Blog

5th January 2026

As we leave the year behind and move into 2026, the mortgage market stands at an important turning point. After two years of shifting interest rates, fluctuating buyer sentiment and ongoing cost pressures, many households are now prioritising stability. The year ahead is set to bring fresh opportunities, along with a few uncertainties, and understanding the direction of travel will be crucial for anyone planning to buy, move or remortgage.

Last year saw a gradual return of confidence as fixed rates began to ease and lenders reassessed their appetite for new business. Although affordability remained challenging for many, the sense of unpredictability that defined earlier years softened. As we begin 2026, the market feels somewhat more balanced. Borrowers are more informed and cautious; lenders seem focused on sustainable lending decisions and the wider economic environment is showing signs of steadying.

The interest rate landscape

With the December base rate decision behind us, attention now shifts to the path the Bank of England (BoE) will choose in the first half of the year. The Bank of England has indicated that, if inflation continues to move in the right direction, further gradual cuts to Bank Rate could follow. For homeowners approaching the end of their current deal, this may present new opportunities to secure more comfortable monthly payments.

The first quarter will be watched closely. If inflation continues to ease, lenders could become more competitive, responding with pricing that encourages movement in both the purchase and remortgage markets. On the contrary, if economic pressures do persist, rates may change more slowly, prompting borrowers to continue prioritising long-term stability and dependable payment planning.

Whatever happens, it is clear that rate movements will remain a critical factor in shaping borrower behaviour. Many will likely use the start of the year to assess whether to act quickly or hold steady, depending on their financial goals.

Buyer and seller behaviour in a changing market

For buyers, particularly first-time buyers, 2026 may offer clearer conditions. The combination of gradually easing rates and a levelling off in house price growth could lead to restored confidence. Across much of 2025 we saw a trend of buyers changing their expectations. In 2026, the focus is likely to shift towards maintainable affordability and long-term financial resilience rather than stretching (albeit often involuntarily) to the limit.

Sellers may also feel the effects of a more settled market. Where last year was marked by careful negotiation and a measured pace of activity, the coming year may bring a gentle uplift in momentum. Well-presented and realistically priced homes are expected to continue to attract strong interest, while premium properties may continue to require patience as buyers at this end of the market weigh up future ownership costs in light of the recent Autumn Budget.

The role of remortgaging refinancing

A significant number of fixed-rate deals are due to expire in 2026. For many households, this will be a critical moment. Those who secured higher rates in 2024 or early 2025 may find that the new year offers more favourable terms. This could stimulate a rise in remortgaging activity as borrowers look to reduce monthly outgoings or adjust the type of mortgage they hold.

Others may use remortgaging as a chance to restructure borrowing, consolidate commitments or release equity for major life events. These decisions often benefit from careful timing. Early conversations with an adviser can help borrowers to prepare before renewal, avoiding last-minute choices and giving them time to explore the full range of options.

A year for planning ahead

The start of a new year is always a natural moment to review your financial goals. Whether you are thinking about purchasing your first home, moving to a new location, renewing your mortgage or making long-term plans for your property, 2026 offers a valuable opportunity to take stock.

Speaking with a qualified adviser can help bring clarity to what might lie ahead. Understanding how potential rate changes could affect your monthly budget, knowing when to begin the remortgage process and exploring alternative mortgage products can make a meaningful difference over the coming years.

An adviser is here to support you through every stage of your property journey. If you are planning any changes to your mortgage of property plans, early advice can give you the confidence to move forward with certainty.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Approved by The Openwork Partnership on 05/01/2026.

1st October 2025

What might change, and what to do now

The Chancellor will deliver the Autumn Budget on Wednesday 26 November 2025. This is expected to be the government’s first major fiscal event focused on “an economy not working well enough for working people”. With borrowing pressures still high, you should be prepared for targeted tax rises and a few surprises.

Big-ticket predictions we’re watching

1) Tax rises to tackle the deficit

• Stealth over headline hikes

Independent analysis points toward ‘stealth’ rather than headline increases with freezes to thresholds, targeted levies, and possible changes to wealth or property taxes.

Policy watchers expect more “base broadening” rather than rate hikes in Income Tax, NI or VAT.

