It’s been a busy summer for the housing market – and as a local mortgage broker in Cramlington, Newcastle and across Northumberland, here’s what you need to know.
Bank of England Rate Cut
In August, the Bank of England reduced the base rate from 4.25% to 4%. This is the lowest level in two years and the fifth cut since August 2024. The decision was close, with five Monetary Policy Committee members voting in favour and four voting to hold rates.
Although inflation was 3.8% in July (above the 2% target), the Bank expects this to ease. Future cuts are likely to be more cautious.
What This Means for Mortgages
Changes to Bank Rate directly impact the cost of borrowing. With around 900,000 mortgage deals ending in the second half of 2025, many homeowners could benefit from slightly reduced rates. However, as Zoopla notes, the cost of fixed-rate mortgages already factors in future changes, so the effect may be limited.
If you’re based in Cramlington, Newcastle or wider Northumberland, it could be a good time to review your mortgage options and see whether switching to a new deal could save you money.
Affordability is Improving
Housing affordability is gradually getting better. Strong income growth, slower house price growth and easing mortgage rates have all helped. The average UK home now costs 5.75 times income, compared to 6.9 in 2022 – the lowest level in over a decade.
With more high loan-to-value products becoming available, first-time buyers in Northumberland and the North East may find getting onto the ladder a little easier.
House Prices See Modest Growth
House price growth picked up slightly in July, with a 2.4% annual increase and a 0.6% month-on-month rise. The average UK home is now valued at £272,664. While growth is modest, it shows resilience in the market following Stamp Duty reforms in April.
Market Outlook
Nationwide’s Chief Economist, Robert Gardner, noted that despite global economic uncertainty, the UK housing market remains supported by strong underlying conditions. If recovery continues, activity is likely to strengthen into the end of the year.
Looking for Mortgage Advice in Cramlington, Newcastle or Northumberland?
At MortgagePal, I help local homeowners and first-time buyers make sense of the market and secure the right mortgage. Whether you’re remortgaging, moving home or buying your first property, I’ll guide you through the process and explain your options clearly.
📍 Based in Cramlington, working across Newcastle and Northumberland.
✅ Personal service – one point of contact
✅ Access to a wide panel of lenders
✅ Clear, jargon-free advice
Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.
