How brokers can support FTBs during shifting market conditions

June 2025

Interest rates

In response to the economic downturn, the Bank of England has reduced interest rates, with average 2 and 5-year fixes dropping to 4.63% and 4.60% in May¹. Lenders have taken the opportunity to drop rates, offering competitive deals for FTBs.

However, ongoing cross-border trade deals and tariff agreements means the outlook for mortgage rates is still uncertain. Looking ahead, while further rate reductions are expected this year, the Office for Budget Responsibility (OBR) forecasts average rates will rise gradually from 3.7% (2024) to a peak of 4.7% (2028), maintaining at this level until 2030².

Inflation and household budgets

As inflation remains above the UK target of 2%, it continues to impact household finances. Higher living costs have reduced purchasing power, making it increasingly hard for FTBs to save for their deposits and manage projected repayments. For many, the challenge lies in balancing affordability with long-term financial resilience.

House prices and market accessibility
Since 2014, average house prices have risen 40%, from £191,986³ to £268,000⁴. Despite economic uncertainty, the market remains strong and modest price growth of 2–4% is forecast in­ 2025 due to strong demand and limited supply⁵.­­

Regional disparities remain clear. In London, FTBs face average prices of £556,000, whereas in contrast, the North East, face an average price of £160,000⁶.

Meanwhile, the changes to Stamp Duty have added pressure, with thresholds dropping from £425,000 to £300,000 as of April 2025. This has increased upfront costs for many buyers, further limiting accessibility to the market.

However, there are some positives for those looking to buy. The number of lower deposit mortgage deals (requiring 5% or 10% deposits) has reached the highest level since the financial crisis of 2008, according to Moneyfacts⁷, offering new opportunities for those with limited savings. There has even been the introduction of a limited number of 100% Loan to Value (LTV) mortgages.

Cost awareness

FTBs are often unaware of all the upfront costs included in the homebuying process. Brokers play a critical role in educating clients on the true costs of buying a home, highlighting less visible expenses such as legal fees, surveys and Stamp Duty. Early assessment of a buyer’s knowledge allows brokers to tailor their advice, ensuring buyers consider both long- and short-term decisions that may affect their financial stability as markets continue to shift.

Government and lender schemes

The government's pledge to build 1.5 million homes by 2030 may ease supply pressure, though the OBR estimates only 1.3 million will be delivered​⁸. Brokers can help their clients interpret these developments, guiding them towards current schemes that fit their circumstances.

FTB market insight 

Research by Moneyfacts reveals that the number of deals available at 90% and 95% Loan to Value (LTV) ratios has reached its highest level since 2008, coinciding with a noticeable fall in interest rates from April 2024⁹. As the market shifts, brokers expertise and experience in matching products to each buyer’s unique situation and lifestyle will ultimately secure FTBs the best products for them.

Brokers bring more than access to products, they bring insights. Understanding FTB client requirements (both in terms of mortgage and lifestyles) and providing them personalised up-to-date insights into changes that could affect them, is an increasingly important task for brokers during volatile market conditions. 

Reassurance in decision-making

Buying a home is a major commitment. In uncertain conditions, the role a broker plays is central to helping clients feel confident in their decision by offering reassurance alongside tailored and clear guidance. Although the market may be uncertain, their future does not need to be.

While policy changes and economic instability may present affordability challenges for FTBs, brokers play a key role in helping new buyers understand where the opportunities are and how to navigate the current turbulent market. Offering tailored advice on products and schemes and keeping them in the loop with policy updates can help them confidently step onto the property ladder in 2025. By guiding clients through testing times, brokers can build long-lasting client relationships and demonstrate their value as trusted advisors. 

1.  https://www.rightmove.co.uk/news/articles/property-news/current-uk-mortgage-rates/
2. https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/
3. https://landregistry.data.gov.uk/app/ukhpi/print?in%5B%5D=avg&&thm%5B%5D=property_status&from=2014-12-01&to=2022-08-01&location=http%3A%2F%2Flandregistry.data.gov.uk%2Fid%2Fregion%2Fengland&lang=en
4. https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/april2025
5. https://www.martyngerrard.co.uk/news-and-guides/property-news/property-market-news/uk-house-prices-projected-to-rise-by-4-in-2025-what-buyers-need-to-know/
6. https://www.gov.uk/government/news/uk-house-price-index-for-february-2025
7. https://www.bbc.co.uk/news/articles/ckgxdyyz8e1o#:~:text=The%20number%20of%20deals%20that,of%20the%20last%2017%20years.
8. https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/#:~:text=From%202025%2D26%20to%202029,per%20cent%20in%202029%2D30
9. https://www.moneyfactsgroup.co.uk/media-centre/group/choice-of-low-deposit-mortgages-rises-to-17-year-high/