• Rental income & mobility taxes

Rumours include National Insurance on rental income and even an exit tax for those moving wealth offshore. No policy yet, but these ideas have been floated by think tanks and economists to raise revenue without headline rate changes.

What this could mean for you:

If you’re relying on property or investment income, you could face higher effective taxation. You should consider reviewing wrappers (ISAs, pensions) and spousal transfers to mitigate exposure.

2) Capital Gains Tax (CGT) & Inheritance Tax (IHT)

• CGT tightening

The 2024–25 Budget already cut the annual CGT exemption to £3,000, and commentators expect further alignment between CGT and Income Tax rates.

• IHT pressure points

Inheritance Tax is also in focus. Analysts predict the freeze on thresholds will continue, dragging more estates into scope.

There are also many rumours about ending the long-standing exemption of unused pension funds. On a person’s death these would become part of the taxable estate for IHT purposes.

What this could mean for you:

Estate planning will climb the agenda. You might benefit from revisiting gifting strategies, trusts and life cover to fund future IHT liabilities.

3) Property-tax shake-up (Stamp Duty & Council Tax)

• Stamp Duty reform

Persistent speculation suggests a reform of Stamp Duty Land Tax (SDLT) potentially replacing it with a proportional property tax, or re-banding council tax.

With property transactions still subdued, the Treasury may opt for changes to stimulate movement while generating steady revenue.

What this could mean for you:

High-value homeowners and landlords could see higher recurring costs, while first-time buyers or downsizers may benefit. If you’re looking at a completion date that straddles Budget day, speak to us for more information.

4) ISAs & Pensions – nudging money into markets

• Investment emphasis

The government has consulted on reforms to encourage savers to invest more productively. A “cash cap” within the £20,000 ISA allowance was explored earlier in the year but paused following sector feedback.

A broader ISA simplification is expected, with incentives for investment ISAs and possible consolidation of product types.

• Allowance reviews

For pensions, some analysts believe changes to tax-free cash or further allowance reviews could be on the horizon as part of deficit management.

What this could mean for you:

You may need to revisit portfolio liquidity with us to ensure you keep accessible emergency savings while maximising long-term growth potential.

5) One surprise to watch

Each Budget brings an unexpected twist. This year’s “rabbit out of the hat” may be a behavioural tax, for example, an online gambling levy or luxury-property charge.

While such moves have limited fiscal impact, they appeal politically and can shift sentiment in certain sectors.

Approved by The Openwork Partnership 01/10/2025

30th September 2025

Why the Autumn Budget matters to you, your money and your future

Budgets often bring changes to taxes, benefits and financial rules that affect everyday savers, homeowners, investors and business owners. The UK government will deliver its Autumn Budget on 26th November 2025, and speculation is strong this year. Getting advice now could help you protect your money and make informed decisions.

What are people expecting?

Some of the major areas where commentators are speculating changes include:

How could our advice help you navigate these changes?

There are some real risks if you wait or act on rumours alone. We can help you:

1. Meet deadlines or allowances: Many tax allowances (ISA, CGT exemptions, pension annual allowances) are fixed and once used or expired you can’t get them back. If you don’t know what’s changing and when, you could lose out.
2. Plan your actions: For example, selling assets now vs waiting until after the Budget could mean paying more tax. Or moving money into or out of a tax wrapper without knowing whether the relief will be kept, reduced or removed means you could miss out down the line.
3. Make use of allowances: You may be able to structure gifts, inheritance planning, pension contributions or other forms of tax planning better, but only with knowledge and foresight.
4. Anticipate changes: If you own property, assets or rental income, changes like national insurance on rental income or taxing wealth or assets currently exempt could catch people by surprise.
5. Take your time: Rumours and speculation can provoke rushed decisions (for example selling off investments, withdrawing pension lump sums) which may not align with long-term goals.

