Author: timdurman

A shift is taking place across the mortgage market, bringing a wave of opportunity for both prospective buyers and existing homeowners. Leading lenders are responding to expectations of falling interest rates by reducing mortgage pricing and easing affordability criteria. This development could enhance borrowing potential for many households in the months ahead.

Leading Lenders Reduce Mortgage Rates

Several major lenders, including Barclays, TSB, HSBC, Coventry Building Society and the Co-operative Bank, have recently announced reductions to their fixed-rate mortgage products. Barclays has been among the first FTSE 100 banks to offer two-year and five-year fixed deals starting from 3.99 per cent¹. 

HSBC has followed suit with a broad range of reductions across its residential and buy-to-let offerings, including five-year fixed rates falling below four per cent. Industry analysts suggest this trend signals increased competition in the market, with further reductions likely as other lenders seek to remain competitive¹.

According to data from Rightmove, the average two-year fixed rate has decreased by 0.42 percentage points over the past year, now sitting at 4.81 per cent. Five-year fixed rates have also seen a reduction, down 0.13 percentage points to 4.70 per cent¹.

Increased Borrowing Potential

In addition to rate cuts, lending criteria are being revised to improve access to borrowing. Lloyds Banking Group, which includes Halifax, Bank of Scotland and BM Solutions, has adjusted its affordability calculations. This change could allow the average borrower to access approximately £38,000 more on their mortgage, equating to an increase of up to 13 per cent in maximum borrowing for some applicants¹.

These adjustments have primarily affected stress testing rates, which assess whether borrowers could afford repayments if interest rates were to rise. For five-year fixed rate products, the stress test threshold has been lowered, making affordability calculations more favourable for applicants.

Similar changes have been made by Santander, which recently reduced its stress test rates by up to 0.75 percentage points, making them the lowest since 2022. These updates are particularly significant for first-time buyers and home movers who previously struggled to meet stringent affordability requirements².

Remortgaging Activity Increases

The Bank of England’s latest Credit Conditions Survey reports a notable rise in remortgaging activity, with homeowners reacting swiftly to falling rates. As fixed-rate deals expire and new, more competitive options become available, a surge in remortgage applications is anticipated over the coming months³.

This trend reflects a growing confidence in the mortgage market, driven in part by expectations that the Bank of England will cut the base rate later this year. Currently held at 4.5 per cent, the base rate remains below its 2023 peak of 5.25 per cent. Market consensus suggests that multiple cuts may take place in 2025, potentially improving conditions further for borrowers⁴.

A More Flexible Lending Environment

The Financial Conduct Authority has also acknowledged that mortgage stress testing may have been applied too cautiously in recent years. The regulator has indicated a willingness to review current rules in order to support greater access to home ownership, while maintaining prudent lending standards.

This policy backdrop, combined with lender-driven initiatives, suggests a more flexible and borrower-friendly environment is emerging. While broader economic uncertainties remain, improved mortgage availability and more accessible rates are welcome developments for anyone looking to purchase, remortgage or move home.

What This Means for You

For buyers, the increased supply of mortgage products and eased affordability checks could significantly expand borrowing options. For existing homeowners, now may be an opportune time to review existing mortgage arrangements and consider securing a new deal.

If you would like to explore how these changes might affect your borrowing potential or discuss whether it is the right time to remortgage, please get in touch to arrange a consultation.

References:

1. City AM (2025). HSBC, Barclays, Lloyds: Lenders bank on interest rate cut as mortgage ‘price war’ heats up. Available at: https://www.cityam.com/hsbc-barclays-lloyds-lenders-loosen-up-as-mortgage-price-war-heats-up/  [Accessed 23 Apr. 2025].
2. Santander (2025). Santander becomes first lender to reduce mortgage affordability rates to enable customers to borrow more Available at: https://www.santander.co.uk/about-santander/media-centre/press-releases/santander-becomes-first-lender-to-reduce-mortgage? [Accessed 23 Apr. 2025].
3. Bank of England (2025). Credit Conditions Survey – 2025 Q1.Available at: https://www.bankofengland.co.uk/credit-conditions-survey/2025/2025-q1       [Accessed 23 Apr. 2025].
4. Euro News. (2025). UK inflation falls more than expected boosting rate cut chances. Available at:https://www.euronews.com/business/2025/04/16/uk-inflation-falls-more-than-expected-boosting-rate-cut-chances    [Accessed 28 Apr. 2025].

All the information in this article is correct as of the publish date 1st May 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page

For most people, their mortgage is their largest monthly financial commitment. However, few take the time to consider what might happen if they were suddenly unable to work due to illness or injury.

With rising household costs and increasing NHS waiting times, now is an ideal time to ask a simple but important question: could you still pay your mortgage if your income stopped for a few weeks or months?

Statutory Sick Pay: How Much Will You Actually Receive?

If you are employed and become too unwell to work, you may be entitled to Statutory Sick Pay (SSP). This is paid by your employer, but only at a basic rate.

As of the latest figures, SSP is £118.75 per week, and it is only paid for a maximum of 28 weeks. You must earn at least £123 per week (before tax) to qualify, and it is not paid for the first three days of absence unless your employer offers enhanced sick pay¹.

To put it plainly, £118.75 per week is less than £480 per month—an amount unlikely to cover even the most modest mortgage payments.

What If You Are Self-Employed?

