Santander Monthly Mortgage Market View – Frances Haque, Chief Economist at Santander UK

06 February 2025

Frances Haque, Chief Economist at Santander UK, comments:

“The cut to the Bank of England base rate will come as some light relief to those homeowners with fixed rate mortgages maturing this year, and should see a boost to overall household confidence, following a period of decline at the end of 2024. While this is a positive story overall, with rates sitting lower than they were two years ago, borrowers coming off five-year fixed terms will still be moving to rates significantly higher than their current rate.

“With house prices set to continue to rise, albeit at a slower pace, and mortgage approvals remaining strong, spurred on by the upcoming change to stamp duty, we are however looking towards a more buoyant housing market as we progress through the year.

“Our forecasts are still pointing to a further three cuts this year – with the next to come in May, allowing the Bank of England to strike a balance between containing inflation, while boosting economic growth, and with that, supporting household confidence and the mortgage market.”