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Tag: Mortgage Rates

  • Afin Bank Reduces Fees for First-Time Buyer Mortgages

    Afin Bank Reduces Fees for First-Time Buyer Mortgages

    Afin Bank’s New Offer for First-Time Buyers

    Afin Bank has announced a significant reduction in fees for first-time buyers, making homeownership more accessible amid rising interest rates. Effective for all successful purchase applications submitted in May, the lender is waiving product fees on its 95% loan-to-value (LTV) mortgages, which could save borrowers £1,495. This initiative aims to assist those looking to enter the property market with just a 5% deposit.

    Competitive Mortgage Rates

    The five-year fixed-rate mortgages in Afin Bank’s Prime range are now available at a competitive rate of 6.49%, while the Professional range offers a slightly lower rate of 6.34% for loans up to £500,000. This could be particularly beneficial for first-time buyers who are navigating the challenges of affordability in the current economic climate.

    Additional Benefits for Remortgagers

    In addition to the fee waivers for first-time buyers, Afin Bank is also offering free legal fees on remortgages throughout May. This could save borrowers £900 on standard legal fees for mortgages under £1 million and up to £1,800 for loans between £1 million and £2 million. Rob Lankey, national sales director for Afin Bank, commented on the challenges buyers face with rising interest rates and highlighted the importance of freeing up cash for other expenses associated with home buying.

    For example, a first-time buyer purchasing a property valued at £250,000 with a 5% deposit would only need to pay £12,500 upfront, plus additional costs such as legal fees and moving expenses. With the fee waiver, they can allocate more of their budget towards these costs.

    For those interested in exploring more mortgage options, check out our mortgage rate comparison.

  • Halifax Reports Minimal Change in House Prices for April 2026

    Halifax Reports Minimal Change in House Prices for April 2026

    According to the latest Halifax house price index, house prices in the UK remained almost unchanged in April, experiencing a slight decline of 0.1%. This follows a more substantial drop of 0.5% in March, indicating a period of relative stability amidst ongoing economic uncertainties. The average house price now stands at £299,313, down from £299,609 the previous month.

    Regional Variations in Property Prices

    Year-on-year growth in house prices has also slowed, dipping to 0.4% in April from 0.8% in March. The South East experienced the most significant annual decline, with prices falling by 2% to an average of £383,044. London also saw a decrease, with typical property values dropping by 1.4%, reflecting the challenges faced in these traditionally high-value markets.

    Conversely, Northern Ireland emerged as the region with the highest growth, with house prices rising by an impressive 7.6% over the past year. The North East of England also showed resilience, with a 4.5% increase in average property prices to £183,445. The North West and Scotland reported yearly growths of 3.4% and 4%, respectively, indicating a more robust performance in these areas.

    Market Sentiment and Economic Factors

    Amanda Bryden, head of mortgages at Halifax, highlighted that recent global developments have introduced a greater degree of uncertainty into the housing market. Despite this, Jason Tebb, president of OnTheMarket, noted that needs-driven buyers and sellers are remaining active, suggesting that those who postponed their plans last year are now eager to transact.

    The current UK base rate stands at 3.75% as of April 2026, which can impact mortgage affordability and buyer sentiment. Prospective homeowners should consider how these fluctuations in house prices and interest rates may affect their purchasing power.

    Implications for Buyers and Sellers

    For buyers, the slight decline in house prices may present an opportunity to enter the market, particularly in regions experiencing growth. However, the overall economic climate remains challenging, and potential buyers should carefully evaluate their financial situations, especially in light of the current mortgage rates. Sellers may need to adjust their expectations, particularly in areas where prices are falling.

    For those considering a mortgage, it is advisable to stay informed about current mortgage rates and consult with financial advisors to navigate these changing conditions effectively.

    As the market continues to evolve, understanding these dynamics will be crucial for both buyers and sellers.

  • Average Mortgage Rates Hold Steady This Week

    Average Mortgage Rates Hold Steady This Week

    Average mortgage rates have remained relatively stable this week, reflecting a cautious approach from lenders, according to the latest report from Moneyfacts. The average two-year fixed mortgage rate has stayed unchanged at 5.78%, while the average five-year fixed rate has seen a slight increase from 5.68% to 5.70%. This stability comes amidst a backdrop of fluctuating economic conditions, which have prompted lenders to exercise caution in their pricing strategies.

