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Cloud Mortgages Joins Stonebridge Network: Impact on UK Mortgage Market in 2026
In this article:
Cloud Mortgages, a growing firm in the UK mortgage market, has joined the Stonebridge network, aiming to expand its team of advisers from six to ten by year-end. This move, announced on May 5, 2026, is expected to impact mortgage seekers, with potential benefits for both first-time buyers and remortgagers.

Impact on First-Time Buyers

Cloud Mortgages’ integration into the Stonebridge network could potentially offer more competitive rates to first-time buyers. Let’s consider a scenario where a first-time buyer is looking to purchase a property valued at £300,000 with a 90% loan-to-value (LTV) ratio. Assuming a fixed rate of 3.75%, the monthly repayment would be £1,393. However, with the increased competition and potential rate cuts, this could reduce to £1,350, saving the buyer £43 per month or £516 annually.

Scenario for Buyers at 80% LTV

For a first-time buyer purchasing a property at £400,000 with an 80% LTV, the monthly repayment at the current base rate of 3.75% would be £1,859. A potential rate cut to 3.5% would reduce the monthly payment to £1,798, resulting in an annual saving of £732.

Implications for Remortgagers

Remortgagers could also benefit from this development. For instance, a homeowner with a £250,000 mortgage at a 75% LTV, currently repaying at the base rate of 3.75%, would have monthly payments of £1,159. If Cloud Mortgages, through its association with Stonebridge, can offer a more competitive rate of 3.5%, this would reduce the monthly payment to £1,123, leading to an annual saving of £432.

Scenario for Landlords on Interest-Only Mortgages

A landlord with a £200,000 interest-only buy-to-let mortgage at the current base rate of 3.75% would have a monthly cost of £625. A potential reduction in the rate to 3.5% would lower the monthly cost to £583, providing an annual saving of £504.

Market Context

The UK base rate, as of April 2026, stands at 3.75%, a significant increase from 3.25% six months ago and 2.75% a year ago. This move by Cloud Mortgages comes at a time when the mortgage market is experiencing increased competition, which could potentially drive down rates, despite the rising base rate. The addition of Cloud Mortgages to the Stonebridge network, following the addition of Right Choice Mortgages in March, signifies Stonebridge’s expansion strategy and its potential impact on the current mortgage rates.

Frequently Asked Questions

What is the significance of Cloud Mortgages joining the Stonebridge network?

The move signifies an expansion strategy from Stonebridge, potentially leading to more competitive mortgage rates for borrowers. It also indicates growth for Cloud Mortgages, which plans to increase its team of advisers from six to ten by the end of 2026.

How could this affect first-time buyers?

First-time buyers could potentially benefit from more competitive rates. For instance, on a £300,000 mortgage at a 90% LTV, a rate reduction could save a buyer up to £516 annually.

What does this mean for remortgagers?

Remortgagers could also see benefits. On a £250,000 mortgage at a 75% LTV, a rate reduction from 3.75% to 3.5% could lead to an annual saving of £432.

What is the current UK base rate?

As of April 2026, the UK base rate is 3.75%, up from 3.25% six months ago, according to the Bank of England base rate.
May 6, 2026
Buy-to-Let and Second Homes Drive Stamp Duty Receipts in 2026
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As of May 2026, second home and buy-to-let transactions now account for the majority of stamp duty receipts in over half of English local authorities, according to an analysis by Paragon of government data. This is a significant increase from 2016/17, with a 164% rise in local authorities where these transactions account for at least half of total stamp duty receipts.

Impact on Buy-to-Let and Second Home Owners

Stamp Duty Surcharge

The 3% stamp duty surcharge was introduced in April 2016 to moderate buy-to-let and second-home demand. It was further increased to 5% in the 2024 autumn Budget. For instance, a landlord purchasing a second property worth £200,000 now pays £10,000 in stamp duty, up from £6,000 in 2016.

Regional Shifts

The policy has led to a pivot in transactions to northern regions, where property is typically cheaper. For example, in Kingston upon Hull and Sandwell in the West Midlands, HRAD transactions accounted for 97% and 92% of total stamp duty receipts respectively. Even in large urban authorities like Manchester, Salford, and Wolverhampton, three-quarters or more of their stamp duty receipts now come from additional-property purchases.

