Amazing mortgage deals for the new year

As we start the new year, there are amazing mortgage deals to be found, you just have to know where to find them. Enzo Mora CEO and founder of The Mortgage Brain has the inside track.

We know from the calls we have with our customers that many homeowners and first-time buyers are unaware that we can access much better, exclusive mortgage deals than they may see advertised directly by high street lenders. If you’re about to come off a fixed rated deal, this is especially important as standard variable rates will be considerably higher and we can find you a money-saving mortgage.

How much can you afford to borrow?

Average interest rates hover around the 4.5 to 5% mark for 75% to 85% loans to value (LVT). However, depending on individual circumstances The Mortgage Brain could access two-year fixed deals at these same LTVs, over 25 years, for considerably less at around 1.54%. Our online Mortgage Finder takes you swiftly through a few questions to give you a good idea of what you can borrow. Then you can fix up a call with one of our expert mortgage advisers to dot the i’s and t’s and progress your application. It really is that simple.

Mortgage in principle

I see that Rightmove has recorded its busiest start to a year for prospective home-movers applying for a Mortgage in Principle (MIP). We say to all our customers to get a MIP from us before looking for a property so you know exactly what you can borrow based on your salary and deposit available. A record number of properties are now listed for sale, giving buyers the highest level of choice at the start of a year since 2015. Having a MIP means that you will be in a good position to have a serious offer accepted ahead of the competition. Rightmove is forecasting a larger number of transactions this year of 1.15 million, and an average asking price increase of +4%.

Are lower interest rates on the horizon?

Much is resting on any decision by the Bank of England to reduce the base rate again this year which should also result in lenders reducing mortgage rates. Any adjustments will depend on the UK’s economic performance and any outside factors that could affect it like a fallout from trade tariffs that the new Trump administration has promised, which could mean higher prices and trade wars. Some good news is that UK inflation has just seen a small drop to 2.5% and this is encouraging.

House prices on the up

New analysis from Zoopla has revealed that half of the UK’s 30 million homes increased in value in 2024 as house prices returned to growth following a fall over 2023 due to weakened buyer demand as a result of higher borrowing costs. A total of 15 million UK homes increased in value by one per cent or more in 2024, up 42 per cent from the 10.6 million homes that increased in value over 2023. The average increase in value for homes posting price gains was £7,600, with 6.9 million homes recording a price increase of £10,000 or more. Lender Nationwide has said that house prices are likely to return to 2-4% growth this year. We know how important it is to get the right mortgage deal so don’t delay in speaking to one of our advisers. It’s the best new year’s resolution you’ll make.