Market Update 2025: Motion Mortgages

Now that January's behind us, I thought I'd take a moment to create a video and explain what's been happening in the world of mortgages so far.

So January was a bit of a roller coaster. We saw some initial interest rate reductions, but then the US election created some jitters in the market and lenders briefly increased their fixed rates again.

However, the good news is that with the anticipated Bank of England base rate reduction this Thursday, we're already seeing lenders proactively reduce their fixed rates again. So things are looking a bit more positive on that front.

Beyond interest rates, lenders are making it easier for borrowers in other ways too. Affordability calculations are improving and we're seeing some fantastic opportunities, especially for first time buyers.

Several banks are now able to offer loans of up to 5 1/2, even 6 times the household income, subject to the lending criteria. Of course, this can make a huge difference to what you can borrow.

We're also seeing lenders extend the maximum age limits, with some now lending up to the age of 75, even 80 in some cases. This allows for much longer mortgage terms, which can significantly help reduce your monthly payments.

Another big improvement is how lenders are handling people starting new jobs or with salary increases. Almost all major High Street lenders can now consider new starters or salary increases even up to three months before the new position starts. All we need is a contract of employment to confirm the new structure or the new job.

Continuity of employment is key here, with most lenders still preferring at least three to six months continuous employment.

We can of course help those just starting out, but options might be a bit more limited. So if you're about to start a new job or have recently received a pay rise, get in touch and we can explore all the options for you.

So All in all, 2025 has started with some really positive changes in the mortgage market. Lenders are definitely more willing and able to help customers to get the most up to date information on rates and the lending criteria, or to discuss your specific needs and circumstances.

Please don't hesitate to call our team and we'd be delighted to help find the right mortgage for you.

Best wishes,

Dave