If you are self-employed, the situation is even more stark. You are not entitled to Statutory Sick Pay at all. This means that if you cannot work, you will not receive any income from the state, and you will be solely responsible for maintaining your mortgage and other living expenses.

Why This Matters for Mortgage Holders

If your income stops suddenly, even a short period off work can put real pressure on your finances. After a few weeks without pay, many people are forced to dip into savings, borrow from family, or rely on credit. After a few months, mortgage arrears, credit problems, or even repossession may become a very real risk.

It is essential that anyone with a mortgage considers how they would cope financially if they were unable to work for a period of time due to illness or injury.

How Can You Protect Yourself?

There are two main types of protection policies designed to support your income and help cover your mortgage if you become unwell:

1. Income Protection Insurance

This type of policy pays you a monthly income if you are unable to work due to illness or injury.

You can choose a “deferred period” (for example, 4 weeks, 8 weeks, or 3 months), after which the policy begins paying out. Payments continue either until you recover, retire, or the policy term ends.

Income protection is ideal for covering your mortgage payments and general living costs during a period of ill health.

2. Critical Illness Cover

This policy pays a tax-free lump sum if you are diagnosed with a specified critical illness such as cancer, heart attack, or stroke.

The money can be used to repay your mortgage in full, adapt your home, or simply reduce financial pressure during recovery.

Many people choose to combine both types of policy to ensure short-term income support and longer-term security.

Do You Already Have Cover? It May Be Time to Review It

Even if you already have protection in place, it is worth reviewing it regularly. Your mortgage may have changed, your income may have increased, or you may have started a family since taking it out. These changes could leave you underinsured.

Likewise, if you have sick pay from work, it is important to understand how long that support would last and whether it would be enough to cover all of your commitments.

Protection Offers Peace of Mind

No one plans to become ill or injured—but if it happens, the last thing you want to worry about is how to keep up with your mortgage payments.

Having the right protection in place gives you and your family peace of mind. It ensures that, should the unexpected occur, you can focus on recovery—not financial stress.

If you would like to review your current protection arrangements, or find out what options are available, we would be happy to help.

Reference:

1. Gov.uk (2025). Statutory Sick Pay (SSP) Available at: https://www.gov.uk/statutory-sick-pay        [Accessed 23 Apr. 2025].

All the information in this article is correct as of the publish date 1st May 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

The UK property market has made a confident start to spring, with the average asking price of a home reaching a new record high. This comes despite the end of the temporary stamp duty relief at the beginning of April, demonstrating that both buyers and sellers remain active and engaged.

According to the latest figures from the April House Price Index, the average asking price for a UK property now stands at £377,182. This represents a monthly increase of 1.4 per cent and an annual rise of 1.3 per cent. Buyer demand has grown by 5 per cent compared to this time last year, while the number of new sellers entering the market has increased by 4 per cent year-on-year¹. Stock levels are now the highest for this time of year in over a decade.

Confidence Returns to the Market

The scale of this month’s price increase exceeds the usual seasonal uplift typically seen in April. Analysts attribute this to renewed buyer confidence, increased property listings and the continued resilience of the market in the face of wider economic changes¹.

While buyers have more choice, competition remains strong. Homes that are priced correctly from the outset are significantly more likely to attract early interest and progress to completion without price reductions. Sellers are therefore advised to seek accurate valuations and work closely with their estate agents to ensure they are aligned with local market expectations.

Regional Trends

Across the Midlands, Northern England, Wales and Scotland, buyer demand has outpaced the national average, and these regions have recorded new local price highs. By contrast, more modest price growth has been seen in the South East and South West, where higher property values continue to meet affordability limits¹.

In London, a new record in average asking prices has also been reached, despite a slight drop in buyer demand compared to April 2024. However, this trend may be temporary, given the capital’s exposure to broader economic and geopolitical conditions¹.

Buyers Press On Despite Stamp Duty Changes

Encouragingly, the recent increase in stamp duty has not resulted in a noticeable rise in sales falling through. In fact, the backlog of pending completions decreased by 4 per cent in March, marking the first time such a drop has occurred during that month since 2020. This suggests that buyers have remained committed to their plans, even if unable to complete before the tax change¹.

This trend reflects the underlying strength of demand and the continued appeal of home ownership, particularly in light of a growing supply of properties and seasonal optimism.

What This Means for You

If you are considering buying or selling this year, the current market conditions present an encouraging outlook. For buyers, an increase in available properties offers more choice and the potential for negotiation. For sellers, there is a clear advantage in pricing accurately and preparing homes to a high standard in order to attract serious interest.

Here to Support Your Next Step

Whether you are planning to move or simply want to explore your options, we are here to provide expert guidance tailored to your circumstances. We can help you assess your affordability, explore how much you could borrow, and support you throughout your home-buying journey.

For a confidential conversation about your plans, please feel free to get in touch.

References:

1. RightMove (2025). House prices hit new record high | Property news. Available at: https://www.rightmove.co.uk/news/articles/property-news/house-prices-hit-record-high-april-2025/        [Accessed 23 Apr. 2025].

All the information in this article is correct as of the publish date 1st May 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

If you’re planning to buy a home in England or Northern Ireland this year, there’s an important update you should know — stamp duty has increased.

From 1 April 2025, the government changed the rules, which means many home buyers will now pay more in stamp duty than they would have a few months ago.

Here’s a simple breakdown of what’s changed, who it affects, and what it means for your budget.

