Heading into March, we're seeing positive changes in the mortgage world. Interest rates are falling, lenders are coming out with competitive deals, and first-time buyers have some exciting new opportunities.
Competition for Lower Mortgage Rates Increases
Mortgage rates are heading in the right direction for home buyers and owners. Santander has led the way with sub-4% rates for clients with a 60% LTV or lower, and we’ve also seen multiple other banks reduce their rates.
This shift comes as swap rates have dropped, making it cheaper for banks to lend. The key takeaway? Rates are coming down, and we’re seeing deals we haven’t had for a while.
If you’re remortgaging or buying, this could mean securing a better rate than expected. Our usual advice? Lock in a competitive rate now for security — but if something better pops up, we can always switch.
Bank of England Cuts Base Rate to 4.5%
The Bank of England has reduced the base rate to 4.50%, with seven out of nine committee members voting for the cut. The other two wanted a bigger drop to 4.25%.
This isn’t the first cut we’ve seen recently — the BOE has now reduced rates three times in the last six months as inflation continues to ease. While this is a positive step, inflation is expected to tick up slightly to 3.7% later this year before settling back down.
The next BOE meeting is on Thursday, 20th March — one for the diary! We’ll keep you updated on what happens next.
More Support for First-Time Buyers – £5K Deposit Now Available for Flats
Big news for first-time buyers in London — Accord has expanded its £5,000 deposit scheme to include flats up to £500K (previously, it was only available for houses). This means buyers can now borrow up to 99% of the property value, making homeownership much more accessible.
There are some restrictions — it can’t be used on new-build flats, but for many buyers struggling with deposits, this is a huge step in the right direction.
Accord isn’t the only lender making moves to help first-time buyers over the last 12 months. We’re also seeing schemes like Nationwide’s 6x income borrowing option and Skipton’s Track Record Mortgage, all positive changes that will hopefully help more first-time buyers get on the housing ladder.
Risk warnings
Your home may be repossessed if you do not keep up repayments on your mortgage