Implications for First-Time Buyers

Increased Competition

With the increase in buy-to-let purchases, first-time buyers may face more competition. For example, a first-time buyer looking at a £250,000 property in Manchester may now be competing with buy-to-let investors, potentially driving up prices.

Higher Stamp Duty Receipts

Despite the increased competition, the higher stamp duty receipts could lead to more funding for local services. In areas like Yorkshire and North East, where 93% and 92% of local authorities respectively derive the majority of their stamp duty receipts from higher-rate transactions, this could lead to significant local investment.

Frequently Asked Questions

How much is the stamp duty surcharge for second homes and buy-to-let properties?

As of the 2024 autumn Budget, the stamp duty surcharge for second homes and buy-to-let properties is 5%.

Which areas have the highest proportion of stamp duty receipts from buy-to-let and second home purchases?

Areas such as Kingston upon Hull and Sandwell in the West Midlands have the highest proportion, with 97% and 92% of total stamp duty receipts respectively coming from these transactions.

How has the stamp duty surcharge affected first-time buyers?

First-time buyers may face increased competition from buy-to-let investors, potentially driving up property prices. However, the higher stamp duty receipts could also lead to more funding for local services.

What is the trend in buy-to-let and second home purchases?

There has been a shift towards these transactions in northern regions, where property is typically cheaper. Areas like Manchester, Salford, and Wolverhampton now derive three-quarters or more of their stamp duty receipts from additional-property purchases.
May 6, 2026
UK Mortgage Affordability at its Toughest since 2008: What it Means for Borrowers
In this article:
As of May 2026, mortgage affordability in the UK is at its toughest since 2008, according to UK Finance. This is particularly evident in East Anglia, where borrowers in North Norfolk are spending 25.7% of their income on bills. The London commuter belt makes up the rest of the top 10 least affordable areas, with Londoners having the highest average mortgage debt of £280,000.

Impact on First-Time Buyers, Remortgagers, and Landlords

First-Time Buyers

For first-time buyers, the affordability squeeze can be daunting. For example, a first-time buyer in London with a £280,000 mortgage at a 90% loan-to-value (LTV) ratio, given the current mortgage rates, will have a monthly repayment of approximately £1,340. This represents a significant portion of their income, especially in comparison to a borrower in Northern Ireland, where the average mortgage debt is significantly lower at £99,500.

Remortgagers

For remortgagers, the impact is also significant. A remortgager in Hillingdon, Greater London, with a £250,000 mortgage at a 75% LTV, will see their monthly payments rise from £1,432 to £1,489 — an increase of £57 per month or £684 per year. This increase in monthly payments can place a significant strain on household budgets. In contrast, a remortgager in Northern Ireland with a £99,500 mortgage at a 75% LTV will see their monthly payments rise from £476 to £502, an increase of £26 per month or £312 per year.

Landlords

Landlords are also affected by these changes. A landlord in Scotland with a £200,000 interest-only BTL mortgage can expect a yield of 9%, translating to an annual income of £18,000. However, landlords in South Hams, Devon, will see the lowest yields at 5%, followed by Kensington and Chelsea at 5.1%. This means that a landlord in South Hams with a £200,000 interest-only BTL mortgage can expect a yield of 5%, translating to an annual income of £10,000.

Market Context

These affordability pressures are a stark contrast to the situation 12 months ago, when the UK base rate was at 3.25%. The increase to the current rate of 3.75% has contributed to the rise in mortgage repayments. Additionally, all regions of the UK saw an increase in buy to let (BTL) in 2025, with the highest BTL yields of more than 9% found in Scotland. The total number of purchase mortgages advanced in 2025 was 723,000, up 17% year-on-year. London and Northern Ireland had the highest percentage of borrowers on variable rate mortgages, at 16% and 18% respectively.

What This Means for Landlords in 2026

For landlords, the increase in BTL yields in Scotland is a positive development. However, the lower yields in South Hams, Devon, and Kensington and Chelsea may make these areas less attractive for investment. Furthermore, the increase in the number of borrowers on variable rate mortgages in London and Northern Ireland could lead to increased financial risk for landlords in these areas.

Frequently Asked Questions

What is the average mortgage debt in London?

The average mortgage debt in London is £280,000, the highest in the UK.

Where are the most affordable areas in the UK?

Seven out of 10 of the most affordable areas are in Scotland, with borrowers in East Ayrshire and Inverclyde spending only 17% of their income on mortgage repayments.