What financial advice can do for you now

Engaging with a trusted financial adviser now, ahead of 26 November can make a real difference:

• Tailored review of your financial picture: We can look at your income, savings, property, investments, tax allowances and liabilities. We can model scenarios against possible changes to see what’s likely to hurt or help you most.
• Action plan for tax efficiency: Whether that means making use of current allowances (ISAs, pensions), shifting assets into better-taxed wrappers, or accelerating transactions that make sense.
• Inheritance & wealth planning: If wealth taxes or inheritance tax rules change, preparing earlier (gifts, trusts, estate plans) can reduce the shock and cost.
• Mitigating downside risk: You might not be able to stop a tax increase, but you can reduce exposure. For example, rebalancing investments, delaying or bringing forward certain transactions, or adjusting your business structure if you run your own business.
• Clarity and confidence: Having a professional explain what might happen helps you make decisions calmly rather than reacting under pressure.

Why working with us makes a difference

We believe good advice now is not just nice to have, it’s essential. We’re here to help you:

• Understand the rumours and speculation for what they are, not let them panic you.
• Model likely Budget outcomes, helping you see what works best in your situation.
• Support you to act in a timely way so you can retain as much advantage as possible.
• Keep you updated, clear and confident every step of the way.

Our optimism for the future

Even though Budget changes can feel uncertain or stressful, they also carry opportunity. Smart planning now can protect more of what you’ve earned, help you pass on more to those you care about, and set up your finances to thrive in whatever new rules come in.

If you’d like us to run you through what the latest speculations could mean for you, let’s schedule a call. We’ll work together to map out a plan before the Budget so that you’re ready whatever the outcome.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Approved by the Openwork Partnership 30/09/2025

16th June 2025

Living in interesting times: how advice can help

We’re living in unpredictable times; from rising living costs and market fluctuations to fast-moving changes in jobs, tech, and even family structures. For many people, the old financial playbook no longer applies.

In these moments, advice isn’t about chasing the lowest cost — it’s about making the right choices for you. Ones that reflect your values, your needs, and the realities you’re living with right now.

Whether you’re dealing with a sudden loss of income, stepping into a caring role, or struggling to keep up with digital changes, advice can help you:

• Make informed decisions when the pressure is high
• Get clarity on what to prioritise first
• Avoid costly mistakes or unnecessary risks
• Adapt your plans without starting from scratch

Advisers aren’t just there to sell to you once and leave you high and dry, instead they can spot when you might need extra support and respond with care, not judgment.

Best laid plans

You can do everything right, save regularly, plan for the future, stay on top of bills, and still hit a point where things change beyond your control. That doesn’t mean you’ve failed. It means you’re human.

Having a financial adviser means you’ve got someone to help you to get back on track. Someone who sees the big picture when you can’t. Someone who can offer new ideas when your confidence is shaken. Someone who can adjust your plan, so it still works, even if life looks different. 

And it’s not just about fixing problems. It’s about creating stability, building confidence, and giving you the tools to move forward with clarity. Because the best-laid plans don’t fall apart when life gets messy; they bend, adapt, and hold strong with the right support.

If you’re facing a change, a challenge, or just a feeling that your financial plans need a second look, don’t do it alone. Speak to someone who’ll listen, guide, and support you every step of the way.

Approved by The Openwork Partnership 16/06/2025

13th June 2025

Seeking advice on how to look after your money may not be as fun as the immediate thrill of spending it, but it could be a rewarding decision in the long run.

Investing can be a daunting task, especially if you’re not sure where to start, that’s where advice can be handy. A financial adviser can help you understand your financial situation, develop an investment plan, and choose the right investments for your needs to meet your goals.

Value of investment advice 

Assess where to invest – Getting advice from a financial adviser can expose you to a wider range of choices when it comes to deciding where to invest. They have the knowledge and expertise on how products work in different markets and can identify any possible downsides as well as potential benefits.

Asset allocation – It’s important to invest in a mix of investments to reduce risk. A financial adviser can help determine your objectives for the investment as well as your attitude to risk before making any recommendations. This is to ensure you are taking the right level of risk and are in a good position to achieve the returns you want.

Portfolio rebalancing – To maintain a healthy mix of investments, you need to rebalance your portfolio. Essentially this is adjusting the weightings of different asset classes in an investment portfolio. A financial adviser will review the portfolio and rebalance where needed to ensure that you don’t take too much risk.

Help achieve your goals – Even a seemingly straightforward financial goal can involve numerous decisions and a range of different products and providers. A financial adviser can help assess what is realistically possible and create a tailored financial plan to ensure you achieve your investment goals.