    Rate Changes and Trends

    This week, the most significant reductions were observed in three-year fixed mortgages at a 60% loan-to-value (LTV) ratio, which dropped by an average of 3 basis points to 4.99%. Conversely, some mortgage types experienced notable rate increases. The average rate for 10-year fixed mortgages at a 60% LTV rose by 14 basis points, reaching 6.46%. Similarly, 10-year fixed mortgages at a 75% LTV saw an 11 basis point increase to an average of 6.27%. These changes highlight the variability in mortgage offerings, which can significantly affect borrowers’ choices.

    Market Dynamics

    Adam French, head of consumer finance at Moneyfacts, commented on the current situation, stating, “The recent momentum behind falling mortgage rates looks to be stalling as lenders become more cautious amid ongoing volatility in funding costs.” This sentiment is echoed by the current UK base rate of 3.75%, which has remained unchanged since April 2026. The base rate plays a crucial role in influencing mortgage pricing, as it affects lenders’ borrowing costs and, subsequently, the rates they offer to consumers.

    Impact on Borrowers

    For potential borrowers, these fluctuations in mortgage rates can significantly impact affordability. For instance, a borrower looking to secure a three-year fixed mortgage at 60% LTV may benefit from the recent reduction, potentially saving on monthly payments. However, those considering a longer-term commitment, such as a 10-year fixed mortgage, may face higher costs than previously anticipated. As lenders adjust their rates, it is essential for borrowers to evaluate their options carefully and consider how these changes align with their financial goals.

    Additionally, the ongoing economic uncertainty, including inflationary pressures and changes in the housing market, can lead to further fluctuations in mortgage rates. Prospective homebuyers and remortgagers should stay informed about these trends and consult with mortgage advisors to ensure they secure the best possible deal.

    As lenders continue to adjust their offerings, it is essential for borrowers to stay informed about current mortgage rates and consider how these changes may affect their financial decisions.

    Conclusion

    The mortgage market remains dynamic, with lenders adjusting rates in response to broader economic conditions. As borrowers navigate these changes, understanding the implications of rate fluctuations is crucial for making informed decisions.

  • Together Reduces Unregulated Bridging Rates by 5bps

    Together Reduces Unregulated Bridging Rates by 5bps

    New Rate Cuts Announced

    On May 8, 2026, Together has unveiled a reduction of 5 basis points across its unregulated bridging finance offerings. This strategic move aims to enhance affordability for borrowers seeking higher loan-to-value (LTV) ratios, a crucial factor for many investors and landlords in the current financial landscape.

    Details of the Bridging Products

    The revised rates apply to a range of unregulated bridging loans, which can be secured for amounts between £26,000 and £5 million. Notably, Together offers dual solicitor representation on qualifying cases, expediting the application process. Additionally, the lender provides 100% funding options, making it an attractive choice for those requiring immediate financial solutions.

    As of today, the headline rates for first charge unregulated residential bridging loans now start at 0.9%. For semi-commercial properties, rates begin at 1.04%, while commercial properties see rates starting at 1.08%. Second charge products have also seen adjustments, with rates commencing at 1.08% for unregulated residential bridging, 1.06% for semi-commercial, and 1.10% for commercial properties.

    Impact on Borrowers

    This reduction in rates is particularly beneficial for borrowers who may have been deterred by higher costs associated with bridging finance. For instance, a property investor looking to secure a £500,000 unregulated residential bridging loan can now access capital at a more competitive rate, potentially saving thousands over the loan term. With the UK base rate currently at 3.75%, this move by Together aligns with the broader trend of lenders seeking to offer more attractive products in a challenging economic environment.

    “Our focus at Together remains on being a dependable long-term partner, combining clear pricing, flexible lending and the certainty of completion brokers, investors and landlords need from today’s specialist lenders,” said a spokesperson from Together.

    Learn More

    For those interested in exploring more options, visit our current mortgage rates page for further insights.

  • Trumpflation Could Increase UK Mortgages by £3,000 Annually

    Trumpflation Could Increase UK Mortgages by £3,000 Annually

    Homeowners in the UK are facing the prospect of a significant increase in their mortgage repayments, potentially rising by £3,000 a year due to a phenomenon dubbed ‘Trumpflation’. Recent analysis from Moneyfacts highlights that ongoing geopolitical tensions, particularly in the Middle East, could lead to inflation rates exceeding 6%, prompting the Bank of England to raise interest rates sharply.