What is the current UK base rate?

The current Bank of England base rate is 3.75% as of April 2026.

Where are the highest buy to let yields?

The highest buy to let yields are in Scotland, with yields of more than 9%.
May 6, 2026
UK Homeowners Allocated a Fifth of Income to Mortgages in 2025
In this article:
As of May 2026, UK homeowners spent around a fifth of their income on mortgage payments in 2025, according to UK Finance. This is the highest level since 2008, with homebuyers spending on average 21.3% of their gross income. This article will delve into what this means for homeowners and potential buyers, with worked examples and a look at the broader market context.

Regional Differences in Mortgage Affordability

UK Finance’s Lending Where We Live report revealed significant regional differences in mortgage affordability. North Norfolk in East Anglia and the London Borough of Hillingdon saw borrowers spending over a quarter of their gross income on mortgage repayments, at 25.7% and 25.1% respectively. Other areas in the London commuter belt, such as Luton (24.9%), Slough (24.8%) and Spelthorne (24.8%), also ranked among the top 10 least affordable places. Conversely, seven of the 10 most affordable local authorities were in Scotland, including East Ayrshire and Inverclyde.

Worked Examples for Homeowners and Potential Buyers

First-Time Buyer

Consider a first-time buyer in London, where the typical borrower has £280,000 of mortgage debt. With a 75% loan-to-value (LTV) ratio, this equates to a property value of approximately £373,333. At the current mortgage rates of 3.75%, their monthly repayment would be around £1,297. This would represent approximately 21.3% of a gross income of £73,000 – the median income in London as of 2025.

Remortgager

For a homeowner in Northern Ireland looking to remortgage, the average mortgage debt is significantly lower at £99,500. Assuming a 75% LTV on a property worth £133,000, and using the current mortgage rate of 3.75%, the monthly repayment would be around £461. This equates to about 18% of a gross income of £30,500 – the median income in Northern Ireland as of 2025.

Market Context

UK Finance found that there were 723,000 UK house purchase mortgages advanced in 2025, a 17% increase year-on-year. This growth occurred despite challenges such as stamp duty surcharges, the progressive removal of income tax relief for mortgage interest, and stricter underwriting standards. All regions of the UK saw growth in buy-to-let purchase activity in 2025, though returns varied widely. Scotland had the highest rental yields, with a gross yield of over 9%, while the lowest returns were scattered across England.

Frequently Asked Questions

What percentage of income did UK homeowners spend on mortgages in 2025?

On average, UK homeowners spent 21.3% of their gross income on mortgage payments in 2025.

Which areas had the highest and lowest mortgage affordability in 2025?

North Norfolk in East Anglia and the London Borough of Hillingdon had the lowest mortgage affordability, with homeowners spending over a quarter of their income on repayments. The most affordable areas were in Scotland, including East Ayrshire and Inverclyde.

How has the number of UK house purchase mortgages changed year-on-year?

There were 723,000 UK house purchase mortgages advanced in 2025, representing a 17% increase from the previous year.

What were the rental yields in Scotland and England in 2025?

Scotland had the highest rental yields in 2025, with a gross yield of over 9%. The lowest returns were found in England, with areas such as South Hams in Devon yielding 5%.
May 6, 2026
UK Mortgage Borrowing Rises to £6.2bn in March 2026: What it Means for Borrowers
In this article:
As of May 2026, UK mortgage borrowing has seen a significant increase, rising 19% to £6.2 billion in March, up from £5.2 billion in February, according to the latest money and credit statistics from the Bank of England. This article will break down what these figures mean for first-time buyers, remortgagers, and landlords.

Impact on First-Time Buyers

Increased Mortgage Approvals

Net mortgage approvals for house purchases rose to 63,500 in March, from 62,700 in February. This is above the six-month average of 63,200, indicating a higher likelihood of mortgage approval for first-time buyers.

Lower Interest Rates and Monthly Payments

The ‘effective’ interest rate on newly drawn mortgages decreased to 4.03% in March, from 4.10% in February. For a first-time buyer with a £250,000 repayment mortgage at 90% LTV, this rate cut reduces monthly payments from £1,207 to £1,179 — a saving of £28 per month or £336 per year.