Key benefits of investing

It’s important to think carefully about putting some of your income aside for the future. For example, you may have more money to invest once your children have moved out, or your mortgage repayments may have reduced. So, what are the benefits to investing?

Long-term returns

Investing offers the potential opportunity for long-term returns. The money you invest has the potential to grow significantly over time.

Building wealth

Investing money in a variety of assets can be a great way to potentially build your wealth. The earlier you start and the more you’re able to save, the better shape your financial assets are likely to be in when you need to draw on them.

Planning for retirement

No matter your age, it’s important to start saving for retirement as early as possible. Investing can help to grow your savings to ensure you have the money to get through your retirement years comfortably.

Meeting financial goals

Another benefit to investing is the ability to achieve your personal and financial goals. Whether it’s saving for university, buying your dream home or simply building savings for the future, investing can grow your money giving you financial freedom to achieve your goals.

We’re here to help

We can go through the options available to you and discuss the various factors that could affect your investment and provide a personalised, tailored investment plan with the right products for you. Get in touch today.

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

Approved by The Openwork Partnership on 12/06/2025.

19th March 2025

2025/26 Tax Planning is Underway

Every year brings new possibilities, and as we approach the start of the 2025/26 tax
year, it’s the perfect time to maximise your financial options and opportunities. Whether
you’re an investor or a saver, there are many tax benefits to take advantage of, and our
team of experts is on hand to provide you with the information you need to make the
best decisions for your finances.

What should my priorities be?

In 2025/2026, you can contribute a maximum of £20,000 across all your ISAs. This
allowance applies to Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs, and Innovative
Finance ISAs. By investing in these, you won’t pay income tax on the returns.
Remember, you cannot roll over unused allowances into the next tax year.

Quick wins

There are cash efficiencies available to you if you know where to look. Consider the
Lifetime Cash ISA as an example. It’s an excellent way to maximise allowances and
bonuses and can be opened by anyone under the age of 40. By contributing up to
£4,000 each tax year, the government provides savers with a 25% bonus, worth £1,000
annually.

A Lifetime ISA can only be used for saving towards either your first home (costing up to
£450,000) or for retirement. If you withdraw some or all the cash before the age of 60 or
don’t use it for a first home or retirement, you will incur a 25% penalty on the withdrawal
amount, effectively losing the government bonus.

Utilise your pension

Are you a higher-rate or additional-rate taxpayer? If so, you can claim the full amount of
pension tax relief, which could be an additional 20% or 25%.

It’s in your hands

Whatever unfolds in the next tax year, remember that your financial decisions are in
your hands – and ours. For tailored support in helping you reach your financial goals,
please contact a financial adviser.

An ISA is a medium- to long-term investment that aims to increase the value of
your invested money for growth, income, or both.

The value of your investments and any income from them can fall as well as rise.
You may not get back the amount you invested.

HM Revenue and Customs practices and the laws relating to taxation are complex
and subject to individual circumstances and changes that cannot be foreseen.

Approved by The Openwork Partnership on 19/03/2025.

27th March 2025

The Spring Statement is an opportunity for the Chancellor Rachel Reeves to update Parliament and the country on the state of the UK finances and to announce any changes to government spending. It is positioned as a fiscal update as it follows on from the main budget which took place last autumn.

Presented in the House of Commons, this Spring Statement focused mainly on cuts to welfare and government budgets, as well as an increase in defence spending as the Chancellor responds to both economic pressures and escalating tensions at home and abroad.

But what were the headlines for mortgages and around the government’s plans to build 1.5 million homes? Let’s take a look.

Homebuilding

Alongside every Spring Statement, the Office for Budget Responsibility (OBR) will review the government’s plans and provide a forecast. In its forecast for this Spring Statement, the OBR has concluded that the planning reform the Government has put in place will lead to a 40-year high for housebuilding – reaching 305,000 houses per year.

As the Chancellor explained, this will help them build 1.5 million homes during the course of this parliament, putting them in “touching distance” of their headline target. If this is achieved, this would clearly be fantastic news. However, it is a big if, given the current economic climate for both buyers and developers, as well as ongoing skills gaps in the construction sector.

