The housing market seems to be regaining momentum, as sales are being agreed at the fastest rate in four years. The number of sales agreed was up 6% annually in June, which coincided with the stock of new property listings going up by 14%. This indicates that buyers are regaining confidence, with demand rising by 7%. Executive Director at Zoopla, Richard Donnell, commented, “The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025.” Hoping to move by the end of year? Whether you’re upsizing, downsizing, or getting on the property ladder for the first time, we’re here to help with all your mortgage needs. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.yourmoney.com/mortgages/agreed-sales-rise-amid-more-housing-supply-and-slower-price-growth/

A new study has found nearly a third of young UK mortgage holders have no protection cover, leaving them financially vulnerable if their income suddenly stops. The research surveyed more than 1,200 homeowners aged 18 to 34, including 500 with mortgages. Among those surveyed, only 15% of young homeowners said they knew a lot about income protection and just one in three had life insurance or critical illness cover. Short-term fixes, long-term risks When asked how they would cope with a sudden loss of income, 14% said they would immediately struggle to meet their mortgage payments if they lost their income. A further 57% said they would face financial difficulty within six months. To make up for the income shortfall, 29% of respondents said they would try to take on extra work. Others would cut savings or pension contributions (23%), apply for government support like Universal Credit (21%), or consider a bank loan (12%). The report warns these are short-term solutions that could lead to greater financial strain later on. The younger generation is particularly exposed to more job uncertainty and cost-of-living pressures, making long-term planning all the more essential. High stakes for first-time buyers Paula Higgins, CEO of HomeOwners Alliance, expressed her concerns, highlighting the specific risks faced by younger buyers, “We need to do more to support young people in staying financially secure, especially as they take on the long-term responsibility of a mortgage. Ensuring they have the tools, knowledge, and support to weather life’s ups and downs is essential to helping them hold onto their homes and build a stable future.” A growing awareness – but not across all products While the findings point to an urgent need for education and better access to protection, there are signs that awareness is starting to improve. Separate research from Swiss Re reveals income protection sales have increased by 18% year-on-year. However, sales of other types of cover, including life insurance and critical illness, have declined. The message is clear - there’s an urgent need to close this awareness gap. That means clearer advice, better signposting and conversations about protection starting earlier – so that young homeowners aren’t left exposed. Don’t wait for a crisis to realise what’s missing. Speak to us today about protection insurance - because securing your income means safeguarding your home, your future and your peace of mind. Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply Source: https://www.yourmoney.com/mortgages/nearly-a-third-of-young-mortgage-holders-have-no-protection/ https://www.ftadviser.com/critical-illness/2025/6/2/nearly-a-third-of-young-mortgage-holders-do-not-have-protection/

Rural house prices are still rising faster than those in towns and cities, according to Nationwide. While the pandemic-driven rush for countryside homes has eased, demand for space continues to support stronger growth in rural areas. Most home movers over the past five years stayed in similar locations, with 63% moving within the same type of area. Just 9% moved from towns or cities to rural spots, partly balanced by 7% heading the other way. Younger buyers tended to favour urban moves, while older movers, especially those over 55, were more likely to head for the countryside, often in search of more space or a bigger garden. Source: https://www.yourmoney.com/mortgages/rural-house-price-rises-outpace-towns-and-cities/

The number of UK homeowners with more than £300,000 left to repay on their mortgage has nearly doubled in the past seven years, highlighting the growing financial strain many are facing, amid high property prices and rising interest rates. New analysis of the Financial Conduct Authority’s (FCA) Financial Lives Survey reveals that 9% of mortgage holders now owe over £300,000 – up from just 5% in 2017. In areas with the highest house prices, such as London and the South East, the proportion jumps significantly. Today, 28% of homeowners in these regions owe over £300,000, compared with 17% seven years ago. The analysis reveals a growing trend of homeowners taking on substantial mortgage debt, while household incomes have failed to keep up with rising property prices. In addition, the recent surge in mortgage costs has intensified financial pressure - especially in regions where borrowing was already high. Stretching affordability Most lenders cap borrowing at around four-and-a-half times a borrower’s annual income. But the data shows that one in seven homeowners now hold mortgage debt worth at least four times their income – a notable increase from 11% in 2017. Although this is down slightly from the 2020 and 2022 peak of 16%, it suggests many homeowners have little headroom left. The figures present a concerning picture, especially considering how many borrowers still neglect to shop around for more competitive mortgage deals. Even modest reductions in interest rates can lead to significant long-term savings over the course of a mortgage. Wider signs of financial strain The FCA survey paints a broader picture of financial vulnerability across the UK. One in 10 people reported having no savings at all. Almost a quarter of respondents were classed as having low financial resilience. Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, acknowledged the pressures many households are facing. “FCA data shows that finances are stretched for many,” she said. “But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.” Looking ahead With mortgage debt levels rising and many homeowners close to their borrowing limits, it’s vital to review your finances regularly and seek professional advice to avoid long-term financial strain. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.yourmoney.com/mortgages/proportion-of-homeowners-with-over-300000-left-to-pay-off-on-mortgage-nearly-doubles/ https://www.fca.org.uk/publication/financial-lives/financial-lives-survey-2024-key-findings.pdf