Impact on Remortgagers

Increased Approvals for Remortgaging

Approvals for remortgaging (which only capture remortgaging with a different lender) also increased, to 51,300 in March from 41,200 in February. This indicates a favourable environment for those considering a remortgage.

Decreased Interest Rates and Monthly Payments

The rate on the outstanding stock of mortgages decreased to 3.93% in March, down from 3.95% in February. A homeowner with a £200,000 repayment mortgage at 75% LTV would see their monthly cost drop from £948 to £937.

Impact on Landlords

Decreased Interest Rates and Monthly Payments

The rate on the outstanding stock of mortgages decreased to 3.93% in March, down from 3.95% in February. A landlord with a £200,000 interest-only BTL mortgage would see their monthly cost drop from £650 to £643.

Market Context

The current increase in borrowing is above the previous six-month average of £4.9 billion and significantly higher than the £3.4 billion recorded in March 2025. The current base rate is 3.75%, up from 3.5% a year ago. The annual growth rate for net mortgage lending, however, decreased to 3% in March, from 3.4% in February, indicating a slowing pace in the growth of mortgage lending.

Frequently Asked Questions

What does the increase in mortgage borrowing mean?

The increase in mortgage borrowing indicates a more active housing market, with more people taking out mortgages. This is often associated with increased house buying and selling activity.

How does the decrease in interest rates affect my mortgage payments?

A decrease in interest rates means lower mortgage payments. For example, a 0.07% decrease in interest rates would reduce monthly payments on a £250,000 mortgage from £1,207 to £1,179, saving £28 per month.

What does the increase in remortgage approvals mean?

An increase in remortgage approvals indicates that more people are successfully switching to a new mortgage deal, often to take advantage of lower interest rates or better terms. In March, remortgage approvals increased to 51,300 from 41,200 in February.

How does the current base rate affect my mortgage?

The current base rate of 3.75% affects the interest rates offered by lenders. A higher base rate generally means higher interest rates, which can increase mortgage payments. However, the ‘effective’ interest rate on new mortgages actually decreased to 4.03% in March.
May 6, 2026
UK House Price Growth Rises to 3% in April 2026: What Does This Mean for Mortgages?
In this article:
UK house price growth has risen to 3.0% in April 2026, up from 2.2% in March, with house prices increasing by 0.4% month on month. This data from the Nationwide House Price Index indicates a steady increase in property values, potentially impacting mortgage repayments for homeowners and investors.

Impact on Mortgage Repayments

First-Time Buyer Scenario

For a first-time buyer with a £250,000 repayment mortgage at 90% LTV, the increase in house prices could affect their monthly payments. Assuming a fixed rate of 3.75%, their monthly payments would be approximately £1,163. With the 0.4% increase in house prices, the value of their property would increase by £1,000, potentially affecting their LTV ratio and future mortgage deals. For context, this is a significant change from 12 months ago when house prices were relatively stable.

Remortgager Scenario

A homeowner looking to remortgage a property worth £300,000 at 75% LTV could also be impacted. With the current base rate of 3.75%, their monthly repayments would be around £1,389. However, with the 0.4% increase in house prices, their property would now be worth £1,200 more, potentially affecting their LTV ratio and remortgage options. This is an important consideration, especially in comparison to a year ago when house price growth was less pronounced.

Landlord Scenario

A landlord with a £200,000 interest-only BTL mortgage would see their monthly cost affected by the house price growth. Assuming a 3.75% interest rate, their monthly payments would be around £625. With the 0.4% house price growth, the property value would increase by £800. This could potentially affect the rental yield and capital appreciation, which are key considerations for landlords. This is a noticeable shift from 12 months ago when house price growth was slower.

Market Context

The current house price growth of 3.0% in April is a significant increase from the 2.2% growth seen in March 2026. The UK base rate remains at 3.75%, unchanged from six months ago. However, GfK’s headline index has fallen to its lowest level since late‑2023, suggesting a more pessimistic economic outlook among households. The Royal Institution of Chartered Surveyors also reported a sharp fall in new buyer enquiries in March, indicating a potential cooling of the market. This is a stark contrast to the same period last year when the market was more buoyant.

Frequently Asked Questions

How does house price growth affect my mortgage payments?

House price growth can affect your mortgage payments if you’re looking to remortgage. If your property value increases, it could potentially lower your loan-to-value (LTV) ratio, which could give you access to better mortgage deals.