Prior to the Spring Statement though, the Chancellor did announce £2bn of extra funding to help kickstart building projects and deliver 18,000 affordable and social homes – which is a good start. And to answer those skills gaps in construction, she announced £600m towards training to develop the next generation of construction workers.

So, while no earth-shattering announcements in the statement itself, there were updates on the Government’s plans to increase the number of homes and a clear ambition to reach its target – good news for hopeful buyers.

Mortgages

By comparison, any news on support for those looking to purchase a property or thinking about taking out a mortgage did not come in the Spring Statement. Nor was there any plans to prevent the change to stamp duty thresholds or at least extend the current relief, as some would have perhaps hoped for.

While no news to speak of in the Spring Statement, the FCA has recently announced it is planning to review its responsible lending and advice rules for mortgages later this year, as part of efforts to support homeownership and make it easier to remortgage. In June, they will discuss alternative affordability testing and production innovation, which will be welcomed by many.

Although mortgage lenders would have been hoping for more government incentives and support for buyers, they do still remain active in the market and continue to innovate themselves – whether that’s through new products or in the criteria that they lend against. Across different areas of the market, such as in residential and buy-to-let, we have been seeing some lenders announcing mortgage rate reductions too.

Speaking of new products, we have seen lenders working with developers to launch their own equity loan schemes for new build properties – providing a similar solution to the Government’s previous Help to Buy scheme. In the latest example announced by one lender, the buyer brings a minimum 5% deposit and takes out an 80% LTV mortgage. The lender will then provide a 15% interest free loan, with the help of the house builder.

Navigating the housing market

While the Spring Statement may not have offered the headlines that many potential buyers would have hoped for, it does potentially offer some positive progress towards increasing the number of available houses. The hope is that as supply increases, so does availability and some of the affordability pressures felt by some potential buyers will begin to ease.

Add to this innovation from mortgage lenders, along with some potential reform from the regulator that governs them, we could be set to see opportunities open up for those looking to buy or re-mortgage.

At any time, navigating mortgages and the wider housing market can be a tough task. Whether you’re buying or remortgaging, a great place to start to talk to us. Not only can we answer all your questions and queries, we have access to a wide range of mortgage lenders and can help you explore a full range of options – including ones not available to your bank or to members of the public.

To book your appointment, please call us on 01205 311981.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR
MORTGAGE.

Most Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 27/03/25

24th March 2025

What schemes are available?

Any first-time buyer trying to save up for a deposit to purchase their first home may feel daunted by how expensive the housing market is.

There is no doubt that it is much more difficult to get your foot onto the property ladder than ever before. In 2023, House Buyer Bureau reported that house prices today are 8.8 times people’s average earnings, which – it says – has more than doubled since the 1970s.

And in its Home Affordability report, Skipton Building Society found that of the top 25% of earners, just 44% of first-time buyer households could afford to buy in their local area.

So what can first-time buyers do to maximize their savings and earnings, to buy a property to call their own?

Help is at hand

Successive governments have recognised the need to provide help for first-time buyers in the form of different schemes and savings policies to give them the best chance of owning their own homes.

Introduced by the UK government in 2017, the Lifetime ISA allows people to save £4,000 each year towards their first home, with a tax-free government bonus of 25% capped at £1,000 per year. The Lifetime ISA is now offered by a range of different providers, banks and building societies.

Alongside help to save for your deposit, schemes also exist to help first-time buyers purchase their first home too. Perhaps the most high-profile example of this was Help to Buy, where the government would lend a proportion of the cost of a new-build home as an ‘equity loan’, which was interest-free for five years. This made it easier for first-time buyers to buy with a smaller deposit.

After helping more than 300,000 first-time buyers get onto the property ladder, Help to Buy closed in England and Scotland. However, a version of the scheme is still available in Wales.

What options are available now?

In the absence of Help to Buy, first-time buyers can access the Shared Ownership scheme. This is a government-backed scheme where people buy a home by purchasing a share of the property and then pay rent on the rest. As your financial situation changes, you then have the opportunity to buy a larger share of the property through something called “staircasing”, which reduces the amount of rent paid.