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property or land in England or Northern Ireland. It applies whether you’re:

• Buying your first home
• Moving to a new one
• Buying a second property (like a buy-to-let or holiday home)

You pay stamp duty after your sale completes—usually your solicitor will sort this for you—but it needs to be paid within 14 days¹.

What Changed in April 2025?

During the pandemic and economic uncertainty, the government increased the tax-free thresholds to make moving more affordable. That ended on 1 April 2025, so the thresholds are now back to where they were before.

Here’s what that means in real terms¹:

• You now start paying stamp duty on anything over £125,000 (it used to be £250,000)
• If you’re a first-time buyer, you now only get tax relief up to £300,000 (previously £425,000)
• If your home costs more than £500,000, you get no first-time buyer discount at all

How Much Will I Pay Now?

Here are the current rates for most buyers²:

Property Price	Stamp Duty Rate
Up to £125,000	0%
£125,001 – £250,000	2%
£250,001 – £925,000	5%
£925,001 – £1.5 million	10%
Over £1.5 million	12%

First-Time Buyers – What’s Changed?

If you’ve never owned a home before, you’ll still get a discount—but it’s not as generous as it was¹:

Price of Your First Home	What You’ll Pay
Up to £300,000	0% stamp duty
£300,001 – £500,000	5% on the part over £300,000
Over £500,000	No discount at all

Example:
If you’re buying your first home for £500,000, you’ll pay £10,000 in stamp duty.

Buying a Second Property? There’s Extra Tax

If you already own a home and you’re buying another—like a buy-to-let or holiday home—you’ll pay an extra 5% on top of the normal rates¹.

This applies to properties over £40,000.

Real Examples

Example 1: Buying a £295,000 home (not a first-time buyer)

• 0% on the first £125,000 = £0
• 2% on the next £125,000 = £2,500
• 5% on the last £45,000 = £2,250
• Total = £4,750

Example 2: First-time buyer purchasing at £500,000

• 0% on the first £300,000 = £0
• 5% on the remaining £200,000 = £10,000
• Total = £10,000

What If You’re Buying in Scotland or Wales?

Stamp duty works differently in Scotland and Wales:

Scotland – You’ll Pay LBTT (Land and Buildings Transaction Tax)²

• 0% up to £145,000
• 2% from £145,001 to £250,000
• 5% from £250,001 to £325,000
• 10% from £325,001 to £750,000
• 12% above £750,000
• First-time buyers get 0% up to £175,000
• Buying a second home? Add 8% extra on top

Wales – You’ll Pay LTT (Land Transaction Tax)²

• 0% up to £225,000
• 6% from £225,001 to £400,000
• 7.5% from £400,001 to £750,000
• 10% from £750,001 to £1.5m
• 12% above £1.5m
• No first-time buyer relief
• Buying a second property? You’ll pay up to 17%, depending on the price

What Should You Do Now?

If you’re thinking about buying, don’t let stamp duty catch you by surprise. Here’s what I recommend:

• Check how much you’ll need to pay using the official calculator
• Add it to your total budget so you don’t get caught short later
• Get advice early, especially if you already own another property or are buying your first home

Need Help Working It All Out?

As a mortgage adviser, we help people like you plan your next move. If you’ve got questions about buying your first home, upgrading, or investing in property, we’re here to help.

References:

1. Gov.uk (2025). Stamp Duty Land Tax. Available at: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates [Accessed 23 Apr. 2025].
2. BBC (2025). Stamp duty: What is it, how much is it and how is it changing?  Available at: https://www.bbc.co.uk/news/business-53319433 [Accessed 23 Apr. 2025].

All the information in this article is correct as of the publish date 1st May 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

The UK government has announced plans to increase the tax reporting threshold for side incomes from £1,000 to £3,000 by the end of 2029. This change is expected to remove up to 300,000 people from self-assessment tax returns, simplifying tax obligations for individuals earning from small-scale trading, freelancing, and online selling¹.

Under current rules, individuals earning less than £1,000 per tax year through side activities do not need to declare this income due to the Trading Allowance. However, exceeding this threshold by even £1 requires a full self-assessment tax return. The new system would still require tax to be paid on income over £1,000, but those earning between £1,000 and £3,000 would no longer need to file a tax return. Instead, they could settle their tax through a simple online payment system or via PAYE deductions.

Stricter Oversight of Online Sellers

Since January 2024, HMRC has introduced new regulations for online marketplaces, requiring platforms such as eBay, Vinted, and Etsy to automatically report seller earnings. This change is intended to improve tax compliance by making it easier for HMRC to track undeclared income from digital sales².

As part of its enforcement strategy, HMRC has already begun sending ‘nudge letters’ to individuals suspected of failing to declare earnings from online trading. With direct access to data from digital platforms, HMRC is now able to identify and contact sellers who may owe tax³.

US-Style Whistleblower Rewards Under Consideration

The government is also exploring a new whistleblower reward scheme to encourage individuals to report tax fraud. This would offer higher financial incentives to informants, bringing the UK system closer to that of the US Internal Revenue Service (IRS), which has successfully used similar schemes to recover unpaid taxes⁴.

The aim is to target large-scale tax evasion, moving beyond low-level reports from neighbours or former employees. To support this, HMRC is expected to introduce stronger legal protections for whistleblowers, ensuring their safety and confidentiality.