What is the current base rate and how does it affect me?

The current Bank of England base rate is 3.75%. This rate influences the interest rates offered by lenders, which in turn affects the cost of your mortgage repayments.

What does a fall in new buyer enquiries mean?

A fall in new buyer enquiries, as reported by the Royal Institution of Chartered Surveyors, suggests fewer people are looking to buy properties. This could potentially lead to a slowdown in house price growth.

How does the average house price compare to previous years?

According to the Nationwide House Price Index, the average UK home is now worth almost £1,700 more than it was a month ago. This is a significant increase compared to the same period last year.
May 6, 2026
Mortgage Affordability in UK: A Detailed Analysis for 2026
In this article:
UK homebuyers are currently spending an average of 21.2% of their gross income on mortgage payments, the highest level since 2008. However, in certain areas, affordability is even tighter, with North Norfolk and the London Borough of Hillingdon leading the pack at 25.7% and 25.1% respectively.

Understanding the Numbers

Scenario 1: First-Time Buyer

Consider a first-time buyer in North Norfolk, planning to buy a property worth £250,000 at 90% LTV. With the current base rate of 3.75%, their monthly payment would be approximately £1,158. If they were earning the UK median gross monthly income of £2,208, this would mean they are spending 52.4% of their income on mortgage repayments. This is significantly higher than the national average of 21.2% and illustrates the affordability challenge for first-time buyers in high-cost areas.

Scenario 2: Remortgager

Now, let’s consider a remortgager in the London Borough of Hillingdon, with a £300,000 mortgage at 80% LTV. Their monthly payment would be approximately £1,390. If they were earning the London median gross monthly income of £2,639, this would mean they are spending 52.7% of their income on mortgage repayments. This scenario highlights the impact of the current base rate on remortgagers, particularly in areas with high property values.

Scenario 3: Landlord on Interest-Only

Finally, let’s look at a landlord with a £200,000 interest-only BTL mortgage. Their monthly cost would be approximately £625. This demonstrates that, despite the high base rate, landlords with interest-only mortgages may still find their payments manageable, particularly if they have a good rental yield.

Market Context

Compared to a year ago, when the base rate was 3.25%, the current rate of 3.75% has significantly impacted mortgage affordability. This increase in the Bank of England base rate has led to higher mortgage payments for homeowners, particularly in areas like North Norfolk and Hillingdon. It’s important to note that these figures are averages and individual circumstances will vary. However, they provide a useful snapshot of the current state of mortgage affordability in the UK.

Regional Differences

While the national average for mortgage affordability sits at 21.2%, there are stark regional differences. For instance, homeowners in South Hams, Devon, spend just 5% of their income on mortgage payments, while those in Cambridge, East Anglia, and the Derbyshire Dales spend slightly more at 5.3%. These figures highlight the disparity in mortgage affordability across different regions in the UK.

Frequently Asked Questions

What is the UK location with the highest mortgage affordability?

North Norfolk in East Anglia has the highest mortgage affordability, with homeowners typically paying 25.7% of their income on their mortgage.

What is the current UK base rate?

The current UK base rate, as of April 2026, is 3.75%.

What is the average percentage of income spent on mortgage payments in the UK?

Across the UK, homebuyers spend on average just over a fifth – 21.2% – of their gross income on mortgage payments.

Which areas have the lowest mortgage affordability?

The areas with the lowest mortgage affordability are scattered across England, including South Hams in Devon (5%), Cambridge in East Anglia (5.3%), the Derbyshire Dales (5.3%) and Rutland (5.4%).
May 6, 2026
Leeds BS and Coventry Slash Mortgage Rates: Impact on UK Borrowers in 2026
In this article:
As of May 2026, Leeds Building Society and Coventry for Intermediaries have reduced their mortgage rates by up to 0.35%. This significant decrease, which includes high loan-to-value deals with no fees, will have a tangible impact on both new and existing borrowers. Meanwhile, Monmouthshire Building Society has implemented the Phoebus platform to enhance mortgage account servicing.

Impact of Reduced Mortgage Rates

Scenario: First-Time Buyer at 90% LTV

A first-time buyer taking out a £200,000 repayment mortgage at 90% LTV from Leeds BS will see their monthly payments decrease from £1,201 to £1,163 due to the rate cut. This results in a saving of £38 per month, or £456 annually.

