As we approach the end of June 2025, the UK financial landscape is experiencing notable shifts in mortgage rates and investment markets. Here’s a comprehensive overview to keep you informed.
⚖️ Bank of England Base Rate Review (19 June 2025)
- Decision: The MPC voted 6–3 to hold the Bank Rate at 4.25% on 19 June, citing persistent inflation and global uncertainty .
- Inflation & labour market: May’s CPI fell slightly to 3.4%, but services inflation remains sticky (~4.7%) . The labour market is gradually cooling, easing some concerns .
- Global risks: Geopolitical tensions (e.g., Israel‑Iran, US trade policy) and rising energy costs were key factors in the hold .
- Outlook: Governor Bailey and Deputy‑Governor Lombardelli indicated a “gradual downward path” is expected; market pricing suggests a 59–82% chance of a cut in August, with further easing possible later in 2025 (potentially towards ~3.75%) .
? Equities & Investment Markets (Late May–June 2025)
- FTSE 100 performance:
– Reached all-time highs in early June, peaking around 8,884 before a mild dip .
– On 20 June, it modestly rose (~+0.5%) to about 8,834, buoyed by easing tariff worries and US deliberation over Middle East policy . - Sector highlights: Financials (Standard Chartered, Barclays) and travel stocks rallied; energy stocks slipped as oil prices eased .
- Market drivers:
– Global geopolitical risks remain—but UK markets have stayed relatively resilient .
– Expectations of upcoming rate cuts have reinforced investor confidence . - Outlook: Caution prevails—markets are watching inflation, BoE guidance, energy, and geopolitical shifts; however, they’re positioning for easing monetary policy later this year.
First Time Buyers Fixed Rates
| Lender | Rate | LTV | Rate Type |
| Nationwide | 4.85% | 95% | 2-year fixed |
| Santander | 4.47% | 90% | 2-year fixed |
| Santander | 4.85% | 95% | 5-year fixed |
| Santander | 4.47% | 90% | 5-year fixed |
Remortgage Fixed Rates
| Lender | Rate | LTV | Rate Type |
| TSB | 4.14% | 75% | 2-year fixed |
| NatWest | 3.92% | 60% | 2-year fixed |
| Barclays | 4.06% | 75% | 5-year fixed |
| NatWest | 3.95% | 60% | 5-year fixed |
| Nationwide | 4.49% | 75% | 10-year fixed |
Buy to Let Purchase Rates
| Lender | Rate | LTV | Rate Type |
| Kensington SPV | 4.69% | 75% | 5-year fixed |
| HSBC | 4.19% | 75% | 5-year fixed |
PRODUCTS CORRECT AS OF 20.06.25
ALL MORTGAGE RATES ARE SUBJECT TO CREDIT STATUS, INCOME AND AFFORDABILITY.
ARRANGEMENT FEES AND EARLY REPAYMENT CHARGES MAY APPLY TO THESE PRODUCTS THESR ARE FOR ILLUSTRATIVE PURPOSES OF RATES. PLEASE CONTACT AN ADVISER FOR A RECOMMENDATION TO MEET YOUR CIRCUMSTANCES. ALL VIEWS IN MARKET COMMENTARY ARE THE PERSONAL OPINIONS OF THE AUTHOR.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