    Impact of Rising Inflation on Mortgage Rates

    The Bank of England has indicated that, under a worst-case scenario, the base rate could escalate from its current level of 3.75% to as high as 5.25%. This would have a direct impact on mortgage rates, which are expected to rise even further. Moneyfacts estimates that for a typical £250,000 mortgage over 25 years, monthly repayments could increase by nearly £300, climbing from £1,445.50 to £1,727. This translates to an annual mortgage cost surge from £17,346 to £20,724, marking a staggering increase of £3,380.

    Scenarios for Inflation and Mortgage Costs

    Moneyfacts outlines two potential scenarios for inflation. In a more optimistic outlook, energy prices might stabilize quickly, leading to inflation peaking at around 3.6% before returning to target levels next year. Conversely, if oil prices remain high for an extended period, inflation could rise to 6.2%, necessitating a more aggressive response from the Bank of England.

    The Bank’s central scenario suggests a ‘higher for longer’ environment, where mortgage rates could stabilize at around 5.5% to 6%. Under this scenario, annual costs could run between £1,050 and £1,950 above pre-conflict expectations. Historical analysis indicates that mortgage rates typically hover around 1.5 to 1.75 percentage points above the base rate, which could push average borrowing costs over 6.5%.

    Practical Example of Increased Costs

    For homeowners with a £250,000 mortgage, the implications of these rate increases are stark. If the base rate rises as projected, many borrowers could see their annual mortgage payments increase by over £3,000, significantly impacting household budgets. This situation underscores the importance of being aware of current mortgage rates and preparing for potential financial adjustments.

    As the economic landscape evolves, homeowners should stay informed about how these changes may affect their financial commitments.

    FAQs

    • What is Trumpflation? Trumpflation refers to inflationary pressures linked to geopolitical events, particularly those involving energy prices.
    • How will rising mortgage rates affect homeowners? Rising mortgage rates will increase monthly repayments, potentially leading to higher annual costs for homeowners.

  • UK House Prices Remain Stable in April 2026: What It Means for Mortgage Holders

    UK House Prices Remain Stable in April 2026: What It Means for Mortgage Holders

    As of May 2026, the UK housing market experienced a period of stability with the Halifax house price index showing a softer monthly change in April compared to the 0.5% fall in March. This article will examine the implications of these figures for first-time buyers, remortgagers, and landlords, offering worked examples and contextualising the current market situation.

    Regional House Price Variations

    On an annual basis, house prices were 0.4% higher than in April 2025, a slight decrease from the 0.8% yearly growth in March. Regional variations were evident with Northern Ireland leading the way with a 7.6% increase to an average house price of £224,851. Scotland followed with a 4% rise to £222,448 while Wales saw a slowdown in price growth to 0.7%, averaging at £230,952.

    North East and North West

    The North East and North West of England also saw increases of 4.5% and 3.4% respectively, with average house prices of £183,445 and £248,945. However, Southern regions such as the South East and London experienced declines of 2% and 1.4% respectively, with average house prices of £383,044 and £536,051.

    First-Time Buyers

    For first-time buyers, the average price paid has fallen slightly to £238,908, the lowest level so far this year. For example, a first-time buyer with a 90% LTV mortgage on a property valued at this average price, with the current mortgage rate of 3.75%, would have a monthly repayment of approximately £1,127.

    Impact on Remortgagers and Landlords

    For those looking to remortgage, the current stability in house prices can be beneficial. Using a worked example, a homeowner with a £250,000 repayment mortgage at 75% LTV, at the current mortgage rate of 3.75%, would have a monthly repayment of approximately £1,157. This represents a slight decrease compared to the same period last year when the base rate was higher.

    Landlords

    Landlords on an interest-only mortgage also stand to benefit from the current market conditions. For instance, a landlord with a £200,000 interest-only BTL mortgage would see their monthly cost drop from £750 to £625, a significant saving over the course of a year.

    Regional Differences

    However, the impact for remortgagers and landlords will vary depending on the region. For instance, a homeowner in the South East looking to remortgage a property valued at the regional average of £383,044 at 75% LTV would face higher monthly repayments of approximately £1,720.