Scenario: Existing Borrower Remortgaging at 75% LTV

An existing borrower with Coventry, remortgaging a £250,000 property at 75% LTV, will see their monthly payments drop from £1,432 to £1,389. This equates to a £43 monthly saving, or £516 over the course of a year.

Scenario: Landlord with Interest-Only Mortgage

A landlord with a £200,000 interest-only buy-to-let mortgage with Coventry will see their monthly cost drop from £625 to £583. This equates to a saving of £42 per month or £504 per year, improving the rental yield.

Market Context

The recent reductions in mortgage rates come amidst a period of fluctuating interest rates. The current Bank of England base rate stands at 3.75%, having risen from 3.5% six months ago and 3.25% a year ago. Despite the rising base rate, major lenders including Barclays, HSBC, Lloyds Bank, NatWest, and Santander have recently cut some fixed rates. However, the overall outlook remains unclear, with the potential for further changes in the current mortgage rates.

Monmouthshire BS and Phoebus

Monmouthshire Building Society’s move to implement the Phoebus platform is expected to improve efficiency through automation. The platform will support a full range of products, including residential and buy-to-let, and will onboard new loans. The society plans to migrate existing mortgage and savings accounts onto the system in a later phase. This is a significant step in the digital transformation of the mortgage industry, which aims to enhance the customer experience and streamline operations.

Frequently Asked Questions

How much can I save with the new Leeds BS and Coventry mortgage rates?

For a £200,000 mortgage at 90% LTV, the rate cut could reduce your monthly payments by £38, saving you £456 per year. For a £250,000 mortgage at 75% LTV, you could save £43 per month, or £516 annually. A landlord with a £200,000 interest-only mortgage could save £42 per month, or £504 per year.

What is the current Bank of England base rate?

The current Bank of England base rate is 3.75% as of April 2026.

What is the Phoebus platform?

The Phoebus platform is a mortgage account servicing system that enhances efficiency through automation. It supports a full range of products, including residential and buy-to-let.

What is the overall outlook for mortgage rates?

While some major lenders have recently cut fixed rates, the overall outlook for mortgage rates remains uncertain due to fluctuating interest rates. Borrowers should monitor the mortgage rate comparison for potential changes.
May 6, 2026
UK Homeowners Spend 21% of Income on Mortgages: What This Means in 2026
In this article:
As of May 2026, UK homeowners are committing around 21.3% of their gross income to initial mortgage repayments, according to a recent report by UK Finance. This is the highest level since 2008, with significant regional differences in mortgage affordability and buy-to-let returns.

Dissecting the Numbers

Regional Differences

UK Finance’s Lending Where We Live report reveals that borrowers in North Norfolk and the London Borough of Hillingdon spend over a quarter of their gross income on mortgage repayments, at 25.7% and 25.1% respectively. Other areas of high expenditure include Luton (24.9%), Slough (24.8%), and Spelthorne (24.8%), all within the London commuter belt. In contrast, seven of the ten most affordable local authorities are in Scotland, where borrowers need almost nine percentage points less of their gross income to cover initial mortgage repayments.

Buy-to-Let Returns

Despite challenges such as stamp duty surcharges and stricter underwriting standards, all regions of the UK saw growth in buy-to-let purchase activity in 2025. However, returns varied widely. The highest rental yields were found in Scotland, with a gross yield of over 9%. Meanwhile, the lowest returns were scattered across England, with areas such as South Hams in Devon, Cambridge in East Anglia, the Derbyshire Dales, and Rutland all seeing returns of around 5%.

Worked Examples

First-Time Buyer

Consider a first-time buyer in London, where the typical borrower has £280,000 of mortgage debt. Assuming a 75% loan-to-value ratio, their mortgage would be £210,000. With the current mortgage rates at 3.75%, their monthly repayment would be approximately £1,029. This represents around 25% of the average UK gross monthly income of £4,110, which is above the national average of 21.3%.

Remortgager

Now consider a borrower in Northern Ireland, where the average mortgage debt is significantly lower at £99,500. If they were to remortgage at 75% loan-to-value, their mortgage would be approximately £74,625. With the same interest rate of 3.75%, their monthly repayment would be around £366. This represents just over 8% of the average UK gross monthly income, significantly below the national average.