House prices update House price growth slowed to 2.1% in June, down 0.8% month-on-month. Performance varies significantly depending on the region, with Northern Ireland seeing the strongest growth of 9.7%. East Anglia was the weakest area, where house prices only increased by 1.1% annually. House prices are increasing at the fastest rate in areas with the most affordable properties. In regions where the average home is below £200,000, annual house price growth is 2.7%. On the other hand, prices are falling by 0.2% in areas where the average property is above £500,000. A buyer’s market The rise in supply of homes seems to have contributed to the slowdown in house price growth. Buyers have greater choice, with 14% more homes for sale than this time last year. In regions where supply has increased the most (London, the South East and South West), house prices have risen annually by no more than 0.5%. However, in the North of England, the West Midlands and Scotland, where supply has only marginally increased, prices have gone up by 2-3%. As the current market favours buyers, sellers have been encouraged to be realistic when pricing their properties. Richard Donnell at Zoopla said, “Keep in mind that you may have to wait longer to achieve your desired price if it’s not in line with your local market.” It’s not all bad for sellers, though. Despite high supply, sales are being agreed at the quickest rate in four years, with Rightmove suggesting that ‘spoiled-for-choice buyers are still being tempted by the right property at the right price’. How long to sell? The average home takes 45 days to find a buyer, roughly the same as last year. Time taken to sell varies by the region, with the North East the quickest at 35 days. Meanwhile, it takes at least 50 days in all southern regions of England, where there is a greater supply of homes. Regardless of location, once a home is taken off the market it can then take up to 4-5 months to complete a purchase. What’s to come? Many lenders have eased their affordability criteria, so mortgage holders can afford to borrow 20% more than they could at the start of 2025. This should boost transactions in the second half of the year and into 2026. Plus, the total number of sales is expected to increase by 5% over the course of 2025. Annual house price growth is expected to remain modest at 1-2%. Robert Gardner, chief economist at Nationwide, commented, “we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive.” Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.mortgagestrategy.co.uk/news/house-price-growth-slows-to-2-1-in-june-nationwide/ https://www.propertyreporter.co.uk/buyers-gain-ground-as-wider-choice-slows-house-price-growth-zoopla.html https://www.mortgagestrategy.co.uk/news/what-lies-ahead-for-house-prices/ https://www.zoopla.co.uk/discover/property-news/house-price-index/ https://www.rightmove.co.uk/news/articles/property-news/house-prices-hit-record-may-2025/

Nearly two-thirds of UK homebuyers faced unexpected costs in the past year, according to recent research. First-time buyers were hit hardest, with 66% encountering surprise expenses, compared to 55% of movers. The survey of over 1,000 buyers found costs such as legal fees, repairs and one-off charges often disrupted the process, with 27% naming these the most frustrating part of the home buying process. Conveyancing costs also climbed, with £1.9bn spent in 2024, up 17% on the year before. Yet despite rising conveyancing fees, unexpected costs proved most stressful for buyers. The research highlighted the need for better education around home purchase costs beyond legal fees and mortgage costs. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.ftadviser.com/mortgages/2025/5/29/two-thirds-of-homebuyers-stuck-with-unexpected-costs/

Almost half a million homeowners coming off five-year fixed rate mortgage deals taken out in 2020 could see a major spike in their monthly mortgage repayments. These borrowers have been paying an average interest rate of just 2.11%. However, if they revert to their lender’s standard variable rate (currently averaging 7.13%) when their deal comes to an end, their monthly repayments could soar to £1,227 on average, a jump of £510 a month or another £6,000 a year. Although rates have eased from recent peaks, they remain higher than the ultra-low levels seen during the pandemic. Borrowers who secured low-cost deals in 2020 are likely to face a payment shock. As a result, we advise shopping around, with our help, rather than automatically switching to your lender’s standard variable rate. Locking in a new five-year fixed rate at 4.33% could save over £3,600 a year, while a two-year fix at 4.6% could save around £3,290. It’s important to review your options early. Many lenders allow borrowers to secure a new deal up to six months in advance, helping to avoid last-minute panic and potentially saving thousands in the process. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.yourmoney.com/mortgages/remortgage/nearly-half-a-million-homeowners-could-see-substantial-increase-in-monthly-mortgage-payments/

House prices crept up again in May, with Nationwide reporting annual growth of 3.5%, slightly above April’s 3.4%. Prices also rose 0.5% month on month, once seasonal factors were taken into account. There was a surge in property transactions in March, as buyers rushed to complete purchases ahead of higher Stamp Duty charges. The number of owner-occupier completions was double the usual level and the highest since June 2021. Despite the end of the Stamp Duty holiday, Nationwide believes the housing market is holding up well. Mortgage approvals remain steady and the backdrop for buyers is still broadly supportive. Lower interest rates in the months ahead could help ease borrowing costs further. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.nationwidehousepriceindex.co.uk/reports/annual-house-price-growth-edged-higher-in-may https://www.zoopla.co.uk/discover/property-news/house-price-index/

Are you considering making mortgage overpayments? Here’s what to consider. If you can afford it, there are many advantages to overpaying your mortgage, such as: - Becoming a step closer to being mortgage-free - Reducing the amount of interest you owe - Lowering your loan-to-value ratio (LTV). However, before you make overpayments it’s vital to check the following: - Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal. - Do you have other debts that you should settle first? - Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot? Your home may be repossessed if you do not keep up repayments on your mortgage