Other alternatives include the First Homes scheme. This allows first-time buyers who are purchasing a new build or a home previously bought through the scheme to buy property at 30% to 50% less than its market value, as long as they earn under a certain threshold and meet the rest of the criteria. First-time buyers can also investigate the Deposit Unlock scheme, which is a collaboration between housebuilders and select lenders where first-time buyers can purchase a new build home with a 5% deposit.

Furthermore, there’s a government-backed mortgage guarantee scheme which also allows buyers to use a deposit of just 5%. It provides lenders with the option to buy a guarantee – almost like an insurance policy – to offer 95% loan-to-value (LTV) mortgages to creditworthy customers.*

Seeking advice can make a difference

While it can be challenging for first-time buyers to make that step onto the property ladder, options and support are available. If you’re looking buy your first home and you’re not quite sure which scheme is best or if you’re even eligible, a good place to start is by speaking with a mortgage adviser.

As well as helping you find the right mortgage deal for your individual circumstances, as expert mortgage advisers, we can suggest other ways to make your money go further when buying your first home.

To book your appointment with us, please call us on 01205 311981 or email tnsfinancial@theopenworkpartnership.com

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.

Approved by The Openwork Partnership on 24/03/25.

19th March 2025

Securing your family’s financial future is a vital aspect of long-term planning. To help you navigate the complexities of inheritance and estate planning, we’ve prepared a guide outlining key considerations. From understanding your future financial needs to exploring options like trusts and charitable giving, this guide will help you take the necessary steps to protect and provide for your loved ones.

Making a start

The financial world can seem complex, particularly when it comes to areas like inheritance and estate planning. That’s where our trusted and skilled team of advisers can help, guiding you through the process and giving you peace of mind.

Get advice as early as possible 

If retirement is approaching, or if you’ve already stopped working, you may be considering the best way to ensure your financial legacy provides a strong foundation for your loved ones. Whether you need advice on making your will as tax-efficient as possible or reducing your Inheritance Tax (IHT) liability, our advisers can offer guidance on the best path for you and your finances.

Mapping your future 

Knowing how much money you will need in the future is the first step in planning your family’s financial future. Financial requirements in retirement can vary, so it’s crucial that you’re aware of your future needs before considering what happens next.

Gifting gifts 

There are a range of options available for passing on wealth to your family during your lifetime. Our advisers can provide up-to-date information in an area where tax laws frequently change. There are various gift allowances available, but it can be a complex area, and this is where our expertise comes in. Whether it’s a lifetime gift or a potentially exempt transfer (PET) of a larger gift, we can offer the advice you need to make sound financial decisions for you and your loved ones.

Trusting trusts

Trusts are a great way to maintain control of your assets and a flexible way to manage control while maximising tax efficiency. This can be a complex area, but with years of experience, our team of skilled advisers will provide the information you need to choose the right option for you.

Charitable legacies 

Gifts to charities and organisations like political parties are also tax-free and can offer a range of benefits. With careful financial planning, they can ensure the amount you leave to your family remains intact while also delivering IHT advantages.

Don’t take risks with your family’s future

Getting the right advice and guidance early is one way to best look after your family’s future. Contact your financial adviser for tailored support.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

Trusts are not regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership 19/03/2025

14th February 2025

What does an interest rate mean for mortgages?

Every six weeks or so, all eyes are on the Bank of England and its Monetary Policy Committee (MPC) – the group that decides whether interest rates will be increased, held or cut. How they choose to act has an impact on how much it costs banks to borrow money and what rates they can offer to savers and borrowers.

With all this in mind, what does an interest rate cut actually mean for mortgage holders and for those weighing up their options as they come to buy or move?

Will my mortgage now be cheaper?

For those borrowers that currently have a tracker mortgage – one where the rate closely follows the bank base rate (BBR) – they will see their monthly borrowing costs reduce almost immediately. This is because you will be paying less interest on your mortgage.

It is a similar scenario for those that are currently on a lender’s standard variable rate (SVR), which is a changeable rate set by the lender that typically comes into effect after a fixed rate period ends. These too are likely to be reduced following a cut, although it is important to note that lenders are not obliged to do so.

These types of mortgages only account for less than 1.5 million of the total outstanding mortgages (or 17%)1, meaning that for the majority of mortgage holders, they won’t feel the benefit just yet.

