The Property Podcast
TPP623: Mortgage Market Update
Feb 20, 2025
Interest rates are trending down, offering some hope to investors, but down-valuations remain a major hurdle. Experts share insights on managing client expectations, current mortgage rates, and revitalizing lender sentiment. Strategies are discussed to cope with emotional challenges brought about by valuations, alongside tips for maintaining a long-term perspective. There's also a deep dive into mortgage options for expatriates, highlighting potential rates and essential due diligence for successful investments.
35:31
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Quick takeaways
- The mortgage market shows cautious optimism as interest rates decrease, but property choice remains critical for securing suitable lender options.
- Investors must prepare for potential down valuations, as lender appraisals lower than expected can jeopardize real estate deals and require additional cash.
Deep dives
Current Mortgage Market Dynamics
The mortgage market is currently characterized by cautious optimism, with interest rates slightly decreasing after a recent cut. The economic climate remains challenging due to persistent sticky inflation and fluctuating long-term bond prices, which have kept buy-to-let rates relatively high. Despite forecasts of potentially two or three further interest rate cuts throughout the year, lenders have already adjusted their pricing based on these expectations. It is crucial for property buyers to understand that their choice of property directly influences their lender selection, as different lenders cater to varying property types.
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