Your Insight to the mortgage market

June 2025 Mortgage Market Insight: Is Stability on the Horizon or Are More Changes Coming?

If you’re planning to buy, sell, or remortgage in areas like Beckenham, Park Langley, or Orpington, staying informed about mortgage rate trends is more important than ever. At Integra-Estates, we’re committed to giving you honest, clear advice rooted in facts — not headlines. Here's what you need to know this June.

What’s Happening with the Base Rate?

On 8 May 2025, the Bank of England reduced the Base Rate to 4.25%, a response to a surprising jump in inflation, which rose from 2.6% to 3.5% in April. Although a rate cut may seem like good news, the increase in inflation creates uncertainty, and lenders continue to respond cautiously.

The Base Rate is reviewed every six weeks, meaning further movement could be on the cards — either up or down — depending on how inflation, employment, and economic confidence perform in the coming months.

Current Mortgage Rates – June 2025

According to the latest Podium data, here’s how mortgage products stand as of 13 June 2025:

Average 2-year fixed: 4.64%

Average 5-year fixed: 4.61%

Lowest 2-year fixed available: 3.85%

Lowest 5-year fixed available: 3.88%

For buyers with larger deposits, especially in areas like Chislehurst, Petts Wood, or Locksbottom, rates are even more favourable. Those with 40% deposits (60% LTV) can access rates from 3.97% (2-year) and 4.02% (5-year).

Meanwhile, first-time buyers in locations such as Penge, Anerley, Catford, or Forest Hill, who may only have 5–10% deposits, can expect rates closer to 5.36% (2-year) and 5.22% (5-year).

What Does This Mean for Monthly Repayments?

Let’s break it down. For a typical first-time buyer property at £228,551 (using an 85% mortgage over 25 years):

Monthly repayment = approx. £1,085 at today’s 5-year fixed rate

This makes it vital for buyers in Sydenham, Bickley, or Eltham to understand the power of deposits and term choices when searching for the best mortgage fit.

Are Rates Likely to Rise or Fall?

Many economists believe we could see the Base Rate drop again by late 2025 — potentially down to 4% — assuming inflation cools. However, there are no guarantees. The mortgage market is influenced by several factors including:

Ongoing inflation pressures

Global economic shifts

Political stability (especially with a looming General Election)

For home buyers across Mottingham, Lee, New Eltham, and even Greenwich Village or Dulwich, timing will be key. A rate hold or drop could boost affordability — but waiting too long may see lenders become more selective.

So, Is Now a Good Time to Act?

In a word — possibly. If you're ready financially and have a solid deposit, today's rates still offer better value than we saw six months ago. And with property prices stabilising in sought-after areas like Blackheath, Greenwich, and Dulwich Village, many buyers are choosing to act now before competition rises later in the year.

Even for remortgagers in Bromley, Beckenham, or Park Langley, it’s worth exploring current deals rather than risk a rate hike in the coming months.

📞 Call us on 0203 870 0000 📧 Email: [email protected] 🌍 Or visit www.integra-estates.com

Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Early Repayment Charges may apply if you leave your current mortgage during the fixed-rate period. Integra-estates is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser. No responsibility is taken for any misprint or error.