What about my fixed rate mortgage?

The main reason is that the majority of mortgages in the UK are taken on a fixed-rate basis. This means that your monthly payments are fixed for set a period – typically, two, five or ten years. Whether interest rates rise or fall, the amount you will pay stays the same.

The only time this will change is when you come to change to a new deal, or do you nothing when your fixed rate ends and you to move to your lender’s SVR.

What does it mean for new mortgages?

While a change to the bank base rate doesn’t directly impact mortgage pricing, the overall outlook for interest rates does influence the mortgage rates offered by lenders.

Without getting too technical, this is because many lenders will purchase tranches of money to lend to customers, in addition to lending their own if they have the facility. The amount they pay is set using something called swap rates, which are ever-changing and heavily influenced by economic conditions, market expectations and general sentiment.

If swap rates decrease, then so does the cost for lenders to borrow money, allowing them to pass on savings to their customers and stay competitive. Often, but not always, the indication that interest rates are set to be cut – along with greater certainty around the future path of interest rates – can encourage swap rates to fall and reduce the borrowing costs for lenders and new mortgage holders.

Which option is right for me?

There’s no question that the decision made by the MPC plays a role in the mortgage process, whether it’s changing the amount you pay on a tracker or SVR, or what rate a lender may be able to offer you on a new mortgage.

Whether you’re looking to buy, move or re-mortgage, it can be useful to know what influences and mortgage pricing to make an informed choice. It’s also valuable to know what different options are available to you and how a change in interest rates – either positively or negatively – can change your monthly outgoings.

Working hand-in-hand with you, we will assess all your options and help you make the right choice for you and your individual circumstances.

To book your appointment, please call us on 01205 311981.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 14/02/2025.

18th March 2025

Retirement Planning 

Planning for retirement might seem daunting, but it doesn’t have to be. To help you navigate this important process, we’ve outlined a simple 5-step guide. This guide will walk you through everything from understanding how much you’ll need to assessing your income options and ultimately drawing up a comprehensive plan for your future.

Step 1: Don’t Put It Off

Retirement can often seem a long way off, but the choices you make while you’re still working can have an enormous impact on the kind of life you enjoy when you stop. Our trusted and highly skilled team of advisers are on hand to give you the best possible advice, making a potentially stressful process easier.

Step 2: Be realistic about how much you will need

At a time when final salary pension schemes are rare, the chances are you’ll have to get accustomed to a different pattern of income and expenditure in retirement. That can be a daunting prospect, but planning ahead can help make a potentially bumpy path far smoother. Splitting your expenditure into two distinct categories – essential spending and discretionary spending – means you can work out a plan that best suits your finances. Once you know how much you’re likely to spend in retirement, you can plan accordingly.

Step 3: How much will you have?

It’s a good idea to work out how much of a retirement pot you’re likely to have well before you finish your working life, and there are a number of ways to make that as simple as possible.

Firstly, you can get a State Pension forecast. This will give you an estimate of how much of a state pension you will receive, based on your National Insurance contributions. You can do this by visiting GOV.UK.

If you have a defined benefit (or ‘final salary’) pension, or a defined contribution (or ‘money purchase’) pension pot, you can ask your pension provider to give you a retirement quote or information on your retirement options. You can also boost that final pension pot by tallying up your savings and investments.

And finally, it’s always a good idea to try and trace any lost pensions through the Government’s free Pension Tracing Service site.

Step 4: Assess your income options

Depending on the type of pension you have, you may need to decide how you take your money in retirement.

If you have a defined benefit pension, for example, you will often be paid a guaranteed income from your normal retirement age. If you have a defined contribution pension, then you’ll have a pot of money which you can begin drawing down from the age of 55*.

You might also have other sources of income that you can draw on in retirement. This might be derived from property, savings, or part-time work.

Step 5: Draw up a plan or contact your financial adviser

Once you have all the information at your fingertips, you can begin planning, and for more tailored support, please reach out to a financial adviser.

* Please note, from 2028, this will change to age 57.

The value of investments and any income from them can fall as well as rise, and you may not get back the original amount invested.

Approved by The Openwork Partnership 18/03/2025.