Market Context

These figures represent a significant increase from 2024, when the average UK homeowner spent just over 18% of their income on mortgage repayments. The increase in the proportion of income spent on mortgages is likely due to the rise in the Bank of England base rate, which currently stands at 3.75% as of April 2026.

Frequently Asked Questions

What percentage of my income should I spend on a mortgage?

The general rule of thumb is to spend no more than 28% of your gross monthly income on housing expenses, including your mortgage. However, as of 2025, the average UK homeowner is spending 21.3% of their income on mortgage repayments.

What are the least affordable areas in the UK for mortgage repayments?

As of 2025, the least affordable areas in the UK for mortgage repayments are North Norfolk and the London Borough of Hillingdon, where borrowers spend over 25% of their gross income on mortgage repayments.

What are the most affordable areas in the UK for mortgage repayments?

As of 2025, seven of the ten most affordable local authorities for mortgage repayments are in Scotland, where borrowers need almost nine percentage points less of their gross income to cover initial mortgage payments.

What is the average mortgage debt in the UK?

As of 2025, the typical borrower in London has £280,000 of mortgage debt, the highest in the UK. The region with the next highest level is the South East, while Northern Ireland has the lowest average mortgage debt at £99,500.
May 6, 2026
Cloud Mortgages Joins Stonebridge Network: Impact on UK Mortgage Market in 2026
In this article:
Cloud Mortgages, a rapidly growing mortgage firm, has switched its network to Stonebridge from Primis. The firm, which has grown from two advisers in 2025 to six and plans to expand to 10 by the end of the year, is known for its strong customer service reputation. This move could potentially influence the mortgage rates and services available to borrowers in the Midlands, North West, and Scotland.

Impact on Mortgage Rates and Services

First-Time Buyer Scenario

Consider a first-time buyer in Nottingham looking to purchase a property valued at £250,000 with a 90% loan-to-value (LTV) ratio. With the current mortgage rates at 3.75%, their monthly repayment would be approximately £1,169. However, if Cloud Mortgages, under the Stonebridge network, were able to offer a competitive rate of 3.5%, the monthly repayment would decrease to £1,122, resulting in a yearly saving of £564. This could make homeownership more affordable for first-time buyers, especially in a market where property prices have been steadily rising.

Remortgager Scenario

A remortgager in the North West with a £200,000 mortgage at a 75% LTV could also benefit. At the current base rate of 3.75%, their monthly repayment would be around £926. If Cloud Mortgages were able to offer a lower rate of 3.5% under the Stonebridge network, the monthly repayment would drop to £898, resulting in a yearly saving of £336. This could provide significant relief for homeowners looking to remortgage, especially in a market where rates have been on an upward trend.

Landlord Scenario

For a landlord with a £200,000 interest-only buy-to-let mortgage, the monthly cost at the current base rate of 3.75% would be around £625. If Cloud Mortgages, under the new network, were able to offer a lower rate of 3.5%, the monthly cost would drop to £583, resulting in a yearly saving of £504. This could potentially increase rental yields for landlords in a market where rental demand is high but profits have been squeezed by rising costs.

Market Context

As of May 2026, the UK base rate stands at 3.75%, a significant increase from the 0.1% rate seen in May 2021 according to the Bank of England. This rise has led to increased mortgage rates across the board. Over the past year, the average two-year fixed mortgage rate has risen from 1.19% in May 2025 to 1.95% in May 2026, according to mortgage rate comparison data. Cloud Mortgages’ move to the Stonebridge network could potentially offer more competitive rates to borrowers, providing some relief in a market characterized by rising costs.

Frequently Asked Questions

What does Cloud Mortgages’ switch to Stonebridge mean for borrowers?

This move could potentially lead to more competitive mortgage rates and improved services for borrowers in the Midlands, North West, and Scotland.

How could this move affect first-time buyers?

First-time buyers could potentially benefit from lower mortgage rates. For example, a 0.25% reduction in rate on a £250,000 mortgage could lead to a yearly saving of £564.

What could this mean for those looking to remortgage?

Remortgagers could also benefit from lower rates. A 0.25% reduction on a £200,000 mortgage could result in a yearly saving of £336.

How does this fit into the wider market context?

In a market characterized by rising mortgage rates due to a higher base rate, Cloud Mortgages’ move to Stonebridge could potentially offer some relief to borrowers by providing more competitive rates.
May 5, 2026