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What to know about mortgage feesWith house prices stable or even falling in some areas, affordability is slowly improvin...
10/10/2026

What to know about mortgage fees
With house prices stable or even falling in some areas, affordability is slowly improving. According to recent data from Lloyds, the house price-to-income ratio fell from 7.6 last year to 7.3, its lowest since 2015. For first-time buyers, homes now cost less relative to earnings, falling from 6.1 to 5.9, also the lowest level since 2015.
With improved supply on the market, this could be the perfect time to buy your first house, but mortgage rates are moving up again, so understanding how to choose the right product is getting even more important. Most people look only at mortgage rates, but fees can make your mortgage much more expensive; this is not something to ignore.
Mortgage arrangement fees could be very high. Although fees are usually a fixed amount, ranging from zero to £1,999 (or more), but some products have a percentage of the loan, 2% or even 3%.
Usually, fee-free deals have higher mortgage rates and they don’t look attractive, but the total amount you pay to the bank will depend on the loan and the combination of the interest rate and the arrangement fee. It would be a good idea to calculate total costs during the initial fixed rate period and compare different combinations of rates and fees. The calculation could be more tricky if you are considering a variable rate, but ask your broker to help, this can save you several thousand.
Paying the mortgage fee upfront can take a lot of your savings when you struggle to save more for the deposit, but most banks will allow to add the fee to the loan. Certainly, you will pay interest on this amount, and you should take it into account when you calculate total costs.
Don’t forget about exit fees, which are called ERC (Early Repayment Charges) and can be 5% for a 5-year fixed-rate mortgage in the first year. If you plan to move house soon, pay attention to ERCs or consider a variable rate mortgage which doesn’t have ERCs.

Top deals typically come with a £999 fee

Your First Home – new scheme announcedAndy Burnham, Prime Minister, has announced a new scheme to help first-time buyers...
30/09/2026

Your First Home – new scheme announced
Andy Burnham, Prime Minister, has announced a new scheme to help first-time buyers.
It was announced that it will be open to first-time buyers in England with a deposit of 2.5%, and the government will provide them with a loan worth 20% of their new-build property's value to help pay for the purchase.
There will be an initial interest-free period, although there is no information about the timing and the amount of the loan yet. More details of the Your First Home scheme will be provided by Chancellor John Healey at the October Budget
The Your First Home policy looks similar to the previous Help To Buy scheme, introduced in 2013, which helped to buy 387,000 properties, including 328,000 for first-time buyers.

https://www.bbc.co.uk/news/articles/cv8e33gdw17no
The new policy is aimed at facilitating the growth of the economy by increasing demand for new-build houses and also it is helping struggling first-time buyers.
The property industry supported the new initiative from the Labour government. Neil Jefferson, the chief executive of the Homebuilders Federation, said: “We welcome the Government’s announcement today and its recognition of the significant challenges facing first-time buyers and the wider housing market.
“We have been calling for action to improve access to home ownership, and a well-designed scheme has the potential to make a real difference to households who are struggling to get onto the housing ladder.”
Alex Slater, Rightmove’s director of new homes, also noted: “Any measures that help more first-time buyers access home ownership are welcome, particularly at a time when housing developers are facing some of the toughest market conditions in years. Our data shows that the number of new housing developments coming to market has fallen to its lowest rate on record, highlighting the challenges facing the sector.
“Developers continue to manage a combination of viability pressures, affordability constraints and competition from a high level of resale homes on the market. Support should focus on helping to unlock greater affordability, improve confidence to bring forward new developments, and support the delivery of much-needed new homes across Great Britain.”

The prime minister says he wants people without support from the "bank of mum and dad" to receive help.

12 reasons for mortgage refusal according to WhichIt is very important to understand why your mortgage application could...
14/09/2026

12 reasons for mortgage refusal according to Which
It is very important to understand why your mortgage application could be rejected. Some reasons could be because of the property; some reasons could be because of your own circumstances. Very often it’s not the end of the world, and there could be another lender willing to provide the mortgage for this property, but avoiding the rejection in the first place can make your life much easier.

1. Getting ‘down valuation’. It’s possible to appeal the decision showing evidence of the property value, or the buyer can re-negotiate the price with the seller or add additional funds to the deposit.
2. Leasehold issues. It could be the ground rent increase over time, or the short time remaining on the lease. Different lenders have their own rules, if the property you intend to buy has less than 90 years remaining, better to check with the banks or your mortgage broker before applying.
3. Number of storeys
4. Spray foam insulation
5. Cladding. Some buildings require remediation work, and potential issues with it can make apartments in such houses unmortgageable.
6. Flood risk. It’s worth checking high-risk flood areas in advance to avoid rejection.
7. Above commercial premises. For example, restaurants and takeaways can cause special concerns for lenders due to fire risks, but other businesses could be acceptable; it’s worth checking in advance before the application.
8. Flying freehold
9. Unusual construction
10. Japanese knotweed. Although it doesn’t automatically mean a decline, it still can create considerable difficulties. Also, beware of other types of aggressive plants, which can cause the mortgage refusal.
11. Subsidence risk. The presence of gases, mining operations in the are or other geological factors can require further investigation and can result in refusal.
12. Your home is too small. 25 or 30 sq meters could be too small for some lenders.
Something about the applicant could cause refusal from the lenders, like:
• Current affordability
• Poor credit score
• Future affordability
• Recent job move
It’s a good idea to talk to a mortgage adviser before starting the buying process to avoid stress and loss of money.

