How Current Interest Rates Are Affecting Mortgages in Stockport

MORTGAGES | 17.02.2025

We believe that Stockport is a standout location in the northwest. But how are mortgages being affected by current interest rates?

Last year was a rollercoaster for interest rates across the UK. While we saw interest rates decrease, they didn’t decrease by quite as much as was predicted, however, this has had a somewhat positive effect on mortgage rates across the UK. Here at Taylormade, we believe that Stockport is a standout location in the northwest. Its housing market caters to diverse preferences, offers a variety of property types, has an excellent location and transport links, and is popular with investors. But how are mortgages being affected by current interest rates? Keep reading to find out.

What’s Happening with Interest Rates in the UK?

Last year saw inflation finally hit its target of 2%, due to this, interest rates started to decline. In December 2024, however, the Bank of England held interest rates at 4.75%, leading many to believe there would be no further reductions to mortgage rates. The next Bank of England meeting will be on the 6th of February, which means until then, the direction of interest rates and, ultimately, mortgage rates will be unknown.

When and by How Much Could Interest Fall?

We can somewhat gauge the direction of interest rates by keeping an eye on inflation, which unfortunately did start to rise again toward the end of last year. This means that an increase in interest rates may be possible however, many industry experts believe otherwise. Goldman Sachs analysts announced their prediction of a cut as low as 2.75% for interest rates by the end of 2025, while Santander’s experts predict a fall to 3.75%, and Barclay’s predicting a drop of 3.5%.

How Are Mortgages Being Affected by Interest Rates?

Interest rates directly impact mortgage rates by influencing how expensive it is for lenders to borrow money, which they then pass on to homeowners and those seeking a mortgage in the form of higher or lower mortgage rates. Most mortgage lenders will use the Bank of England interest rate to measure where they should base their mortgage rates. Some will favour competition and lower their mortgage rates; others may prefer to play it safe and keep their rates the same or even increase them slightly.

Fixed Rate Mortgages - any change in base rate won’t immediately affect fixed-rate monthly payments, however, due to the ongoing fluctuations in interest rates, fixed-rate mortgages are much higher than they were.
Tracker Mortgages & SVR (Standard Variable Rate) Mortgages – the impact of the base rate of interest immediately impacts those on tracker and SVR mortgages. If industry predictions are correct and we are due to see more rate cuts into 2025, those on tracker and SVR mortgages will likely see the most benefit.

Several lenders started to reduce their mortgage rates toward the end of last year. Halifax cut their rates by up to 0.3% with their 3-year fixed, 60% LTV mortgage reduced to 4.41%. HSBC dropped its 2-year fixed by up to 0.16% and its 5-year fixed by up to 0.15%, and Leeds Building Society reduced rates across its mortgage range by up to 0.21%.

Thinking of Purchasing a Home or Remortgaging in Stockport?

Looking to purchase a home or remortgage in Stockport this year could be a wise move. Stockport currently has a thriving property market, and house prices sit within the UK average, meaning that if interest rates continue to fall, Stockport’s mortgage rates will hopefully follow suit.

How Interest Rates are Shaping House Prices in Stockport.

Low interest rates have been a driving force in growth in Stockport. More people entered the housing market due to lower borrowing costs, which increased the number of properties sold, especially in areas such as Hazel Grove and Heaton Moor. Due to a peak in interest rates in 2023, Stockport’s housing market faced challenges but if industry predictions are correct then Stockport is due a revitalisation.

Stockport Mortgages: Why We Recommend Purchasing a Home in Stockport in 2025.

Stockport is attractive to a diverse audience. Just 7 miles from Manchester city centre, and with convenient transport links, Stockport has an excellent location. It is also a town that is self-contained with great shopping facilities, bars, cafes, and restaurants and is popular with those looking to get onto the property ladder, purchase a family home, and investors. Regeneration and development are continual with new housing, retail sites, transport, and leisure outlets currently in the works. There is ample access to lush green spaces, and house prices sit below the national average. So, whether you’re looking for property in the urban area of Heaton Moor or around the endless canals and greenery of Marple, our specialist mortgage broker in Stockport can help.

Speak to Our Professional Mortgage Brokers in Stockport.

We are an independent mortgage broker in Stockport with access to the best mortgage rates on the market today, even when the mortgage market looks unsure. If you’re looking to buy in Stockport, remortgage, or begin your investment journey, our expert mortgage brokers in Stockport can help. Contact Taylormade today, your go-to mortgage broker in Stockport, operating throughout the UK.

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