If these proposals are implemented, they could streamline tax reporting for small-scale earners, while giving HMRC greater powers to monitor online sales and tackle tax evasion. However, further details on the practical application of these measures and their impact on taxpayers are still to be confirmed.

Sources

1.GOV.UK (2025). Boost for side-hustlers as 300,000 people to be taken out of tax returns, government announces. Available at: https://www.gov.uk/government/news/boost-for-side-hustlers-as-300000-people-to-be-taken-out-of-tax-returns-government-announces   [Accessed 14 Mar. 2025].

2.The Guardian (2025). New UK tax rules on side hustles like eBay and Vinted may lead to ‘nasty surprises’. Available at: https://www.theguardian.com/politics/2025/jan/11/new-uk-tax-rules-on-side-hustles-like-ebay-and-vinted-may-lead-to-nasty-surprises      [Accessed 14 Mar. 2025].

3. This is Money (2025). Tax expert warns sellers who use online marketplaces not to ignore new wave of HMRC nudge letters Available at: https://www.thisismoney.co.uk/money/smallbusiness/article-14439195/Tax-expert-warns-sellers-use-online-marketplaces-not-ignore-new-wave-HMRC-nudge-letters.html      [Accessed 14 Mar. 2025].

4. LBC (2025). Government announces cash reward scheme for whistleblowers who expose tax avoidance and fraud. Available at: https://www.lbc.co.uk/news/money/government-cash-whistleblowers-expose-tax-avoidance-fraud/      [Accessed 14 Mar. 2025].

‌All the information in this article is correct as of the publish date 27^th March 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Buying your first home is exciting, but it can also feel overwhelming—especially when saving for a deposit, understanding mortgage options, and navigating rising house prices. If you or someone you know is trying to get onto the property ladder, there are government schemes and mortgage options that can help make buying a home more achievable.

This guide will take you through some of the key schemes available, explain how they work, and highlight why speaking to a mortgage adviser is an essential step in securing the right mortgage.

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1. Understanding Low-Deposit Mortgages

One of the biggest hurdles for first-time buyers is saving for a deposit. Many believe they need a large sum upfront, but there are options available for those with small deposits—or even no deposit at all.

95% Loan-to-Value (LTV) Mortgages

For buyers with a small deposit, 95% LTV mortgages allow you to buy a home with just a 5% deposit. Many lenders, including high-street banks, offer these mortgages, and while interest rates may be higher than for larger deposits, they allow you to buy sooner rather than later.

A mortgage adviser can help you compare lenders and find the best 95% LTV mortgage suited to your financial situation.

The Mortgage Guarantee Scheme

This government-backed scheme helps lenders offer 95% mortgages to first-time buyers. If you have a 5% deposit, this scheme could improve your chances of securing a mortgage. It is available until June 2025, so if you’re thinking of buying, now is the time to explore your options¹.

100% Mortgages – Skipton’s Track Record Mortgage

If saving for a deposit has been a struggle, Skipton Building Society’s Track Record Mortgage could be an option. This is a 100% mortgage designed for renters who have paid rent on time for at least 12 months. It allows buyers to purchase a home without needing a deposit, but it does come with certain conditions².

A mortgage adviser can help determine whether this is a suitable option for you and explain any risks involved.

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2. Boosting Your Deposit with Family Support

Many first-time buyers rely on family support to increase their deposit or improve their affordability. There are structured mortgage options designed to help families assist buyers in a secure and manageable way.

Family Assist and Guarantor Mortgages

These mortgages allow family members to provide financial support in one of two ways³:

1. Family Assist Mortgages – A family member places savings into an account linked to the mortgage or uses their own property as security.
2. Guarantor Mortgages – A family member guarantees the mortgage repayments, meaning they step in if the borrower struggles to make payments.

These options can increase borrowing power but also come with risks. It’s important to get expert mortgage advice before making a decision.

Generation Home – Income and Deposit Boosters

Generation Home offers innovative mortgage products that allow friends or family to help with affordability:

• Income Booster – A family member can add their income to your mortgage application, increasing the amount you can borrow⁴.
• Deposit Booster – Family members can contribute towards your deposit in a structured way—either as a loan, a gift, or an equity investment⁵.

This flexibility makes it easier for first-time buyers to purchase their home without relying on a traditional lump-sum gift from family.

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3. Government Schemes for First-Time Buyers

Beyond mortgage options, there are government-backed schemes designed to make homeownership more accessible.

Lifetime ISA (LISA) – Saving with a Government Bonus

A Lifetime ISA (LISA) helps first-time buyers save for a deposit with a 25% government bonus⁶.

• You can save up to £4,000 per year.
• The government adds £1,000 per year as a bonus.
• The money can only be used for a first home worth up to £450,000 or for retirement.

This is one of the best ways to build a deposit quickly, especially for buyers planning their purchase in a few years.

Shared Ownership – Buying a Share of a Home

If a full mortgage is not affordable, Shared Ownership allows buyers to purchase a portion of a property (25%-75%) while paying rent on the remaining share⁷.

• A mortgage is required for the portion you buy.
• You can increase your share over time through a process called “staircasing.”

Shared Ownership is available across the UK, but the details vary by region. A mortgage adviser can explain how it works and whether it’s a good fit for your circumstances.

First Homes Scheme – Discounts for First-Time Buyers

This scheme offers new-build homes at a 30% discount (sometimes more) to eligible first-time buyers. The discount remains in place for future sales, ensuring affordable homes for local buyers⁸.