From Japanese knotweed to cladding, we spoke to brokers about why lenders might reject your application

Rightmove has downgraded its house price forecast for 2026 from 2% growth to fall between 0 and 2%According to the late...
18/08/2026

Rightmove has downgraded its house price forecast for 2026 from 2% growth to fall between 0 and 2%

According to the latest HPI (House Price Index), average asking prices fell by 2% in August. Although prices drop seasonally in August, this is a bigger drop than the 1.3% average
https://www.propertyinvestortoday.co.uk/breaking-news/2026/08/rightmove-downgrades-price-forecasts/

Annually, prices decreased by 1%, and this is the biggest fall since December 2023, when mortgages were increasing quickly after the disastrous mini-budget.

Uncertainty in the Middle East has led to higher mortgage rates, with the average 2-year rate up to 5.09% from 4.92% last month.
A Rightmove statement says: “The changing picture for mortgage rates, alongside geopolitical uncertainty and the new Chancellor’s first Budget in October, highlights how uncertain the market is right now.“
“Consequently, Rightmove downgrades its price forecast for 2026 from +2% to a change of between 0 and -2% in average new seller asking prices over the year as a whole.”

Rightmove cuts its 2026 outlook as asking values decline and regional differences widen – Rightmove downgrades price forecasts

Plan Broadband in advanceFor first-time buyers who are close to moving into their new home there are a lot of things to ...
09/08/2026

Plan Broadband in advance
For first-time buyers who are close to moving into their new home there are a lot of things to prepare for. There is one thing that we all need in our modern life: the Internet.
To avoid additional costs and delays, movers are advised to look at arranging the Broadband in advance.
• Chack what providers are available in your new house, check existing connections. In some new-build houses the broadband for the entire building or street could provided by a single provider. Use the Uswitch Postcode Checker comparison tool to see what fibre or standard networks reach your new property.
• Review your current provider. Are you still in a fixed-term contract? When it will end? Can you switch to the new property? It could be possible if they operate in your area, but there might be additional set up costs and it will need two or more weeks to book an engineer visit for the new installation.
• If you decide to use another provider, check available deals in your area. Broadband speeds, pricing, and introductory offers can vary significantly by location, so comparing broadband deals in advance can help you secure better value.
• Contact your current provider and inform them about your move date. Although some companies require only two weeks, many require notice 30 days in advance. If you plan to stay with the same provider, you still need to inform them earlier, especially if the new house require the new connection.
• Even the best planning can leave you without the Internet for several days. Mobile data and phone tethering can provide a temporary internet connection, but watch your usage as going above your monthly mobile contract data could be expensive.

There are five tips for home movers – Movers urged to plan ahead for broadband

Barclays: house deposits are more affordableThe latest mortgage data from Barclays shows that although house prices have...
26/07/2026

Barclays: house deposits are more affordable

The latest mortgage data from Barclays shows that although house prices have increased slightly since last June, deposit values have fallen considerably, now -24.8% since last year.
Barclays also reports that more people are buying on their own, not with a partner.
In 1980, 83% of fist houses were bought with partners, and only 15% were bought by a single person.
But this June, almost 37% of first homes were bought by a single person.

The data comes from Barclays – Good news as deposits more affordable - Barclays

How can your parents or your family help you to buy your first house?According to research by Savills, a real estate age...
15/07/2026

How can your parents or your family help you to buy your first house?

According to research by Savills, a real estate agency, half of first-time buyers received financial support from their family in 2025.
How can it be done?
1. Help with the deposit.
Although gifts are the most common way to help first-time buyers, there are other ways to do it.
Another way to boost the deposit is a loan.
It is important to arrange the correct documentation as the lender will ask to confirm if buyers received a gift or it was a loan.
2. Guarantor mortgages
Parents or a family member can use their savings as additional security for the mortgage.
For example, Barclays offers the Family Springboard Mortgage. It allows buyers to purchase without a deposit, but a family member will deposit 10% of the property's value into a special savings account. This will be held for five years and then released back, with interest added, provided all mortgage payments are made.
If something goes wrong and the lender had to repossess and sell the property and received less than what was still owed on the mortgage, they could recoup the difference from your savings. Unfortunately, the rate for this type of savings account is usually lower than the normal savings rates on the market.
3. Joint Borrower Sole Proprietor (JBSP) mortgages
In this case, while the parent and child are both named on the mortgage, only the child's name will be on the property's deeds, meaning the parent will not pay stamp duty. By combining income with parents, it’s possible to receive a larger mortgage and buy a bigger house.
This type of mortgage is aimed at helping borrowers purchase a property, with the expectation that they will shift to a standard residential mortgage once sufficient equity is built up over time.

