Welcome to our monthly roundup. Firstly, with news of tariffs causing major selloffs on the global stock markets, many central banks had started to price in a recession in their forecast, but large financial institutions are remaining very wary and cautious of taking drastic action too soon, given how changeable the situation has been.

We have already seen a retraction on a number of tariffs that were originally introduced and for the UK there seems to be a growing likelihood of a UK-US trade deal which would help to alleviate any damaging trade barriers; and with the UK keeping access open to its trading partners around the globe, it could favour UK plc. So how does that economic backdrop impact the mortgage market?

Sub-4% Mortgage Deals on the Rise: What It Means for Homebuyers

At Grange Mortgages, we’re always keeping a close eye on the mortgage market to help you make the best decisions. The good news? We’re now seeing a growing number of mortgage deals available at rates below 4% — the lowest we’ve seen in quite some time.

According to Which?, sub-4% mortgage rates are making a comeback as lenders compete more aggressively for business. This resurgence in affordable mortgage deals offers homeowners and first-time buyers an opportunity to secure lower monthly repayments, especially compared to the higher rates seen throughout 2023 and early 2024.

MoneySavingExpert also highlights that rates have fallen sharply in recent months. Five-year fixed rates below 4% are becoming increasingly common, and some two-year fixes are also dipping under that threshold. It’s a strong signal that lender confidence is returning, fuelled by expectations that the Bank of England base rate may have peaked and could even start to fall later this year.

Should You Lock in Now?

With rates moving lower, a key question arises: should you fix now or wait for even better deals? While there’s always a chance rates could fall further, there’s also a risk that economic surprises could send them back up. If you value certainty and want to protect yourself against potential increases, now could be an excellent time to secure a competitive deal.

Remember, securing a mortgage offer doesn’t mean you have to complete immediately. Many lenders allow offers to remain valid for six months, giving you time to find the right property while locking in today’s low rates.

First-Time Buyers: A Record Number of Low-Deposit Options

It’s not just lower rates making the market more attractive — first-time buyers are also benefitting from a surge in low-deposit mortgage options. New figures from the BBC show that there are now more 5% and 10% deposit deals available than at any time since before the 2008 financial crisis.

For those able to put down a 5% deposit, there are currently 442 mortgage products to choose from — more than double the options available just two years ago. Similarly, buyers with a 10% deposit now have 845 products available. This “flourishing choice,” as Moneyfacts describes it, is a healthy step forward for aspiring homeowners who may have struggled to save large deposits amidst rising living costs.

Time to take action?

The combination of falling rates and more low-deposit options is creating one of the most favourable environments we’ve seen in years for homebuyers. However, the market remains competitive, and homes are still selling quickly, with Zoopla reporting that properties typically go under offer in just over a month.

If you’re thinking about buying your first home, remortgaging, or moving up the property ladder, now could be a great time to explore your options. At Grange Mortgages, we’re here to help you navigate these exciting changes and find the right deal for your needs.

Get in touch with us today to discuss your mortgage options and take advantage of this positive shift in the market.