What’s happening in the mortgage market right now?

If you have been keeping an eye on the UK housing market lately, you have probably noticed that the summer property season is playing out a little differently than usual. For anyone looking to buy, sell, or remortgage right now, the landscape is a mix of fresh opportunities and lingering economic calculations. The big headline dominating the market is the Bank of England’s decision to maintain the base interest rate at 3.75% . While a hold was widely anticipated by the City, the Monetary Policy Committee (MPC) split 7-2, highlighting that the battle against inflation isn’t quite a closed chapter yet. For everyday homeowners and buyers, this prolonged "wait-and-see" approach from the central bank creates a unique set of circumstances — particularly here in the South West. The South West Focus: A Buyer’s Oasis or a Seller’s Reality Check? Nationally, June has brought a historic shift. Average asking prices across the UK dipped by 0.6%, marking the sharpest June decline in 14 years. Usually, early summer brings modest price growth, but a surge of available properties has tipped the scales, handing substantial bargaining power back to buyers. In the South West , this regional dynamic is even more pronounced. · The Supply Surge: The region is seeing a high volume of homes on the market. Part of this stems from standard seasonal moves, while another portion is driven by landlords adjusting to the recently implemented Renters' Rights Act by listing properties. · Price Sensitivities: Because the South West historically commands higher average property prices than northern regions, it is naturally more sensitive to elevated borrowing costs. Property experts Savills recently adjusted their 2026 regional outlook, predicting a modest price adjustment of around -2.5% across the South West before a steady, longer-term recovery takes place. · The Reality of Moving: Interestingly, transaction data shows that needs-based buyers (those relocating for family, schools, or work) are still driving healthy activity, notably in hot spots like Plymouth and parts of Devon. However, patience is required: recent data reveals that the South West experiences a slightly higher rate of property fall-throughs (around 65%) compared to the national average, as chains take a bit longer to crystallise under tight lending conditions. What Does the 3.75% Rate Hold Mean for Your Pocket? A rate freeze doesn't mean mortgage rates are completely frozen. In fact, fixed-rate mortgages are largely influenced by "swap rates" (the wholesale cost of borrowing between banks based on future economic forecasts). Because inflation has shown signs of stabilising at 2.8%, swap markets have calmed. We are currently seeing a gentle, steady reduction in fixed-rate deals rather than dramatic drops. The average two-year fixed rate has gently nudged down to around 5.07% from the peaks of last month. Lenders are hungry for business, giving rise to quiet competition, but nobody expects a return to the rock-bottom rates of the last decade. Here is how the current market translates to your specific goals: First-Time Buyers The combination of softer asking prices and a surge in property choice means you have more leverage than first-time buyers have enjoyed in years. Sellers are increasingly treating their asking prices as an "aspirational starting point" rather than a firm baseline. If you have your deposit ready, you have a brilliant window to negotiate. Existing Homeowners Looking to Move If you are upsizing or downsizing within the South West, the key to success right now is pricing realism. If you price your current home competitively to secure a swift sale, you will be in a prime position to negotiate a great discount on your onward purchase. Those Reaching the End of a Fixed Rate If your current mortgage deal expires in the next six months, the worst thing you can do is wait on the sidelines hoping for a massive interest rate cut that may not materialise. Forecasters suggest the base rate will likely remain steady for the near future, with any potential cuts pushed well into next year. Securing a rate early is a smart way to lock in certainty. Take Your Next Step with Confidence Whether you are trying to map out a first-time purchase in Somerset, remortgage a family home in Bristol, or navigate a chain down in Devon, local expertise matters more than ever when the economic tides are shifting. Regardless of your current situation, please get in contact with Russell Green; he will be delighted to help you. How to Contact Us Russell Green will personally deal with your enquiry. T el 01934 442023 Email russell@westonmortgagesonline.com Complete a form via our website www.westonmortgagesonline.com 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 £ 290 to £490, and this will be discussed and agreed with you at the earliest opportunity. Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

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