Stepping onto the property ladder is an exhilarating journey, yet it comes with its share of complexities, especially concerning mortgage rates. At Riviera Mortgages in Torquay, we understand that the current landscape of mortgage rates in England can seem daunting.

This blog provides a straightforward overview of what to expect from mortgage rates this year and offers expert advice to help first-time homebuyers navigate these waters confidently.

Current Trends in Mortgage Rates

Mortgage rates are influenced by various factors, including economic trends, policy decisions from the Bank of England, and competitive forces within the lending market. In 2025, mortgage rates in England have shown variability, influenced by global economic uncertainties and domestic economic policies. For first-time buyers, this means it’s crucial to remain informed and prepared when planning your mortgage.

Choosing Between Fixed and Variable Rates

• Fixed-Rate Mortgages: Opt for a fixed-rate mortgage if you value consistency. This type of mortgage keeps your interest rate steady over a specified period, allowing for predictable monthly payments and easier budgeting.
• Variable-Rate Mortgages: These mortgages might offer lower initial rates but remember, the rate can vary, typically in response to changes in the lender’s standard variable rate (SVR) or an index they follow. This option requires a readiness to handle potential rate increases over time.

Securing the Best Mortgage Rate

1. Enhance Your Credit Score: A robust credit score can significantly improve your chances of securing favourable mortgage terms. Make sure your credit history is accurate, and take steps to improve your score if needed.
2. Manage Your Debt-to-Income Ratio: Lenders evaluate your debt-to-income ratio to assess your lending risk. Reducing this ratio by clearing existing debts can place you in a better position to receive more competitive rates.
3. Increase Your Deposit: A larger deposit generally reduces the risk for the lender and can lead to more competitive interest rates. Try to save a deposit that is at least 10-20% of your property’s value.
4. Shop Around: Explore various offers. Compare mortgage rates from different lenders to ensure you are getting the best deal possible. Utilise online tools and calculators to aid your evaluation.

Programmes for First-Time Buyers

Several government schemes are available to help first-time buyers in England, such as the Help to Buy and Shared Ownership schemes. These can offer beneficial terms like lower interest rates and deposit requirements, easing your entry into the housing market.

Navigating mortgage rates as a first-time buyer can be challenging, but with the right guidance and a clear understanding of the market, you can make informed decisions. At Riviera Mortgages, we are committed to providing you with expert advice and support throughout your home-buying process.

Are you ready to take your first steps towards homeownership? Contact Riviera Mortgages in Torquay today for tailored advice and guidance on finding the most suitable mortgage rates and terms for your situation. Let us help you make your dream home a reality!