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4. Next Steps – Speaking to a Mortgage Adviser

Why Speak to an Adviser?

Getting the right mortgage is about more than just finding the lowest rate. A mortgage adviser can:

• Explain all the schemes available and check which ones you qualify for.
• Compare mortgage options from multiple lenders, including exclusive deals.
• Help with the mortgage application to improve your chances of approval.
• Make the process easier by handling paperwork and dealing with lenders on your behalf.

How to Get Started

If you or someone you know is looking to buy their first home, the best place to start is by speaking to a mortgage adviser. They can help you explore your options and take the stress out of the mortgage process.

Buying a home is a big decision, but with the right support, it could be closer than you think.

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Final Thoughts

Buying a home may feel challenging, but you don’t have to do it alone. There are government schemes, mortgage options, and mortgage advisers ready to help make homeownership possible.

If you know a first-time buyer, sharing this information with them could make all the difference. And if you’re ready to explore your mortgage options, speak to a mortgage adviser today to take the first step towards homeownership.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Sources

1.GOV.UK (2023). The mortgage guarantee scheme. Available at: https://www.gov.uk/government/publications/the-mortgage-guarantee-scheme [Accessed 14 Mar. 2025].

2. Skipton.co.uk. (2025). Track Record mortgages – Skipton’s mortgage for renters. Available at: https://www.skipton.co.uk/mortgages/first-time-buyers/track-record-mortgage [Accessed 14 Mar. 2025].

3. USwitch (2023). Family Assist Mortgages. Available at: https://www.uswitch.com/mortgages/guides/family-assist-mortgage/  [Accessed 14 Mar. 2025].

‌4. Generation Homes (2025). Income Booster – Generation Home Available at: https://www.generationhome.com/income-booster [Accessed 14 Mar. 2025].

5. Generation Homes (2025). Deposit Booster – Generation Home. Available at: https://www.generationhome.com/deposit-booster  [Accessed 14 Mar. 2025].

6. GOV.UK (2025). Lifetime ISA. Available at: https://www.gov.uk/lifetime-isa  [Accessed 14 Mar. 2025].

7. GOV.UK (2022). Shared ownership homes: buying, improving and selling. Available at: https://www.gov.uk/shared-ownership-scheme   [Accessed 14 Mar. 2025].

‌8. GOV.UK (2022). First Homes scheme: first-time buyer’s guide. Available at: https://www.gov.uk/first-homes-scheme  [Accessed 14 Mar. 2025].

All the information in this article is correct as of the publish date 27^th March  2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

If your five-year fixed mortgage deal is coming to an end, you might be wondering what to do next. Many homeowners who locked in a low fixed rate several years ago are now facing a different mortgage market, where rates have changed.

With 1.8 million people needing to remortgage this year, it is important to plan ahead. Speaking to a mortgage adviser can help you find the best option for your situation¹.

What Happens When Your Fixed Rate Ends?

When your fixed-rate mortgage deal expires, your lender will usually move you onto their Standard Variable Rate (SVR). This is often much higher than your current rate and could increase your monthly repayments².

To avoid this, you can remortgage by switching to a new fixed or variable rate deal. A mortgage adviser can help you compare options and find a mortgage that suits your needs.

Should You Fix a New Rate Now or Wait?

Some people are considering waiting to see if mortgage rates drop before fixing a new deal. However, this carries risks²:

• There is no guarantee that rates will fall – Mortgage rates are influenced by many factors, not just the Bank of England base rate.
• You may end up paying more – If you move onto your lender’s SVR while waiting, your monthly payments could be significantly higher.
• Lenders set their own rates – Even if interest rates fall, lenders may not pass on reductions in the way you expect.

A mortgage adviser can help you understand your options and decide whether it is better to fix now or wait.

Can You Secure a New Deal Before Your Current One Ends?

Yes, many lenders allow you to lock in a mortgage rate up to six months before your current deal expires. This means:

• If rates go up, you have secured a lower deal in advance.
• If rates go down, you may be able to switch to a better deal before your new mortgage starts.
• You avoid moving onto a high SVR, helping you manage your monthly payments.

A mortgage adviser can check which lenders offer this option and help you secure the right deal at the right time.

Why Speak to a Mortgage Adviser?

A mortgage adviser can:

• Help you understand your options – Everyone’s situation is different, and an adviser can find a deal that works for you.
• Compare a wide range of lenders – Some mortgage deals are not available directly to customers.
• Save you time and effort – Searching for mortgages can be complicated, but an adviser will handle the process for you.
• Help you avoid unnecessary costs – The right remortgage deal can prevent you from paying more than necessary.

What Should You Do Next?

If your five-year fixed mortgage is ending soon, now is the time to start looking at your options. Waiting too long could cost you more, but securing the right deal could help you keep your repayments under control.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Sources

1. UK Finance (2024). Household Finance Review Q4 2024  Available at: https://www.ukfinance.org.uk/news-and-insight/press-release/household-finance-review-q4-2024  [Accessed 14 Mar. 2025].

‌2. The Guardian (2025). What does the Bank of England interest rate cut mean for mortgages and savings?  Available at: https://www.theguardian.com/money/2025/feb/06/bank-of-england-interest-rate-cut-mortgages-savings-trackers-fixed-rate-deals     [Accessed 14 Mar. 2025].