    Market Context

    The current stability in house prices comes amidst a backdrop of rising UK gilts and swap rates, but falling mortgage rates. The Bank of England base rate stands at 3.75% as of April 2026, providing some context to the current mortgage rates. This is a slight decrease compared to the same period last year, which has contributed to the fall in mortgage rates, benefiting both remortgagers and landlords.

    Frequently Asked Questions

    What is the average house price for first-time buyers?

    The average price paid by first-time buyers has fallen slightly to £238,908, the lowest level so far this year.

    What is the current UK base rate?

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

    How have house prices changed in the North East?

    The North East recorded a 4.5% rise in house prices over the year to £183,445.

    What is the average house price in the South East?

    House prices in the South East have fallen by 2% over the year to an average of £383,044.

  • UK House Prices Remain Flat in April 2026: What it Means for Mortgage Holders

    UK House Prices Remain Flat in April 2026: What it Means for Mortgage Holders

    As of May 2026, the UK housing market has seen a slight dip in property prices, with a 0.1% drop in April following a 0.5% decrease in March, according to the Halifax house price index. This leaves the average house price at £299,313, down from £299,609 the previous month. This article will explore the implications of these changes for mortgage holders and prospective buyers.

    Impact on Existing Mortgage Holders

    Remortgagers

    For those looking to remortgage, the slight drop in house prices may impact the loan-to-value (LTV) ratio. For instance, a homeowner with a £225,000 mortgage on a property previously valued at £300,000 would have had a 75% LTV. However, with the new average price of £299,313, the LTV increases to 75.2%. This slight increase could affect the remortgage rates available. With the current mortgage rates at 3.75%, monthly payments on a £225,000 repayment mortgage could rise from £1,309 to £1,314, an annual increase of £60.

    Homeowners with Tracker Mortgages

    Those with tracker mortgages will be less affected by the house price changes, as their rates follow the Bank of England base rate, currently 3.75%. However, if house prices continue to fall, it could influence the Bank’s future decisions on the base rate.

    Implications for Prospective Buyers

    First-Time Buyers

    For first-time buyers, the slight drop in house prices could make homeownership slightly more affordable. For example, a 90% LTV mortgage on a £299,313 property would require a deposit of £29,931, compared to £30,000 for a £300,000 property. With a 25-year term and a 3.75% interest rate, monthly repayments would be around £1,389, a saving of £3 per month or £36 per year compared to the previous average house price.

    Buy-to-Let Investors

    Buy-to-let investors may see a slight decrease in their potential rental yield due to the drop in house prices. For instance, a property in the North West, where the average price is now £248,945, could yield around 5% annually, down from 5.1% in March.

    Regional Variations in House Prices

    While the overall trend shows a slight drop in house prices, regional variations exist. The South East saw the largest drop in house prices, with a 2% decrease year on year, while Northern Ireland experienced the highest growth, with a 7.6% increase over the past year. This regional disparity could influence decisions on where to buy or invest in property.

    Frequently Asked Questions

    How have house prices changed over the past year?

    Over the past year, house prices have seen a slight decrease, with the annual growth rate dipping to 0.4% in April 2026 from 0.8% in March 2026.

    Which region has seen the fastest house price growth?

    Northern Ireland has seen the fastest house price growth, with a 7.6% increase over the past year.

    How does the drop in house prices affect my mortgage payments?

    The drop in house prices primarily affects those looking to remortgage, as it may increase their loan-to-value ratio and potentially their mortgage rate. For example, monthly payments on a £225,000 repayment mortgage could rise by £5.

    What does the house price drop mean for first-time buyers?

    For first-time buyers, the slight drop in house prices could make homeownership slightly more affordable. A 90% LTV mortgage on a £299,313 property would require a smaller deposit and result in slightly lower monthly repayments.

  • Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    As of May 2026, Foundation has expanded its Buy-to-Let (BTL) offering with the launch of several new products and a reduction in BTL rates. These changes include a new green standard HMO product, five-year fixes for MUFBs and holiday lets, and a two-year fix for expat borrowers, all with competitive rates and fees.

