IFA Magazine – UK Spring Statement 2025
Among the experts featured is Luther Yeates, Head of Mortgages at Orton Financial. His comments provide a clear picture of what both lenders and borrowers can expect in the months ahead. Yeates explained: “In normal times, you would expect rates to be cut, stimulating growth. The Bank of England is bound by its inflation target. So, they will keep the base rate high, which in turn creates a high-interest rate environment.
“If the economic forecast is pessimistic, lenders are likely to price in any perceived economic downturn, as they are more likely to see an increase in the number of defaults, or borrowers who require additional help. During COVID, many lenders were crippled by the influx of requests for support – something they would actively seek to avoid in the future. Higher rates will keep the volume of transactions down.
“There is never a good time to buy. Instead, there is simply the right property for you, at the right price. If buyers wait for interest rates to improve, we will see accelerated house prices. It is a buyers’ market at present, with uncertainty going forward.”
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