buy-to-let mortgages fixed rate mortgages buy-to-let mortgage rates uk mortgage

UK mortgage market has started the year with floods of activity

January is always a month with an underlying feeling of trepidation in the UK mortgage industry. Will the new year progress slowly, or will it be full of activity? What we’ve seen at Fowler Smith Mortgages & Protection is the latter, writes Jonathan Fowler.

We’ve had plenty of inbound enquiries this month already – for those wanting to buy their first home, move home or invest in property. Interestingly, a number of the investor clients have been from overseas, too. It’s always a welcome sight to hear that clients based elsewhere in the globe want to focus on the United Kingdom for their property investments, and it gives a positive indication of where our market is heading.

What is also helping things, I’m sure, is that there are positive noises from market economists regarding the Bank of England’s base rate, and how it’s expected to drop multiple times this year. Although it doesn’t have a direct correlation to the swap rates, positivity is always welcomed and boosts market confidence – which, in turn, can have a positive effect on swap rates, ultimately feeding in to fixed rate pricing with lenders.

As a firm, we’ve already had a number of lenders in our offices, discussing the year ahead. Many talk about increasing market share, and also about increasing lending amounts in the UK mortgage market. This ambition and positivity evidences an increased appetite – so I’m hopeful that we’ll see some changes to lenders’ policies, hopefully opening the doors for more and more successful mortgage applications.

Latest investment trends

On the investment buy to let side of things, interestingly we’ve seen something a little different this year already. We’ve actually seen that some buy to let investors are looking to acquire property in bulk. Not just the one investment, but some buying two, three, or even a significant amount more.

I do wonder if this is due to the stamp duty changes that may have given professional landlords more confidence to be able to acquire a greater number of properties as they feel the market is less saturated at present, as some first time landlords are, maybe, holding fire. On the whole, it seems like opportunity has been created for seasoned investors, and they’re not usually ones to miss out!

Yesterday (29th January 2025), the latest reports on five year SONIA swaps are sat at 3.95% – down from 4.051% on the 27th December 2024. Slight decreases are welcomed and, coupled with lenders rallying for market share and pricing their products strategically to win business, indicates to me that UK mortgage activity will continue throughout the year.

UK mortgages for expats on the rise

Recently, we saw some statistics that more and more millionaires are leaving the United Kingdom. With lenders frequently improving their propositions, something that I’d hope that we’ll see more of this year is even more options in the UK mortgage market for expatriates and overseas nationals to purchase here in the United Kingdom. This is, quite apparently, a growing market, and should be catered for.

It leads me to, perhaps, a cliché – that it is now more prevalent than ever to choose the right UK mortgage broker when clients are looking to apply for a mortgage. Brokers have a lot to keep up with in the industry, and choosing a brokerage that is well-versed in the more complex space is important. Clients very rarely have straight forward circumstances, and it’s vital that the delivery is there for them.

On the whole, January has been an exciting month. Plenty of applications, enquiries and positive industry noises. Yes, there have been wider changes – economically and politically – but you wouldn’t have thought it. The expat clientele, in my opinion, are the ones to watch. If I were to give my predictions, they’re where I think we’ll see a lot of the activity in the property market coming from this year.

For more UK mortgage and property market news, check out our news pages.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT