Is a Remortgage Right for You?

Adapted from a Rightmove Property News article 8 May 2025 The Bank of England has voted to reduce the Base Rate by 0.25% for the second time this year, taking it to 4.25%. Base Rate was held at 4.5% in March after it was cut by 0.25% in February. The Bank meets every six weeks to decide what should happen to interest rates, with the aim of keeping inflation to its target and keeping the wider economy healthy. Inflation is at 2.6%, which is still above the 2% target the government sets for the Bank. The financial markets have been widely expecting a cut to interest rates this week, as continuing to hold rates could have a negative knock-on effect on economic growth, impacting businesses and households further down the line. What’s happened to mortgage rates recently? Mortgage rates have continued to come down slowly in recent weeks. The average rate for a 2-year fixed rate mortgage has fallen by 0.05% to 4.64% compared to a week ago, while the average rate 5-year fixed rate is now 4.60%. With strong signs of home-mover activity since the start of this year, the outlook for borrowers remains stable. What does the Base Rate reduction mean for my current mortgage? Changes to the Bank’s Base Rate can impact how much interest you’ll pay on loans, including mortgages. If you’re on a fixed-rate deal, your monthly payments won’t change until the end of your deal. And if you’re on a tracker mortgage, or a variable rate mortgage that follows Base Rate changes, this month’s Base Rate reduction will mean your monthly payments will take on this drop. If you’re coming to the end of your fixed-rate mortgage soon, you’ve probably already started to think about the rate you’ll be offered on your next deal. In July 2023, the Mortgage Charter was launched to help those struggling to meet their monthly payments, as well as borrowers who are coming to an end of their fixed rates soon. The Mortgage Charter encourages lenders to be flexible and offer borrowers the chance to lock in a new deal up to six months before their current rate ends. Of course, borrowers can also look at moving to another lender – commonly known as remortgaging – but this can take longer, as you have to go through a normal lending process, such as income checks, the legal process, and maybe a valuation of your home. This all takes time, and you would want to make sure you’re looking around a few months before the end of your current deal to avoid falling onto your lender’s Standard Variable Rate (SVR) – which will cost more than the repayments you’d have made on a fixed rate mortgage. The current average for SVRs is 7.5%. What could the Base Rate reduction mean for affordability? Lenders’ ‘stress test’ calculations – which is how they calculate whether someone could afford a mortgage were their repayments to jump considerably – are directly linked to the Standard Variable Rates that we just talked about above. The ‘stressed rate’ is usually the lender’s SVR, with at least 1% added on top. So, if lenders’ SVRs reduce in line with this Base Rate cut, we might start to see affordability improve, because the stressed amount will now be lower than if Base Rate wasn’t reduced today. What could happen next? The Bank of England’s Monetary Policy Committee meets every six weeks to discuss and vote on whether interest rates should go up or down, or stay the same. History has shown that after interest rates have increased over time, they have remained flat before starting to come down. So, while we’re now seeing a gradual downward curve, it’s extremely unlikely that rates will drop back to the historic lows we saw back in 2021. The financial markets have been forecasting two-to-three more possible cuts to Base Rate in 2025. So, we could see it fall to 3.75% or further by the end of the year. Though as always, this could change depending on what happens in the broader economic environment. The next decision on interest rates will be announced at midday on 19 June 2025. If you would like Weston Mortgages Online to help you with a first-time Buyer Mortgage, Remortgage or any other Mortgage or Protection needs please call Russell Green today to book a free consultation! How to Contact Us Tel 01934 442023 Email russell@swmortgages.com Complete a form via our website www.westonmortgagesonline.com YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Our initial mortgage consultation is free and with no obligation, should you proceed to an application there will usually be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £290to £490 and this will be discussed and agreed with you at the earliest opportunity. 

Weston Mortgages Online are delighted to be able to offer a product that may offer borrowers up to 7 times their income.

A shift is taking place across the mortgage market, bringing a wave of opportunity for both prospective buyers and existing homeowners. Leading lenders are responding to expectations of falling interest rates by reducing mortgage pricing and easing affordability criteria. This development could enhance borrowing potential for many households in the months ahead.

Buying your first home is exciting, but it can also feel overwhelming—especially when saving for a deposit, understanding mortgage options, and navigating rising house prices. If you or someone you know is trying to get onto the property ladder, there are government schemes and mortgage options that can help make buying a home more achievable.

