While there weren’t any major housing or policy changes in today’s Spring Statement, the economic outlook suggests mortgage pricing could gradually improve if inflation continues to ease.
UK Economy Update
A steady Spring Statement with no big surprises is actually good news as it keeps the financial markets calm. This is great for anyone wanting to buy for the first time, move home or remortgage.
1. Inflation to fall faster than predicted - The Office of Budget Responsibility (OBR) expects inflation to continue to ease at a faster rate than previously expected in the Autumn. This is a measure of how much the price of the things we buy rises over time. This will generally be seen as a good thing for those saving for a deposit, as it means you’ll generally have more money to put away at the end of the month.
2. Mortgage rates have been falling - The Chancellor pointed out that there have been six cuts to the Bank of England’s base rate since the General Election in 2024. This can affect the amount of interest current and potential home owners will pay on their mortgages.
3. Improvement in the cost of living - The cost of living has had a detrimental impact on how much first time buyers have been able to save. The Chancellor announced that the cost of living is easing meaning, once again, savers should see more money that can be put towards savings, as we see household bills go down.
“No immediate change”
Our expert mortgage adviser, Rachael Cashin, shares her thoughts on the Spring Statement:
“The Spring Statement was very much a cautious economic update this time around. It focused on fiscal discipline and stability, but stopped short of introducing any major new measures to directly support households or homebuyers right now.
“For most people, that means there’s unlikely to be any immediate change to household bills or affordability as a result of this announcement. The bigger, more meaningful policy decisions are more likely to come later in the year, potentially at the Autumn Budget.
“In reality, the mortgage market will continue to be driven more by interest rate expectations and overall economic confidence than by anything announced in this Statement. For customers, the key thing is to focus on what they can control - their budget, their plans, and getting the right advice - rather than waiting for a single political event to change the landscape overnight.”
What is the Spring Statement?
The Spring Statement is one of the government's yearly announcements, alongside the Autumn Budget. It's delivered by the Chancellor of the Exchequer, Rachel Reeves, and provides an update on the current state of the UK economy, including economic growth, inflation and government borrowing.
What should you do now?
Remember: Government announcements rarely change mortgage deals overnight, but they can influence rates, affordability and lending over time which is why checking your options early can help.
Buying for the first time?
While the Spring Statement may not directly impact mortgage rates, the government can implement schemes that can help first time buyers, such as the previous Help to Buy scheme that was introduced in 2013.
Now is a great time to check how much you could borrow, review your credit profile, and start building a clear deposit plan. There are plenty of lenders out there offering their own innovative schemes to help first time buyers.
Speaking to a mortgage adviser early can help you understand your options, lock in a deal, and move quickly when the right property comes along.
Remortgaging this year?
The Spring Statement is a good reminder to review your remortgage options early. Rates and lender criteria can change, so checking what deals are available now could help you secure a more suitable rate before moving onto your lender’s standard variable rate.
Speaking to a mortgage adviser ahead of your renewal date gives you time to make a confident switch when the time is right.
Talk to us
If you’re unsure whether today’s announcement affects you, we’re here to break it down and explain what it means for you, as well as answer any other questions you may have.
What you can do now
We have a wealth of resources to help you continue your mortgage journey with confidence - no matter which stage you’re at:
Check your affordability
Now’s a great time to get started and see how much you can afford. Chances are, you can borrow more now than you could six months ago due to lenders relaxing their criteria.
Mortgage Monitoring
No matter what happens, we’ll continue to monitor your current mortgage through our monthly Mortgage Monitoring home reports. We’ll explore the market and notify you when a better deal is available - giving you peace of mind you’re on the right deal, every month.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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