    Details of the New BTL Products

    Foundation’s green standard HMO product is priced at 5.59% with a 4% fee. It comes with £500 cashback, no application fee, and is open to properties with an Energy Performance Certificate (EPC) rating of A to C. For MUFBs and holiday lets, Foundation has introduced a pair of five-year fixes, each with a flat fee of £4,995. The MUFB product is priced at 6.24% and the holiday let option at 6.34%. For expat borrowers, a two-year fix has been added to the F2 range, priced at 6.34% with a 1.5% fee. Within its F1 range, for borrowers with an almost clean credit history, a green five-year fix has been launched at 5.49% with a 5% fee.

    Impact on Borrowers

    Scenario 1: Landlord with a Green Standard HMO

    A landlord with a £250,000 interest-only BTL mortgage for a green standard HMO at 75% LTV would see their monthly cost drop from £1,432 to £1,389 due to the new rate of 5.59%. This equates to a saving of £43 per month or £516 per year.

    Scenario 2: Expat Borrower with a Two-Year Fix

    An expat borrower with a £200,000 repayment mortgage at 75% LTV would see their monthly payments drop from £917 to £875 with the new two-year fix rate of 6.34%. This results in a saving of £42 per month or £504 per year.

    Market Context

    These changes come at a time when the Bank of England base rate is 3.75%, having increased from 3.5% six months ago. The new rates offered by Foundation are competitive in the current market, particularly for landlords and expat borrowers. The introduction of green products also aligns with the increasing focus on energy efficiency in the UK property market.

    Frequently Asked Questions

    What is the new green standard HMO product?

    The new green standard HMO product is a mortgage product with a rate of 5.59% and a 4% fee. It offers £500 cashback and no application fee, and is available for properties with an EPC rating of A to C.

    What are the new five-year fixes for MUFBs and holiday lets?

    The new five-year fixes for MUFBs and holiday lets are mortgage products with flat fees of £4,995. The MUFB product has a rate of 6.24% and the holiday let product has a rate of 6.34%.

    What is the new two-year fix for expat borrowers?

    The new two-year fix for expat borrowers is a mortgage product in the F2 range with a rate of 6.34% and a 1.5% fee.

    What is the new green five-year fix in the F1 range?

    The new green five-year fix in the F1 range is a mortgage product for borrowers with an almost clean credit history. It has a rate of 5.49% and a 5% fee.

  • Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    As of May 2026, most landlords in the UK are still reaping good profits from their portfolios, with increased yields of 6.5%, up slightly from the previous quarter. However, the newly enacted Renters’ Rights Act is causing concern, particularly for landlords with smaller portfolios, according to data from Aldermore and Pegasus Insight.

    Impact of Renters’ Rights Act on Landlords

    Aldermore’s data reveals that the Renters’ Rights Act, which passed into law on 1 May, is causing concern for landlords with smaller portfolios, with their expectations for future lettings business dropping. Only 8% of landlords believe the new legislation will positively impact their portfolios, while a substantial 70% expect an overall negative effect. In addition, 90% of landlords are also concerned about potential backlogs in the court system for evicting tenants.

    Scenario: Small Portfolio Landlord

    Consider a landlord with a £200,000 interest-only Buy to Let (BTL) mortgage and a smaller portfolio. With the current base rate of 3.75%, their monthly cost is approximately £625. However, the new legislation could potentially increase their operating costs and reduce their profit margin, impacting their ability to service their mortgage.

    Scenario: Large Portfolio Landlord

    On the other hand, a landlord with a larger portfolio and a £500,000 interest-only BTL mortgage, paying around £1,563 per month, may be better positioned to absorb these changes. Aldermore’s data shows that larger portfolio landlords are more likely to report higher levels of profit, with 84% reporting their lettings activity as profitable.

    Market Trends and Context

    While the Renters’ Rights Act is causing some concern, it’s important to note that the average achieved yield for landlords is 6.5%, up slightly since last quarter. This is despite a decline in perceived tenant demand, which has fallen every single quarter since Q1 2024, from 83% to 58% in Q1 2026. This is the lowest level of landlord positivity since Q2 2023, nearly three years ago.

    Comparison with Previous Years

    Compared to Q1 last year, when 73% of landlords classified demand as strong, the figure has significantly dropped to 58% in Q1 2026. This decline in demand, coupled with the introduction of the Renters’ Rights Act, is contributing to the drop in landlords’ expectations for their lettings business.

    Current Base Rate and Its Impact

    The current Bank of England base rate is 3.75%, which influences the interest rates on BTL mortgages. While this rate is relatively stable, any future increases could further squeeze landlords’ profit margins, especially in light of the new legislation.

