Mortgage market update | June 2025

June brings a mix of innovation and caution in the mortgage world. Lenders are introducing creative solutions for first-time buyers, while some are adjusting rates in response to economic shifts. Here’s what you need to know this month:

Skipton’s Delayed Start Mortgage: Fresh Thinking for First-Time Buyers

Skipton has launched a new “Delayed Start” mortgage, allowing first-time buyers to delay their first three mortgage payments. While interest does accrue, this approach gives more breathing space during the move-in phase, something we think is a smart and supportive move!

Halifax Improves Bonus Income Assessment for Job Movers

For clients who’ve recently changed jobs, there’s a positive update from Halifax. They will now consider bonuses from previous employers when calculating the two-year average, provided the most recent bonus is from the current employer. This could significantly boost borrowing capacity for buyers who have moved roles but still earn bonuses.

Rising Mortgage Rates: A Sign to Act

We’re seeing some lenders, including Halifax and Barclays, start to increase their fixed-rate mortgage offers. This is because it’s becoming more expensive for them to fund these deals, with higher inflation expectations and swap rate movements driving up costs. It’s a timely reminder: if you’re thinking of buying or re-mortgaging, now might be the moment to secure a good deal before rates move up further.

FCA Proposes Easier Lending Rules for Borrowers

The Financial Conduct Authority (FCA) has announced proposals to simplify mortgage lending rules, making it easier and more cost-effective for borrowers to switch lenders or adjust their mortgage terms. Highlights include:

• No need for full affordability checks when remortgaging at a lower rate.

• Simpler term reductions.

• Borrowers can discuss options with lenders without needing formal advice (unless they want it).

  
  

The consultation is open until today (June 4th), and more updates are expected soon.

Risk warnings

Your home may be repossessed if you do not keep up repayments on your mortgage