistent with these updates and, honestly, a lot has happened!
Before I get into the market update, I have a small favour to ask.
A client recently referred someone to me who later said they were put off because I didn't have many Google reviews. It was actually really useful feedback because asking for reviews is something I never really think to do.
So, if we've worked together and you have a spare minute, I'd genuinely appreciate a quick Google review. It really does make a difference for a small business like mine.
Review here:https://share.google/DYh4bnaBXklIbpgAn
When I last wrote in September, I was feeling really optimistic about 2026. It genuinely looked like things were finally moving in the right direction. Rates had crept down into the mid-3% range, enquiries from first-time buyers were picking up, and I was even seeing buy-to-let purchases again, which I hadn't seen for a very long time.
Then the political landscape changed. Again.
As many of you will know, rates climbed back up and the market slowed almost immediately. I'm actually sighing as I write this because it's incredibly frustrating.
So where are we now?
The Bank of England base rate currently sits at 3.75%. At the moment, it looks increasingly unlikely that we'll see any further cuts this year and there is even the possibility of a rise if inflation remains stubbornly high.
Whenever confidence takes a knock, property valuations tend to follow. I'm seeing some surprisingly low valuations coming through at the moment. The sales market simply isn't where it needs to be.
The flat market, as I've mentioned many times before, is particularly challenging. I'm regularly seeing flats being down-valued by 20-30%, especially newer builds, which is quite astonishing.
The home mover market isn't quite as bad. I think people have adjusted to the reality of higher interest rates. Life doesn't stop because mortgages become more expensive. People still get divorced, outgrow their homes, relocate for work, have children, or face other life changes that mean moving simply can't wait.
Current rates are approximately:
• 2-year fixed remortgage at 50% LTV – 4.83% with no fees• 5-year fixed remortgage at 50% LTV – 4.85% with no fees• 2-year fixed purchase at 90% LTV – 5.24% with no fees• 5-year fixed purchase at 90% LTV – 4.94% with no fees
What's particularly interesting is that mortgage rates have drifted back into the 5% range without any increase in the base rate itself. It'll be interesting to see whether lenders have already priced in future expectations or how they react if the base rate changes again.
Personally, I don't think the mortgage market can tolerate much more upward movement.
That said, there are a few positive signs. Several lenders have reduced rates slightly this week and any progress towards peace in the Middle East could improve wider economic confidence and hopefully make my current outlook a little less pessimistic.
We're also seeing some genuinely innovative products emerge for first-time buyers, including lower deposit requirements and more generous affordability calculations. If property prices continue to soften while lenders become more creative, there could be some excellent opportunities later this year for first-time buyers to secure both a good purchase price and a competitive mortgage deal.
So, if I had to summarise my thoughts, they would be:
It's a difficult time to sell unless you genuinely need to.
Rates feel relatively stable. There may be some small reductions, but I wouldn't be expecting a dramatic drop anytime soon.
If the last few years have taught us anything, it's to expect the unexpected. If you're thinking about a mortgage, speak to me as early as possible. We can secure a rate now and, if things improve, switch to a better deal before completion. If rates increase, you're protected. Waiting rarely pays off.
On a personal note, I'll do my best to keep these updates more regular.
Cruz is now a very busy three-and-a-half-year-old and is currently covered from head to toe in chickenpox! Ceven is 15 months old and right on the verge of walking and talking. It's been a hectic period balancing family life while trying to grow a business in what remains a very challenging economy.
If you know anyone who could benefit from my help, I'd be incredibly grateful for an introduction. As a small thank you, if they go ahead, I'll send you a £20 Amazon voucher. Every little helps in the current climate.
As a reminder, I can help with:
• Wills• Lasting Powers of Attorney• Life & Critical Illness Insurance• Residential Mortgages• Buy-to-Let Mortgages• Specialist Mortgages• Bridging Finance• Development Finance• Commercial Mortgages• Equity Release / Lifetime Mortgages
And a few other things besides.
Also, a quick reminder that I'm still running my campaign to help 100 people get a professionally written simple will for just £100. I've helped loads of people so far, but I haven't quite reached the 100 mark yet. There are only a handful of spaces remaining, so if you've been meaning to get your will sorted, now is a great time to do it.
As always, if you have any questions, need any advice, or simply want to sense-check an idea, please don't hesitate to get in touch.
I hope you're all well and enjoying the warmer weather.
Sarah
I’m here to help so be ahead of the game and get in contact with me to check all your facts and figures early so you’re prepared for any mortgage payment changes.Feel free to forward on to others. If you want to discuss any aspect book in with me here https://calendly.com/sarahcruze/30min
If you don’t want to be included in this list please do let me know and equally if you have friends or family who would benefit from the updates send me their email address and I will add them!
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 |
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