It’s been a busy year in the finance world! Have you been reading along? We’d thought we’d break down a few changes. Here’s an overview of the current trends in mortgages, protection, insurance, and later-life lending so far:
Mortgages
Firstly, we are seeing lots of changes in rates and deals. Mostly thanks to declining fixed rates. Two-year fixed mortgages are now at 5.12%, down from over 5.4% earlier this year. And, despite market hopes, the Bank of England has held the base rate at 4.25%, citing inflation still running 3.4%. However, we could be looking at positive changes here this month.
Earlier this year, we saw a rush of buying before the stamp duty changes in the first quarter of the year. There was a sharp rise, with first-time buyer completions increasing by 62%, and movers by 74%, as people rushed to beat the April tax tweaks. We also saw an increase in first-time buyers entering the market. Potentially encouraged by upcoming accountability reforms, including lenders considering rental payment histories in their affordability checks. Did you know about this one?
Finally, in our market outlook, average asking prices dipped 0.3% in June (most significant flat/SW fall), but are still marginally (0.8%) higher than a year ago.
Despite economic headwinds, analysts describe the market as stabilising, labelled a “gradual improvement” in affordability.
Protection & General Insurance
There are some interesting things happening with technological innovation in the insurance world – but the need for a trustworthy advisor remains. As mortgage landscapes shift, protection products (like home emergency cover, legal expense add-ons, and more bespoke or digital-first solutions) are adapting.
Later-Life Lending
Again, we are seeing market growth in equity release news. Lending rose to £665 m in the first quarter of 2025 (up from £622 m in the last quarter of 2024). Marking four straight quarters of growth. Rising house prices have made homeowners more inclined to tap equity. The average release rates are now between 5.7–7%. Doubling from 3.7% in 2021.
More and more, the industry calls for emphasis on regulation and transparency for responsible lending. Making sure clients always come first. No-negative-equity guarantees and clearer consumer guidance are top of the list for regulation. Meanwhile, emerging UK home equity line of credit (HELOC)-like products reflect a shift toward more flexible equity-access methods, influenced by US-style. Did you have more questions about this?
To finish up…
Professional advice remains crucial. Especially as we are seeing falling fixed rates, strong lending volumes, and easing affordability amid policy shifts in the mortgage world, plus tech-enhanced quoting, rising complexity in protection and insurance. Equally, the continued market growth, product innovation, and rate rises in equity call for expert help.
Do you need help getting started with any new products this month? Let’s have an honest conversation about you and your needs. We’ll update our file and address any new requirements you may have. Reply to this email or give us a call.
SPEAK TO AN ADVISER
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances. Equity Release: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.