‌All the information in this article is correct as of the publish date 27^th March 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page

The Labour Government has announced plans to ban the sale of new leasehold flats in England and Wales, replacing them with a commonhold ownership structure. If passed into law, this change would mean that future flat buyers will own their property outright, rather than leasing it for a set period and paying service charges and ground rent to a freeholder¹.

Housing Minister Matthew Pennycook has described the leasehold system as “feudal” and said the reforms aim to stop homeowners from being subject to unfair charges and restrictions¹. However, concerns remain over how this change will affect the five million existing leaseholders and whether transitioning to commonhold will impact property values.

What is Commonhold?

Commonhold is a form of flat ownership where each property owner shares responsibility for the building through a commonhold association, rather than having a separate freeholder. Unlike leasehold, there is no time limit on ownership, and flat owners manage maintenance and service charges collectively².

The government aims to make commonhold the default tenure by 2029, with draft legislation expected in 2025. These rules will apply only to new flats, with no changes planned for existing leaseholders¹.

The End of Leasehold?

Leasehold is currently the most common form of flat ownership in England and Wales, where a freeholder owns the building and leaseholders purchase the right to live in their property for a set term, often 99 or 125 years. Leaseholders typically pay service charges for maintenance and, in some cases, ground rent—though ground rent on new leases was banned in 2022³.

Some leaseholders can buy the freehold of their building collectively, but this process can be expensive and complicated. Under commonhold, all flat owners would have equal control over their property without needing to pay for lease extensions or buy the freehold.

Potential Challenges

While commonhold gives flat owners greater control, it also requires them to work together to manage and fund building maintenance. Disputes over costs or repairs could make administration more complex, particularly in large apartment blocks.

There are also concerns about mortgage availability for commonhold properties, as lenders have been cautious about financing them. The government has pledged to address these issues before making commonhold the standard.

What About Existing Leaseholders?

The proposed changes will not apply automatically to those who already own leasehold properties. Converting an existing leasehold building to commonhold is currently possible but rarely done due to the legal and financial complexities involved. The government is reviewing ways to simplify this process, though details are yet to be confirmed².

For those with long lease terms and no ground rent, converting to commonhold may offer little benefit. However, separate leasehold reforms are set to improve rights for current leaseholders, including longer lease extensions and greater transparency around service charges.

Will Leasehold Properties Lose Value?

With leasehold being phased out for new flats, some worry that existing leasehold properties may become less desirable. However, leasehold will still be the dominant form of ownership for many years, and any impact on property values is likely to be gradual rather than immediate.

Should You Wait to Buy?

For those considering buying a flat, waiting for commonhold may not be necessary. The transition is expected to take several years, and leasehold properties will still offer security—especially with upcoming reforms making it easier to extend leases and purchase freeholds.

Labour’s plan to phase out leasehold for new flats is a major housing reform, aiming to give homeowners more control and eliminate unfair charges. However, questions remain about how existing leaseholders will be affected and whether commonhold will be widely adopted. For now, leasehold remains the standard form of flat ownership, and buyers should consider all factors before making a decision.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Sources

1. GOV.UK (2025). Beginning of the end for the ‘feudal’ leasehold system Available at: https://www.gov.uk/government/news/beginning-of-the-end-for-the-feudal-leasehold-system [Accessed 14 Mar. 2025]

2. GOV.UK (2025). Commonhold property. Available at:  https://www.gov.uk/guidance/commonhold-property#overview [Accessed 14 Mar. 2025].

3. GOV.UK (2022). Leasehold Reform (Ground Rent) Act 2022: Guidance for leaseholders, landlords and managing agents. Available at: https://www.gov.uk/government/publications/the-leasehold-reform-ground-rent-act-user-guidance/leasehold-reform-ground-rent-act-2022-guidance-for-leaseholders-landlords-and-managing-agents [Accessed 14 Mar. 2025].

‌All the information in this article is correct as of the publish date 27^th March 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

If your two-year fixed mortgage is about to expire, you might potentially be in for some positive news. Back in early 2023, many borrowers locked into deals with interest rates as high as 6.86%, as the Bank of England battled stubborn inflation with relentless interest rate hikes¹. Now, however, the tables have turned—and you could be paying much less when you remortgage.

The latest figures² show that the Bank of England cut its base rate to 4.5% in February 2025, marking a sharp drop from its peak of 5.25% last year. Lenders have responded swiftly, with big names like Santander and Halifax slashing their mortgage rates. In fact, Santander has just launched a 3.99% fixed-rate mortgage, the first sub-4% deal seen in months².

What’s Happening to Mortgage Rates?

Mortgage rates are significantly lower than they were during some of the highly volatile periods of the last couple of years, but have bobbed up and down, as markets have been hesitant in how quickly they expect rates to come down, according to industry analysts.³

According to Moneyfacts⁴, the average two-year fixed rate peaked at 6.86% in 2023—one of the highest levels in more than a decade. But as of February 2025, some of the best deals are now hovering between 4.13% and 4.23%, though this is still higher than the 2.25% average seen in 2021 when, interest rates were at historic lows⁵.

Why Mortgage Advice Matters More Than Ever

Securing a mortgage deal isn’t just about finding the lowest interest rate – it’s about ensuring the mortgage works for your personal circumstances now and in the future. We’re here to help find you the deals that match your needs, from a comprehensive panel of lenders across the marketplace.

With such a wide range of lenders, and deals that fluctuate regularly, navigating the mortgage market alone can be overwhelming, so it’s worth getting in touch so we can help you on the journey to find a deal that most closely fits your circumstances, and long-term goals.

