According to Moneyfacts, the number of low-deposit mortgages available at 90% and 95% loan-to-value (LTV) has reached its highest level since 2008, with 1,287 products on offer at the time of writing.

The cost of moving home in England has jumped 10.9% over the past year, according to new research from estate agents Yopa.

The average mover now faces a total bill of £51,826, with a 15% mortgage deposit costing £43,585, making up the largest share. However, changes to Stamp Duty relief thresholds have also driven costs higher. One year ago, movers paid an average of £1,433 in Stamp Duty, but this rose to £2,028 before 1 April and now stands at £4,528, a 216% year-on-year increase.

UK housing costs reached a record £217bn in 2024, according to estate agent Savills. This is a £41.2bn rise over two years and accounts for 60% of the decade’s increase.

Buying a home is now significantly cheaper than renting across most of Great Britain, according to research from property website Zoopla. The average monthly mortgage payment for first-time buyers (FTBs)stands at £1,038, which is 20% lower than the average monthly rent of £1,248.

This analysis assumes buyers have a 20% deposit, which works out as £50,740 based on the typical FTB home priced at £253,700. In London, where affordability is stretched, deposits tend to be higher, averaging 30%.

The UK mortgage market bounced back strongly at the end of 2024, driven by first-time buyers and home movers, according to UK Finance.

First-time buyer mortgages rose 16.4% to 334,000 last year, while home movers increased by 14.7% to 288,000. Total home purchases reached 622,000, up 15.6% overall.

Lower mortgage rates boosted demand in 2024, especially in the fourth quarter, as buyers rushed to beat the changes to Stamp Duty rules this April. However, remortgage deals fell by 9% to 1.6 million, mainly due to fewer fixed-rate deals expiring. This is likely to change in 2025, with 1.8 million fixed-rate mortgages due to expire.

Two-year fixed mortgages could become cheaper than five-year deals in 2025

Fixer-uppers are the most popular type of home among buyers this year*.

Analysis has found that nearly half (46%) of fixer-upper homes on the market are under offer or have sold subject to contract. Meanwhile, 37% of period properties on the market have found a buyer and modern homes are the least popular, with only 27% under offer.

The UK economy may be slowly recovering but many Brits are still feeling the financial pressure, with one in 10 homeowners struggling to meet their monthly mortgage repayments. So, what should you do if you find yourself in this difficult situation?

In February, the Monetary Policy Committee (MPC) voted to reduce the Bank Rate to 4.5%. Despite this being the third reduction since August 2024, the MPC has still been cautiously restrictive to sustainably return inflation to its 2% target.

House prices returned to growth in 2024, as half of the UK’s housing stock increased in value by an average of £7,600.

Are you considering making mortgage overpayments?

Here’s what to consider…

UK mortgage rates in the spotlight as economic factors suggest rates could rise again.

The Office for National Statistics (ONS) reported UK house prices increased by an average of £10,000 in the year to October 2024. The report showed the value of a typical home to be an estimated £292,000, an annual increase of 3.4% compared to £282,000 recorded in October 2023.

Have first-time buyers left it too late to pay lower Stamp Duty? It would appear so.

Bank of England (BoE) Governor Andrew Bailey is confident inflation will fade in 2025, which could mean as many as four interest rate cuts over the year. Bailey told the Financial Times in December that despite recent higher points, he still expected inflation to return to the Bank’s 2.0% target, creating headroom for four 0.25% rate cuts throughout 2025.

Research indicates that homebuying affordability has slightly improved in relation to income.

House prices are expected to stay on a positive trajectory over the course of 2025

Last October, mortgage approvals exceeded expectations and reached the highest level since August 2022.

 Liz Truss’ ‘mini budget’ in September 2022 caused mortgage approvals to plummet. Since then, the housing and mortgage markets have been slowly recovering, with the Bank of England tentatively reducing interest rates in recent months.

2024 was a significant year for the UK property market; Labour’s landslide general election win ended 14 years of Conservative rule in Britain, plus the Bank of England reduced interest rates in August after being held at 5.25% for a year. Here’s a roundup of the housing and mortgage markets at the end of 2024.

and a happy new year