Newsletter
Morgages and The Property Market
Scottish Housing News Reports That - UK mortgage rates have fallen, with the lowest five-year fixed rate dropping below 4% for the first time since April 2024.
Nationwide Building Society is leading the charge, offering a 3.99% five-year fix and cutting other fixed deals by up to 0.25 percentage points.
This follows similar moves by other major lenders, driven by competition and hopes of falling interest rates. The drop in rates could save borrowers hundreds of pounds a month, providing relief for those facing higher repayments as they come off old deals.
While fixed rates are declining, Nationwide has increased the margin on some of its variable rate tracker deals.
The Bank of England’s next interest rate decision in August could see the base rate cut, potentially leading to further reductions in mortgage rates. However, some economists predict that the Bank of England may not cut rates until September.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Mortgage rates could fall further, but it is difficult to tell how quickly and by what margins.
“Typically, a brand with a large presence in the market that cuts rates can encourage other lenders to review their rates to compete, so as the lowest five-year rates have edged closer to 4% from some of the biggest high street brands (Halifax, Lloyds Bank, Barclays Mortgage, NatWest), the market did appear on course to reveal a sub-4% deal.
“Borrowers sitting on the fence may remain patient for a little while longer. However, on the flip side, those who feel this might now be their chance could see if they can lock into a deal early, as some lenders will let borrowers do this from three to six months in advance.
“Those waiting for the Bank of England to cut base rate may be crossing their fingers for August, but this has split opinions among economists who are now pointing towards September at the earliest due to stubborn service inflation.”
What will happen in the housing market in the third quarter of the year?
As we move into the third quarter of the year, the property market is showing strong signs of robust performance, particularly for homes of a high standard. This scenic region in central Scotland has become increasingly attractive to buyers seeking a balance between rural charm and urban convenience, offering excellent transport links to Edinburgh and Glasgow.
Recent trends indicate that properties with high-quality finishes, modern amenities, and energy-efficient features are in high demand. Buyers are particularly drawn to homes that offer spacious layouts, innovative designs, and are located in well-maintained communities. The emphasis on sustainability and quality craftsmanship is proving to be a significant factor for buyers willing to invest in properties that offer long-term value.
Economic stability, coupled with competitive interest rates, has encouraged potential homeowners and investors to seek out premium properties in the area. With great schools, parks, and community facilities further enhance appeal, particularly for families and professionals. As the year progresses, the demand for high-standard homes is expected to continue, making this an opportune time for sellers to enter the market and for buyers to secure properties with promising appreciation potential.
There is always a market for homes which are in need of updating and there are lots of buyers looking to personalise their new home and can't wait to 'get stuck in' but the fact remains that the cost of carrying out upgrades are at an all time high, material and labour costs are particularly high (some have trebled since 2020) so the demand for these properties can be lower. Speak to our team of experts if you would like advice on how to maximise the value and appeal of your home.
Overall, the West Lothian property market is well-positioned for growth, with high-standard homes leading the charge into the latter half of the year.