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Are you on the mortgage deal that fits your current circumstances? In today’s ever-changing financial landscape, it’s easy for mortgage deals to become outdated before you know it, and increasingly important to be aware of what’s out there that could be of interest to you.

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We’re here to support you for every step of the way, not only from getting your first mortgage, through to supporting you when it comes to remortgaging, and keeping you and your family protected.

Whether interest rates are climbing or falling, or new mortgage products are becoming available, the mortgage market is constantly shifting. For many homeowners, this means the deal you originally signed up for may not always be the most suitable one for your circumstances at this moment in time.

It’s therefore always worth getting in touch with us should your situation change and we can take a look at the options available to you.

Why It’s Important to Review Your Mortgage Deal Regularly

Unlike some other financial products, mortgage deals have a set period that they run for – whether it’s a variable rate or tracker mortgage that is renewed every few years, or a fixed rate mortgage that runs for two, five or ten years, for example.

After these fixed periods expire, lenders may automatically move you onto your lender’s standard variable rate (SVR). The SVR is usually higher than the rates on fixed, tracker, or discount mortgage products, potentially leading to higher monthly repayments. Regularly reviewing your mortgage allows you to avoid being caught on the SVR and instead, ensures you’re always on a competitive deal.

Moreover, many mortgage products offer introductory rates that can seem attractive but might not remain so over time. By regularly comparing what’s on the market, you can catch these shifts early and lock in a better deal if one becomes available.

Check out the Latest Mortgage Deals We’ve made it easier than ever to see what’s available with our easy-to-use mortgage comparison tool. Simply input your information, and you’ll be able to compare a range of competitive mortgage deals from leading providers. But remember, a tool can only provide the numbers—it’s the conversation with an adviser that can make those numbers work for you.

Don’t Wait Until Your Current Deal Ends

If you’re already on a mortgage, checking your options isn’t just for those whose deals are about to end. Sometimes, the benefits of switching can outweigh the costs of any early repayment charges. It’s a chance to take control of your finances, potentially lower your monthly payments, or even reduce the overall term of your mortgage.

So, it doesn’t hurt to see what deals are out there, and take a look at the tool here to explore the current mortgage offers. If you see something of interest, please don’t hesitate to get in touch and let us help you to make informed choices that reflect your own financial goals and align with your current circumstances – after all, we’re in a fast-moving marketplace and life changes quickly.

We’ll be able to talk you through your existing deal and examine if there’s anything out there that can provide a greater fit with your current circumstances, and provide mortgage guidance for the future, matched to your needs.

All the information in this article is correct as of the publish date 28^th November 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

The mortgage market continues to evolve, with trends in interest rates, housing demand, and lending policies shaping the future of home financing. As 2024 draws to a close, here are the key trends and updates driving the mortgage industry and what they could mean for borrowers in 2025.

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Interest Rates: A Mixed Bag for Borrowers

Interest rates in 2024 have hovered at higher levels than the historic lows of recent years, with the average 30-year fixed-rate mortgage remaining in the 6–7% range. While this has dampened affordability for many homebuyers, recent signals from the Federal Reserve suggest that rate hikes may slow or pause altogether as inflation stabilizes.

For borrowers, this means the potential for a more predictable interest rate environment in 2025. Financial advisors are recommending that buyers lock in rates when favorable, as uncertainty remains about when rates might decrease substantially.

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First-Time Buyers Face Challenges

First-time homebuyers are finding it tougher to break into the housing market. Rising home prices, coupled with higher borrowing costs, have made affordability a top concern. Many potential buyers are turning to alternative strategies, such as:

• Exploring Smaller Markets: With urban areas becoming increasingly expensive, buyers are seeking properties in suburban or rural locations where homes are more affordable.
• Adjusting Loan Options: Many are considering FHA loans or adjustable-rate mortgages (ARMs) to reduce initial costs.
• Increasing Down Payments: Buyers with larger savings are leveraging higher down payments to reduce monthly payments.

First-time buyers should also watch for potential policy changes or incentives in 2025, as affordability becomes a key focus for housing policymakers.

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Inventory Shortages Persist

The inventory shortage remains one of the biggest hurdles in the housing market. With fewer homes being built and existing homeowners reluctant to sell, the supply-demand imbalance is unlikely to resolve quickly. This trend has created intense competition in popular markets, leading to bidding wars and elevated prices.

Buyers should act decisively when finding a home that fits their needs. Real estate agents advise having pre-approval letters ready and considering contingencies to stand out in competitive bids.

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Refinancing Opportunities Still Relevant

Despite the rise in interest rates, refinancing is still a worthwhile option for some homeowners. For those with higher-rate loans or who are seeking to consolidate debt, refinancing can provide financial relief. Cash-out refinancing is also being utilized by homeowners looking to fund renovations or cover significant expenses.

Experts caution, however, that refinancing may not always result in significant savings. Homeowners should assess their loan terms carefully and work with lenders to ensure refinancing aligns with their long-term financial goals.

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Looking Ahead to 2025

As we approach 2025, the mortgage market is expected to stabilize, albeit gradually. Key factors influencing the market in the new year include:

• Economic Conditions: The pace of economic growth and employment rates will directly impact housing demand.
• Federal Reserve Policy: Any changes to monetary policy will play a pivotal role in mortgage affordability.
• Housing Policy: Possible government interventions aimed at boosting affordable housing supply could open new opportunities for buyers.

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Final Thoughts

The mortgage market in late 2024 is a challenging landscape, but informed borrowers can still find opportunities to achieve their homeownership goals. Staying updated on trends and working closely with trusted mortgage advisors will remain critical as we transition into the new year.

Whether you’re a first-time buyer, a seasoned homeowner, or considering refinancing, preparation and education will be your best tools in navigating the changing market in 2025.