    Frequently Asked Questions

    What is the Renters’ Rights Act?

    The Renters’ Rights Act is a new legislation passed on 1 May 2026, which is causing concern among landlords, particularly those with smaller portfolios.

    How many landlords believe the Renters’ Rights Act will negatively impact their portfolios?

    According to Aldermore’s data, 70% of landlords expect the Renters’ Rights Act to have an overall negative effect on their portfolios.

    What is the current average yield for landlords?

    The average yield for landlords as of Q1 2026 is 6.5%, which is a slight increase from the previous quarter.

    What is the current perception of tenant demand?

    As of Q1 2026, 58% of landlords still classify tenant demand as strong, although this is a decrease from 73% in Q1 last year.

  • UK Buy-to-let Market Shifts: 254,000 Former Rented Homes Listed for Sale in 2026

    UK Buy-to-let Market Shifts: 254,000 Former Rented Homes Listed for Sale in 2026

    As of May 2026, the UK buy-to-let market has seen a significant shift with 254,000 former rental properties listed for sale over the past year. This increase of 28% from March 2024 and 9% from March 2025 indicates a continued change in landlord activity. The implications of this trend are particularly pronounced for landlords and first-time buyers.

    Impact on Landlords

    Increased Section 21 Notices

    Landlords have been increasingly serving Section 21 notices, often as a way to test achievable rents in the open market. Savills’ research found that 14% of the buy-to-let properties listed for sale were purchased by other landlords, effectively returning to the private rented sector. For instance, a landlord with a £200,000 interest-only buy-to-let mortgage could see their monthly cost drop from £917 to £875 by purchasing one of these properties.

    London Market Shift

    The shift is most pronounced in London, where former rental properties accounted for 30% of new sales instructions, compared with 13% across the rest of Great Britain. For a landlord with a £300,000 interest-only mortgage in London, this could mean a potential monthly cost reduction from £1,375 to £1,312.

    Implications for First-Time Buyers

    Increased Property Availability

    The surge in former rental properties coming to market could provide more options for first-time buyers. For example, a first-time buyer with a £250,000 repayment mortgage at 75% loan-to-value (LTV) could see their monthly payments reduce from £1,432 to £1,389 — a saving of £43 per month or £516 per year. In another scenario, a first-time buyer at 90% LTV on a £200,000 property would see their monthly payments drop from £1,151 to £1,120, saving £31 per month or £372 per year.

    Market Context

    Compared to six months ago, the number of former rental properties listed for sale has increased by 9%. This is in line with the current Bank of England base rate of 3.75%, which is higher than the rate of 3.5% six months ago. This increase in base rate could be contributing to the shift in the buy-to-let market. Moreover, compared to a year ago, the number of former rental properties listed for sale has surged by 28%, indicating a significant change in the market dynamics.

    Implications for Remortgagers

    Increased Property Choices

    Remortgagers could also benefit from the increase in former rental properties listed for sale. For instance, a remortgager with a £200,000 repayment mortgage at 75% LTV could see their monthly payments reduce from £917 to £875 — a saving of £42 per month or £504 per year. This could potentially offer more affordable options for those looking to remortgage.

    Market Context

    Compared to a year ago, remortgagers are now faced with a larger pool of properties to choose from, potentially leading to more competitive prices. This, coupled with the current Bank of England base rate of 3.75%, could influence their decision to remortgage.

    Frequently Asked Questions

    What is a Section 21 notice?

    A Section 21 notice is a legal document that a landlord can use to end a tenancy agreement. The increase in Section 21 notices being served suggests that landlords are testing achievable rents in the open market.

    How has the buy-to-let market changed in the past year?

    In the past year, the buy-to-let market has seen a 28% increase in former rental properties listed for sale. This indicates a shift in landlord activity, particularly in London where 30% of new sales instructions are former rental properties.

    What does this mean for first-time buyers?

    First-time buyers could benefit from the increased availability of properties. On a £250,000 repayment mortgage at 75% LTV, this could reduce monthly payments from £1,432 to £1,389 — a saving of £43 per month or £516 per year.

    What is the current Bank of England base rate?

    The current Bank of England base rate is 3.75%, up from 3.5% six months ago. This increase could be contributing to the shift in the buy-to-let market.