Mortgage Market Snapshot – October 2025
The mortgage market has remained somewhat stable over the last month. According to Moneyfacts, average mortgage rates on the overall two and five-year fixes rose at the start of October by 0.02 percentage points, to 4.98% and 5.02%, respectively. Given how volatile mortgage rates have been in the last few years, this is a fairly negligible rise.

The Sterling Overnight Index Average (SONIA) rate, is the benchmark which mortgage lenders generallybase their mortgage rates on. This is potentially a better indication of how mortgage rates are moving than the Bank of England (BoE) base rate. The SONIA rates have dropped since this time last month, by around 0.2% for both two year and five-year money.

We are still seeing high street banks decreasing rates across their product ranges, gradually. However, it is never a sensible idea to try and ‘time the market’. Rates could increase tomorrow – we can’t predict what is going to happen.

UK Economic Update – October in Brief
Inflation: Remained at 3.8% in September. This is the third month in a row that the inflation figure has been 3.8%. This is both good and bad in my opinion, in equal measures. Good – it hasn’t increased further. Bad – it’s not dropping towards the 2% target. Outcome – nothing changes.

BoE Base Rate: Remains at 4%. The next base rate decision is due on 6 November. There is little expectation the base rate being cut. A recent poll of investors by Reuters found investors are betting the BoE is likely to make its next rate cut in February.

Budget: The Autumn budget is due to be delivered by the chancellor on 26 November. There has been a lot of talk in the media about what might be brought in, including a revamp of the stamp duty tax. Ultimately, we don’t know what is going to happen until we hear the budget in November, and I will aim to provide some more detail in my next newsletter following the budget.

Long-Term Fixed Mortgage Products
Over the last couple of years, we have seen positive innovation in the mortgage market. There are a number of clever products available. An interesting one is the Skipton Building Society ‘Track Record Mortgage’, which is designed for clients privately renting and uses a track record of private rental payments to help with mortgage affordability. Another is the Nationwide Building Society ‘Helping Hands’ product, which provides increased lending ability to first time buyers that satisfy certain criteria.

However, a particularly interesting development recently has been the introduction of long-term fixed mortgage products. New lenders such as Perenna and April Mortgages are now offering long-term fixed-rate mortgages — with options to lock in your rate for 20, 30 or even up to 40 years.

These products allow you to secure your monthly payments for decades, offering complete protection against future interest rate rises. For many, that level of certainty can make budgeting much easier, especially for families planning ahead or those on a fixed income. Some lenders even allow greater borrowing potential because the predictable payments make long-term affordability clearer from the outset.

Of course, there are considerations. The initial rate on a long-term fix may be slightly higher than a shorter deal, and there can be early repayment charges if you decide to move or repay early. It’s also important to think about how long you expect to stay in your property and whether the mortgage can be ported if you move home. It is worth noting that on both these points specifically, the lenders we work with have options for porting the mortgage to a new product and repaying the loan early.

Please let me know if you’d like to find out more about long-term fixed mortgages, and how they could suit your situation.

Protection Corner – The Importance of Critical Illness Cover
When we consider financial security, we may focus on income, savings and our mortgage. But what would happen if you were diagnosed with a serious illness and couldn’t work? That’s where critical illness cover comes in. It provides a tax-free lump sum if you’re diagnosed with one of a list of specified serious medical conditions, such as cancer, heart attack or stroke. This payout can help you maintain your lifestyle, cover household bills or pay off your mortgage while you focus on recovery.

Modern critical illness policies are much more flexible than they used to be. Many now cover a wide range of illnesses and offer additional benefits, such as partial payouts for less severe conditions, or cover for children. The idea is simple — if the unexpected happens, you have a financial cushion in place so you can focus on getting better, not on worrying about money.

It’s worth remembering that critical illness cover isn’t just for those with dependants or large mortgages. Anyone with regular outgoings or financial commitments could benefit. The lump sum could help with lost income, specialist medical treatment, or adapting your home if needed. Because the policy pays out on diagnosis rather than death, it can provide much-needed support at a time when you need it most.