Wondering how the housing market is holding up this summer? Here’s a quick-fire summary of the key mortgage and property trends, based on the latest figures from June and July 2025.
Mortgage Market Summary at a Glance
| Metric | June–July 2025 Status |
|---|---|
| Base rate | 4.25% (forecast to drop to ~3.75%) |
| Remortgaging volume | Highest since Oct 2022 |
| Mortgage approvals | Up ~64,000 per month |
| House price growth | 1–4% year-on-year forecast |
| Regional variation | North showing strength vs London lag |
| New affordability rules | +20% borrowing capacity |
| Affordability outlook | Improving rates and lending criteria |
What’s going on with the base rate?
The Bank of England’s base rate currently sits at 4.25%, following a recent cut. Financial markets are betting on two more rate drops before the end of the year, which could see it settle around 3.75%. This is welcome news for anyone on variable deals or planning to fix a mortgage soon.
Why is remortgaging surging?
Remortgaging hit its highest level since October 2022, as thousands of homeowners rushed to secure better deals before the market moves again. With rates falling and fixed deals looking more attractive, this trend could continue through autumn.
Are mortgage approvals on the rise?
Yes – we’ve seen around 64,000 mortgage approvals per month recently, showing that buyer confidence is returning. This uptick suggests more people are stepping off the sidelines and getting back into the market.
How are house prices performing?
After a rocky patch in 2023, house prices are back in positive territory, with forecasts suggesting 1% to 4% growth by year-end. That’s steady, not spectacular – but it points to stability, not a crash.
Which regions are seeing the most action?
Northern England and Scotland are leading the charge, with areas like the North West and Yorkshire seeing decent growth. In contrast, London and the South East are lagging behind, facing weaker demand and longer selling times.
What’s changed in affordability rules?
Big shifts here: lenders have loosened affordability checks, in some cases increasing the income multiples they’ll lend against and softening their stress test assumptions. The result? Buyers now have up to 20% more borrowing power in many cases.
Is buying a home more affordable now?
Thanks to falling mortgage rates and friendlier lending criteria, affordability is improving, especially for first-time buyers. It’s not easy yet, but things are definitely moving in the right direction.
Final Word
Whether you’re looking to buy, remortgage, or just stay informed, it’s a good time to keep an eye on the market. Interest rates are on the way down, borrowing power is up, and regional trends are offering opportunities – especially if you’re willing to look beyond the capital.
——–
Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
