Here’s your round-up of the latest updates affecting homeowners, buyers, and expats alike.

Inflation Drops to 2.6% – What It Means for Your Mortgage, Savings & Pension

UK inflation has dipped to 2.6%, inching closer to the Bank of England’s 2% target. While that’s promising news for the economy, some experts caution that inflation could creep up again later this year. Still, this decrease opens the door for potential action on interest rates.

So, what could this mean for interest rates?
The lower inflation figure boosts the chances of a base rate cut to 4.25%, possibly as early as May. With only marginal economic growth forecast for 2025, the Bank of England may use rate reductions to stimulate recovery.

What about mortgages?

• Tracker or standard variable rate mortgages: Any base rate changes will impact you directly—so a cut would mean lower monthly payments.
• Fixed-rate mortgages: These are influenced more by future rate expectations. Lower inflation often signals cheaper fixed-rate deals, so we could see more competitive rates in the coming weeks.

Savings & pensions:
Falling interest rates can mean lower returns on savings, but also help pension funds grow more steadily. If you’re planning for retirement or relying on savings income, it’s worth reviewing your strategy in light of these changes.

New 90% LTV Product for UK Expats – A Welcome Boost for Overseas Buyers

In other positive news, a high street lender has just launched a 90% loan-to-value (LTV) mortgage for UK expats—a significant step for those living abroad who are looking to invest in or return to the UK property market.

Why is this a big deal?

• Historically, expat mortgages required large deposits and came with limited options.
• A 90% LTV product means only a 10% deposit is needed, making it far more accessible for UK citizens abroad to get onto (or back onto) the property ladder.
• Whether you’re buying a home for family in the UK, investing in a rental property, or planning your return, this could open the door to better flexibility and affordability.

High Street Lenders Increase Maximum Loan-to-Income Ratios

And finally, more good news for prospective buyers and those looking to upsize: several high street lenders have recently increased their maximum loan-to-income (LTI) multiples.

What does this mean for you?

It’s a timely opportunity to reassess your budget and see what kind of home or investment might now be within reach.

You could potentially borrow more than before, based on your income.

This is particularly helpful if you’ve seen your earnings rise or if you’re struggling to match income with property prices in your desired area.

Every situation is unique, and with these new changes, your borrowing potential may be higher than you think—especially if you’ve not checked in a while.

If you’re curious about:

• How falling inflation could affect your current mortgage deal,
• Whether you qualify for the new expat mortgage,
• Or how much you might now be able to borrow with the updated LTI caps…

Reach out to us today for a friendly, no-obligation chat. We’ll help you navigate the options and find the right path for your mortgage goals.

Annabelle Bezant, April 2025