The Property Podcast Mortgage Market Update – May 2025
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May 22, 2025 In this insightful discussion, mortgage expert Kelly Rule from Serious Property Finance shares her expertise on the current mortgage market landscape, emphasizing the recent base rate cuts. She highlights how these changes are creating opportunities for both new and seasoned investors. Kelly explores the increased competition among lenders, the various mortgage products being favored, and successful investment strategies. Additionally, she debunks myths surrounding buy-to-let mortgages and offers advice on navigating this evolving financial terrain.
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Base Rate Cuts vs Mortgage Rates
- Fixed mortgage rates don't immediately drop after base rate cuts; lenders use swap rates largely influenced by inflation.
- Mortgage rates reflect long-term inflation expectations rather than just central bank decisions.
Look Beyond Just Mortgage Rates
- Don’t just look at mortgage rates; always consider the fee attached to the deal to understand total cost.
- A no-fee mortgage with a slightly higher rate can sometimes be cheaper long-term than a low-rate mortgage with high fees.
Lock-In Rates Can Improve Pre-Completion
- When mortgage rates drop during your application, ask your broker to update your locked-in rate if there’s enough time before completion.
- Don’t risk revising the offer if completion is within two weeks to avoid deal falling through.