Nathan Lamb is a Mortgage and Protection Adviser with Bridge of Don Mortgage and Financial Solutions. He worked for two high street Banks for almost 30 years and has been a Mortgage Adviser since 2018. Nathan works closely with the team at Northwood and has access to an extensive range of banks, building societies and insurance providers to help ensure clients receive the most appropriate advice when arranging a new mortgage.
Can you provide a brief overview of the latest mortgage news?
After the availability of incredibly low interest rates from early 2009 to early 2022, the last couple of years have been quite tough for borrowers with interest rates getting back to pre-2009 levels.
However, on August 7, The Bank of England reduced the Base Rate to 4%, the fifth 0.25% reduction in the last 12 months which has meant that although mortgage rates are still not as low as pre-2022, they are quite a bit below where they were in 2023.
When will we see the next reduction in the Bank of England Base Rate?
The Bank of England is due to meet two more times this year on the 6th of November and on the 18th of December. While no-one can predict with any certainty what will happen with the Base Rate, the data available to us now would suggest it will probably remain at 4% for the rest of the year.
One of the main reasons for this is that at the time of writing, inflation in the UK is 3.8%, which is higher than the Bank of England’s target rate of 2% and we don’t expect to see any reductions in the Base Rate until inflation reduces closer to the 2% target rate.
We are optimistic of further Base Rate reductions in 2026; however, there are no guarantees of this.
What are the lowest interest rates available now?
The lowest interest rate available when setting up a mortgage to buy a property in Scotland (at the time of writing 25 Sept 25) is a two-year fixed rate at 3.82%. This interest rate has a £999 fee payable to the lender and is available to clients borrowing at 60% or less.
There are mortgages available without paying a fee to the lender and the lowest interest rate available at the time of writing is a two-year fixed rate at 4.02% (this mortgage is only available when buying a “new-build” home with an EPC rating of A or B).
Please note. With any mortgage application, obtaining a particular interest rate is dependent on someone’s own circumstances and therefore it is not guaranteed that the rate mentioned would be available to everyone.
What is your advice to anyone looking for a mortgage just now, including first time buyers?
The first thing I would recommend is to speak to a mortgage adviser as early in the process as possible to find out how much you can borrow and to get an “agreement in principle”. This doesn’t cost anything with Bridge of Don Mortgage and Financial Solutions and doesn’t commit you to anything either. It does, however, let you know how much you could potentially borrow so you know the types of properties and prices you can consider. The mortgage adviser should also let you know what your monthly payments could potentially cost so you know what would be affordable.
Do you think the lower interest rate will stimulate the market in Aberdeen and Aberdeenshire
The easy answer to this is, yes; however, I firmly believe that people buy property when the time is right for them, regardless of where interest rates are or where the housing market is. Lower interest rates certainly won’t do any harm.
Any final advice?
Some people are tempted to go to their own Bank to set up a mortgage, but I would always recommend speaking to a mortgage adviser instead. The main reasons for this are:
- Your own bank’s interest rates may be relatively high in comparison to other lenders, whereas a mortgage adviser can search through lenders to get the most appropriate mortgage deal for you;
- Some properties are made with “non-traditional” construction, and your own bank may not even be prepared to consider a mortgage against one of these properties. A mortgage adviser should be able to find lenders that can assist and then provide the right advice to get the most appropriate mortgage from those lenders.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but we estimate it will be £995 which is payable at application
Nathan Lamb, trading as Bridge of Don Mortgage and Financial Solutions, is an Appointed Representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