Protecting your Lifestyle

The advice doesn’t just stop there. We’re also passionate about keeping you and your family protected. Afterall, a mortgage is one of the biggest financial commitments you’ll make, but what happens if something unexpected occurs? A home without protection is like buying a Ferrari without brakes – it looks great, but if something goes wrong, you’re at serious risk.

We can help you look at the fuller picture, including options for insurance and protection, so you and your family can remain financially secure, despite what life tries to throw your way.

What Should You Do If You’re Remortgaging?

If your current deal expires in the next six months, don’t wait until the last minute. Many lenders allow borrowers to lock in a new rate now, which means you can secure today’s lower rates while keeping an eye on further potential drops.

Consider these steps:

• Compare current rates: The best deals can disappear quickly, so acting fast could save you money. Take a look at our mortgage calculator, or get in touch with us today.
• Two-year or five-year fix? A shorter fix gives flexibility if rates drop further, but a five-year fix locks in stability.
• Speak to a mortgage expert: Professional advice ensures you secure the right mortgage for your financial future.

Final Thought – Act Before It’s Too Late

The mortgage market is shifting rapidly, and while rates have fallen, they may not stay this low forever. If you’re among the millions remortgaging this year, securing a deal now could mean a substantial saving, so don’t get caught out, and speak to us today to see how we can help to find the most suitable deal for your needs.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Sources

1. The Guardian (2023) Average UK two-year fixed mortgage rate drops below 6% to six-month low. Available at: https://www.theguardian.com/money/2023/dec/08/average-uk-two-year-fixed-mortgage-rate-drops-below-6-per-cent-six-month-low [Accessed 12^th Feb 2025]
2. The Guardian (2025) Boost for UK borrowers as Santander ‘fires starting gun’ on mortgage price war. Available at: https://www.theguardian.com/money/2025/feb/11/boost-uk-borrowers-santander-fires-starting-gun-mortgage-price-war [Accessed 12^th Feb 2025]
3. Moneyweek (2025) Will mortgage rates fall this year?. Available at: https://moneyweek.com/personal-finance/mortgages/latest-UK-mortgage-rates [Accessed 12^th Feb 2025]
4. Moneyfacts (2023) Moneyfacts Year in Review 2023 – Mortgages. Available at: https://www.moneyfactsgroup.co.uk/media-centre/consumer/moneyfacts-year-in-review-2023-mortgages [Accessed 12^th Feb 2025]
5. This is Money (2025) What next for mortgage rates – and how long should you fix for?. Available at: https://www.thisismoney.co.uk/money/mortgageshome/article-1687576/What-mortgage-rates.html [Accessed 12^th Feb 2025]

All the information in this article is correct as of the publish date 27^th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

For most homeowners, a mortgage is the biggest financial commitment they will ever make. It’s a long-term promise – one that provides security, stability, and a future for your family. But what happens if you suddenly can’t make your payments?

Many people assume that if the worst happens, the government will step in to help. The reality? State support is minimal, delayed, and, in some cases, simply another loan.

The question isn’t whether financial risks exist – it’s whether you are prepared for them.

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The Harsh Truth: What Government Support Really Looks Like

If you lost your income due to illness or redundancy, you might expect financial help. But as the figures below show, state support falls far short of what’s needed to cover mortgage repayments.

Benefit	Reason	Eligibility	How Much is Paid?	For How Long?
Statutory Sick Pay (SSP)1	Illness preventing work	Employed only	£116.75 per week (Current rate)	Up to 28 weeks
Employment and Support Allowance (ESA)2	Illness or disability preventing work	Employed & self-employed	Up to £90.50 per week (after assessment)	Ongoing (depends on severity)
Statutory Redundancy Pay3	Being made redundant	Employees with 2+ years’ service	Based on age & length of service	One-off payment
Universal Credit4	Low income or unemployment	Subject to means testing	Varies	Ongoing
Support for Mortgage Interest (SMI)5	Struggling with mortgage repayments	Must own a home/shared ownership property and receive selected benefits5	Loan covering interest only (not capital repayments)	Loan repayable when property is sold

When the average UK mortgage repayment is now over £1,400 per month⁶, it’s clear that government benefits simply don’t go far enough.

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Why Government Support is Insufficient

1. Payments Are Too Low

• Statutory Sick Pay (SSP) is currently just £116.75 per week—or £467 per month. That barely covers food, let alone a mortgage.¹
• Even if you qualify for Employment and Support Allowance (ESA), you’ll receive a maximum of £90.50 per week (or £138.20 if part of a support group).²
• Universal Credit varies based on income and savings, meaning many homeowners won’t receive enough—or anything at all.⁴

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2. The Waiting Period is Too Long

Even if you do qualify, help doesn’t arrive immediately.

• Universal Credit can take at least five weeks to process—by then, you could already be in arrears.⁴
• Support for Mortgage Interest (SMI) requires you to be on benefits for several months before it kicks in.⁵

If you don’t have a financial backup, your mortgage lender won’t wait for government payments.

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3. SMI is a Loan – Not Free Money

Many assume Support for Mortgage Interest (SMI) is a grant. It isn’t.

• SMI only covers interest—not the mortgage itself.⁵
• It’s a loan that must be repaid when you sell your home.
• It adds to your debt, rather than reducing it.

