Property & Mortgage Outlook – January 2022


As noted in our recent article, average UK property prices hit a new record high at the end of 2021, making it the strongest calendar year for price growth since before the Global Financial Crisis (GFC) in 2008.

As demand continues to outstrip supply, the strength in prices looks set to continue for another few months. However a lack of properties coming into the market is likely to impact activity levels. According to the Bank of England, mortgage approvals have returned to pre-pandemic levels and the supply of homes coming onto the market for sale has been falling since April, according to RICS.

Best Buys* (as of 11 January 2022)

Initial Rate Description Subsequent Rate Overall Cost For Comparison (APR) Early Repayment Charge Max Loan Fee
1.00% 2 Year Tracker – Penalty-Free 3.74% 3.30% None £2m £999
1.11% 2 Year Fix 3.74% 3.30% 2% Years 1 & 2 £2m £999
1.36% 5 Year Fix 4.49% 3.30% 5% Years 1, reducing by 1% each year to 1% in Year 5 £2m £1,999
0.99% 2 Year Fix (Buy to Let) 4.74% 4.50% 1.5% Year 1, 1% Year 2 £1.5m 2%


With bank base rate now likely to be past the bottom of the current cycle, it may be a prudent time to review your existing mortgage arrangements. In addition, first time buyers can now get a foot on the housing ladder with a deposit of just 5% at a most competitive rate of 2.99% fixed for five years**. Options are also available for joint borrower sole proprietor.


Following the detrimental tax changes in the rental sector, most higher rate taxpayers are now considering putting their investment properties into a limited company. This route can offer more favourable tax treatments as all the costs, including mortgage interest can be set against income. Property assets can also be passed down a generation mitigating inheritance tax.


Many borrowers with equity release mortgages may be unaware that they are able to switch lenders. In fact, the payable rate on these products has more than halved over the past five years, making a compelling case for all existing arrangements to be reviewed.

Whether you are coming to the end of your mortgage product or keen to compare your current rate to the best available elsewhere, please contact your adviser who can put you in touch with our mortgage partners.

* Lending criteria restrictions apply to all products, always seek independent advice.

** Available as of 11th January 2022.

Articles on this website are offered only for general information and educational purposes. They are not offered as, and do not constitute, financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.

Past performance is not a guide to future performance and may not be repeated. Capital is at risk; investments and the income from them can fall as well as rise and investors may not get back the amounts originally invested.

Your home may be repossessed if you do not keep up with payments on your mortgage.

You are now departing from the regulatory site of Finura. Finura is not responsible for the accuracy of the information contained within the linked site.

Source: Professional Mortgage Services & Savills.


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