First-time buyers got £11bn in financial support last year, but should you use a gift, loan or mortgage to help?

New reforms are coming to the property marketThe government has recently announced reforms to the homebuying process aim...
05/07/2026

New reforms are coming to the property market

The government has recently announced reforms to the homebuying process aimed at speeding it up and ending “gazumping”.
The changes will include
• upfront information about the property: conditions, any leasehold costs, information about the property chain so buyers can make better informed decisions
• sellers will pay for surveys and this information will be included in the house pack.
• to introduce a mechanism to make the process legally binding at an earlier stage, limiting the ability of either party to walk away without a legitimate reason. The possibility of a sale collapsing after months of preparation makes it extremely stressful for both buyers and sellers.
• replacing paper-based systems with modern digital options. The government wants to introduce digital property logbooks and sales packs, digital identity checks, electronic signatures and AI-assisted conveyancing.
The government says that these changes will halve the number of sales that fall through and they will reduce the average buying time by four weeks, saving buyers on average about £650.

https://www.rightmove.co.uk/news/articles/property-news/government-homebuying-rule-change-proposals/
The timeline for the changes:
• Later this year: a Code of Practice to set out minimum standards for property agents and guidance to improve the quality of information in property listings;
• From 2027: consultation on estate agent qualifications and expanded digital tools;
• By the mid-2029 (the end of this parliament): comprehensive legislation to require sales packs, binding contracts, and digital systems that support the efficient sharing of trusted digital property information.

Although many in the industry support the proposed reforms, there is some criticism. Although not all details are available at the moment, the proposal looks similar to HIP (House Information Pack), which was introduced by Brown’s administration in 2007 and which was scrapped later because it didn’t serve its purpose. There are also voices that buyers will not trust the information paid for by sellers and they will order their own, effectively doubling the costs of the property transaction.
Sir James Cleverly, the shadow housing secretary, said the housing proposals would deter sellers from listing their homes and reduce the supply of properties for sale.
Rightmove's chief executive Johan Svanstrom said their data shows more than one in five sales will initially fall through.
"This is an encouraging step towards a faster and more efficient property market, addressing some of the biggest frustrations that home-movers and industry participants face," he said.
"By making more information available upfront, there is a clear opportunity to reduce fall-throughs and increase transparency."

The reforms could cut average buying times and save first-time buyers an average of £650, according to government estimates.

Interest rate held at 3.75% todayYesterday’s news that inflation stayed at 2.8%, which was lower than expected 3%, gave ...
18/06/2026

Interest rate held at 3.75% today
Yesterday’s news that inflation stayed at 2.8%, which was lower than expected 3%, gave some positive momentum. It’s still above 2% target for the Bank of England, but the Monetary Policy Committee decided to keep the interest rate for another month.
Despite a signed agreement between the USA and Iran, there is still big uncertainty about how and when the oil flow will be restored, and how energy prices will affect inflation.
A stable base rate can help banks to start gradually decreasing mortgage rates, and the process is already starting; several lenders reduced their rates this week.
https://www.bbc.co.uk/news/articles/c33yzm5mdjpo

And Simon Gammon of Knight Frank Finance says:”The Bank of England’s decision to hold rates, combined with weak pay growth and lower-than-expected inflation, will pave the way for mortgage lenders to cut rates over the coming weeks.
“The repricing began earlier this week when Nationwide reduced its headline two-year fixed rate to 4.29%, which is now the cheapest fixed rate on the high street.

“Many lenders have fallen short of their lending targets so far this year and will be looking to win a greater share of business during the second half.
“While we are unlikely to see a dramatic fall in mortgage rates, borrowers should benefit from a gradual improvement in deals over the summer, which will help support housing market activity later in the year.”

The Bank last cut interest rates in December but upheaval in the Middle East has stalled any further reductions.

Rightmove: biggest asking price drop in June in 14 yearsRightmove data show 0.6% monthly fall and 0.5% fall from the pre...
16/06/2026

Rightmove: biggest asking price drop in June in 14 years

Rightmove data show 0.6% monthly fall and 0.5% fall from the previous year.
The number of homes for sale are at historically high levels for this time of year, up 6% on 2024 and 12% on 2023, demand is weak and down 10% in May 2026 compared to a year earlier.
Rightmove noted: “May’s unusual heatwave kick-started summer earlier than usual this year, while the World Cup may prove to be a distraction for home-movers. Meanwhile, ongoing economic challenges and global uncertainty remain.”
There’s a clear divide between north and south: “Prices have fallen across all southern England regions and Wales, while the more affordable northern areas such as the North East and Scotland are holding up better compared to this time last year.”
Collen Babcock, property expert at Rightmove, said: “While the summer market has come a bit early this year, overall activity is still within a typical historic range. What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions. Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price.
“It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment. While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”

Polly Ogden Duffy, managing director at John D Wood & Co London, said the figures were good for new buyers: “For first-time buyers, this represents one of the better windows of opportunity in recent years, with more choice and greater scope to negotiate.”

Rightmove reports the sharpest June asking price fall in 14 years as sellers compete for buyers amid abundant housing stock. – Biggest June house price drop in 14 years

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