If you’re already in financial trouble, taking on another loan won’t help.

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4. Redundancy Pay Won’t Last

Statutory Redundancy Pay is capped and based on length of service³. Even if you receive a lump sum, it’s often not enough to cover mortgage repayments for more than a few months.

If you’re out of work for longer, you need another plan.

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5. No Support for the Self-Employed

If you’re self-employed, your safety net is even thinner.

• Self-employed workers don’t qualify for Statutory Sick Pay.¹
• ESA and Universal Credit exist, but they are means-tested and payouts are low.^2,4

If your business slows down or you can’t work, you’ll have to rely on savings or personal protection.

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How to Actually Protect Your Home

The government won’t save you if you can’t pay your mortgage. That’s why every homeowner must take responsibility for their own financial security.

1. Income Protection Insurance: Replacing Your Salary When You Can’t Work

If you became too ill or injured to work, how would you pay your mortgage?

Income Protection Insurance replaces a portion of your salary—typically 50-70% of your pre-tax income—until you can return to work⁷.

• Covers short-term illness or injury.
• Pays out much more than Statutory Sick Pay.
• Kicks in as early as four weeks after you stop working.

Unlike state benefits, this ensures you can continue to meet your mortgage payments without financial stress.

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2. Critical Illness Cover: A Financial Lifeline for Serious Illness

What if you were diagnosed with cancer, suffered a stroke, or had a heart attack?

Critical Illness Cover provides a tax-free lump sum payout if you develop a serious medical condition covered by your policy⁸.

• Pays out quickly, ensuring financial security.
• Covers long-term conditions that prevent you from working.
• Can be used to clear your mortgage, cover bills, or pay for medical treatment.

Many homeowners assume they’ll always be able to work—but serious illness can happen to anyone.

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3. Life Insurance: Protecting Your Family’s Future

Would your family be able to keep your home if you passed away?

Life Insurance ensures that your mortgage is paid off, so your loved ones aren’t left struggling.⁹

• Pays out a lump sum to clear your mortgage debt.
• Prevents forced sales or repossession.
• Can be set up as a joint policy to protect both partners.

For families, this is one of the most important protections you can have.

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4. Putting Life Insurance in Trust: Ensuring Fast Payouts

Many people don’t realise that life insurance payouts can be delayed by probate—sometimes for months.

By putting your life insurance in trust¹⁰, you:

• Ensure a faster payout to your family.
• Keep the money separate from inheritance tax.
• Decide exactly who receives the funds and when.

This simple step ensures your loved ones get financial support when they need it most.

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5. Writing a Will: Securing Your Home for Your Family

If you die without a will, your estate may not go to the people you intended¹¹.

• If you’re unmarried, your partner may have no legal right to your home.
• The probate process can be delayed for months or even years.
• Without proper estate planning, inheritance tax could eat into your assets.

A legally valid will ensures your home and finances go to the right people.

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Final Thoughts: Don’t Leave It to Chance

The truth is, government support won’t save your home.

• State benefits are too low.
• Help takes too long to arrive.
• Most schemes don’t cover your full mortgage.

That’s why every homeowner needs a personal safety net.

Take Action Today

• Check your financial protection—do you have a plan in place?
• Review your mortgage and savings—can you handle an income shock?
• Speak to a mortgage and protection adviser—ensure you have the right cover.

If you’re unsure whether your home and family are financially secure, get in touch today for a free consultation.

Because when life throws the unexpected your way, the right protection is the difference between keeping your home and losing it.

Sources

1. Gov.uk (2025) Statutory Sick Pay. Available at: https://www.gov.uk/statutory-sick-pay [Accessed 20^th Feb 2025]
2. Gov.uk (2025) Employment Support Allowance. Available at: https://www.gov.uk/employment-support-allowance [Accessed 20^th Feb 2025]
3. Gov.uk (2025) Redundancy: your rights. Available at: https://www.gov.uk/redundancy-your-rights/redundancy-pay [Accessed 20^th Feb 2025]
4. Gov.uk (2025) Universal Credit. Available at: https://www.gov.uk/universal-credit [Accessed 20^th Feb 2025]
5. Gov.uk (2025) Support for Mortgage Interest (SMI). Available at: https://www.gov.uk/support-for-mortgage-interest [Accessed 20^th Feb 2025]
6. Unbiased (2025) What is the average monthly mortgage payment in the UK?. Available at: https://www.unbiased.co.uk/discover/mortgages-property/buying-a-home/what-is-the-average-monthly-mortgage-payment-in-the-uk [Accessed 20^th Feb 2025]
7. Citizens Advice (2025) Income protection insurance. Available at: https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/income-protection-insurance/ [Accessed 20^th Feb 2025]
8. Citizens Advice (2025) Critical illness insurance. Available at: https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/what-critical-illness-insurance-is/ [Accessed 20^th Feb 2025]
9. Moneyhelper (2025) What is life insurance? https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-life-insurance [Accessed 20^th Feb 2025]
10. Which? (2024) How to write life insurance in trust. Available at: https://www.which.co.uk/money/insurance/life-insurance-and-protection/how-to-write-life-insurance-in-trust-ancNf5h4ygvJ [Accessed 20^th Feb 2025]
11. Citizens Advice (2025) Making a will. Available at: https://www.citizensadvice.org.uk/family/death-and-wills/wills/ [Accessed 20^th Feb 2025]

All the information in this article is correct as of the publish date 27^th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.