Weston Mortgages Online is an experienced Mortgage Broker based in Weston super Mare, North Somerset. Although we are based in Weston, we look after clients in the whole of the area including Burnham, Bridgwater, Clevedon, Yatton, Nailsea, Banwell, Congresbury and Worle.

Whether you're a seasoned property investor or a first-time buyer looking to venture into the world of buy-to-let properties, understanding the rates and eligibility criteria is crucial for making informed decisions.

Overview You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland. You pay the tax when you: buy a freehold property ·buy a new or existing leasehold ·buy a property through a shared ownership scheme ·are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house Thresholds The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay. The current SDLT thresholds are: Residential properties is £125,000. The threshold for non-residential land and properties is £150,000. ·The threshold for First-time Buyers is £300,000 if the property is worth £500,000 or less. How much you pay How much you pay depends on whether the land or property is residential use or non-residential or mixed-use. If you’re buying a residential property, there are different rates of SDLT if: you’re a first-time buyer you already own a property and you’re buying an additional property you’re not a UK resident You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay. You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’). How and when to pay You must send an SDLT return to HMRC and pay the tax within 14 days of completion. If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion. They’ll then add the tax to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer. If they do not do this for you, you can file a return and pay the tax yourself. Residential Property Rates You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat. SDLT only applies to properties over a certain value. The amount you pay depends on: when you bought the property how much you paid for it Rates for a single property You pay stamp duty at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property. There were different thresholds and rates for residential properties before 23 September 2022. You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’). Property or lease premium or transfer value SDLT rate Up to £125,000 Zero The next £125,000 (the portion from £125,001 to £250,000) 2% The next £675,000 (the portion from £250,001 to £925,000) 5% The next £575,000 (the portion from £925,001 to £1.5 million) 10% The remaining amount (the portion above £1.5 million) 12% Example In April 2025 you buy a house for £295,000. The SDLT you owe will be calculated as follows: 0% on the first £125,000 = £0 2% on the second £125,000 = £2,500 5% on the final £45,000 = £2,250 total SDLT = £4,750 If you’re buying your first home You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay: no SDLT up to £300,000 · 5% SDLT on the portion from £300,001 to £500,000 If the price is over £500,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. You’re eligible if you and anyone else you’re buying with are first-time buyers. If the price is over £625,000, you cannot claim the relief. Follow the rules for people who’ve bought a home before. Example You are a first-time buyer and purchase a property for £500,000. The SDLT you owe will be calculated as: 0% on the first £425,000 = £0 5% on the remaining £75,000 = £3,750 total SDLT = £3,750 New leasehold sales and transfers When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above. If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold (currently £125,000), you’ll pay SDLT at 1% on the portion over £125,000. This does not apply to existing (‘assigned’) leases. Higher rates for additional properties You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one. If you’re replacing your main residence You will not pay the extra 5% SDLT if the property you’re buying is replacing your main residence and that has already been sold. If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties. How does stamp duty work on buy-to-let properties If you’re buying an additional property, such as a buy-to-let, landlords will have to pay an extra 5% in stamp duty on top of the rates for each band. For further information and to use online calculators please visit https://www.gov.uk/stamp-duty-land-tax Please be aware that by clicking on to the above link you are leaving Weston Mortgages Online website. Please note that Weston Mortgages Online nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page. IF YOU HAVE ANY QUERIES REGARDING YOUR SPECIFIC SITUATION/LIABILITY WE RECOMMEND THAT YOU SPEAK TO YOUR SOLICITOR, CONVEYENCER OR ACCOUNTANT. For further details about the service, we offer or any other mortgage information book a consultation with one of our expert Mortgage Advisers, please contact us Please call Russell Green on 01934 442023 or email russell@swmortgages.com Visit our website www.westonmortgagesonline.com Please remember: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Our initial mortgage consultation is free and with no obligation, should you proceed to an application there will usually be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £290to £490 and this will be discussed and agreed with you at the earliest opportunity.

If your five-year fixed mortgage deal is coming to an end, you might be wondering what to do next. Many homeowners who locked in a low fixed rate several years ago are now facing a different mortgage market, where rates have changed.

Are you looking to get yourself onto the property ladder? Feeling overwhelmed by all of the options that are available to you? Don’t worry here is a guide to guide you along the basics to starting to look into getting a mortgage.