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Interactive Diagnostic


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In our quest to provide you with the most valuable market insights, we spoke to Chris Hewitt, a seasoned expert from CAPC Mortgages. Chris has his finger on the pulse of the mortgage market and shares his expertise on the current landscape for residential mortgage interest rates, house prices, commercial lending, and the Buy-to-Let (BTL) market. Here, we summarise the key points to keep you informed and up-to-date.

Residential Mortgages Interest Rates:

In the past 15 months, the Bank of England has adjusted its base rate 14 times. The latest meeting held rates steady, offering a brief respite. Yet, uncertainties like global food and energy prices remain beyond the Bank’s control, potentially causing inflation spikes. Although average 5-year fixed-rate mortgages recently dropped to around 5.6%, actual mortgage costs depend on various factors, including how lenders fund their books.

We anticipate no significant interest rate drops in the next six months. Autumn often brings slight rate reductions, driven by lender reviews. In conclusion, residential mortgage rates will likely hover between 4.8% and 6% unless global conditions change significantly.

Residential House Prices:

While average UK house prices have dipped in the last three months, these fluctuations vary by location and are unsurprising given the substantial price hikes over the past few years. The average UK house price remains roughly £40,000 higher than pre-pandemic levels.

The 2023 UK housing market isn’t highly leveraged, unlike the 2008 crisis. Expect a slowdown in sales and more realistic expectations from sellers and buyers. Average house price growth should stabilise over the next six months.

Commercial Mortgages:

Commercial lending depends on various factors, including loan type, sector, and the UK’s economic outlook. Banks are tightening criteria and reducing Loan to Values (LTVs). While some lenders claim to offer up to 75% LTV, many are closer to 60-65%.

Different lenders have different appetites, which can change rapidly. Sectors like hospitality, retail, and property development face headwinds, while warehouses and healthcare lending are favoured. Interest rates range from 7.5% to 11%, depending on factors like sector, LTV, and trading data.

Expect commercial mortgage funding to be more challenging in the next 12-24 months due to a slowing UK economy. If you’re considering commercial borrowing, exploring options now is advisable.

Buy-to-Let (BTL) Market:

Landlords have faced government interventions, such as increased taxes and property standards. While higher standards are welcome, they add financial strain, especially with recent changes in EPC requirements. Many small landlords plan to exit the market within the next five years.

These factors, combined with higher mortgage rates and lender stress tests, have increased rents by as much as 15% in some areas. This trend is likely to continue as landlords adjust to new financial realities.

We expect another year of rent increases before the market stabilises. Smaller landlords may continue to leave, but increased rents should help rebalance the BTL market in the next 12-24 months.


In this brief market commentary, we’ve covered the latest developments in residential mortgage rates, house prices, commercial lending, and the BTL market. Stay informed and consider these insights when making financial decisions in the coming months.

By working with mortgage brokers like CAPC Mortgages, Grenfell James can support you to revolutionise your business finances. Connect with Chris Hewitt on LinkedIn or call 07766 816860 for a no-obligation chat – tell him we sent you!

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Grenfell James Technology Adoption Index

How does your business perform against others adopting financial tech? Find out with our interactive diagnostic:


How does your business receive invoices?


Invoices are mainly received in paper form


Invoices are mainly received by email


Invoices are emailed then automatically forwarded to a designated mailbox


How are purchase invoices processed?


Invoices are entered manually


Invoices are attached to manually raised invoices


Automated software (e.g. ReceiptBank, 1Tap, HubDoc etc) collates invoices


How are accounts processed?


Using Excel/paper-based


Using Computer-based, offline software


Using cloud-based accountancy software


How often is business data revised?


Data is updated annually


Data is updated quarterly


Data is updated monthly or more often


How is banking updated for your business?


Banking is updated manually


Banking is updated by imports


Banking is updated via a live feed


How are bank payments made?


Bank payments are manual


Bank payments are made using bulk imports


Bank payments are made directly via accounting software


How are bank receipts reconciled?


Receipts are chased and reconciled manually


Receipts are chased and reconciled automatically


A third-party platform is used to chase debts and collect fees


How often are management reports produced?


No reports are provided


Reports are provided but often too late to be valuable


Reports are automated with real-time information

Score 8-12:

Curious Exploration

Your financial technology phase is Curious Exploration

% of respondent businesses are in this phase too.

Switching accountancy systems may seem like an upheaval, but can be much more straightforward than most businesses imagine. From talking to our clients, they have found moving from paper invoicing and desktop-based accounting software to the cloud and apps quickly makes the transition process a worthwhile investment of time. Digital accounting solutions bring in streamlined processes, up-to-date business data and greater confidence in the accuracy of information when making financial decisions.

Grenfell James works with your team to fully assess the needs of your business and minimise the impact of any transitions for solutions we recommend.

Find out more about App Advisory


Score 13-19:

Measured Discovery

Your financial technology phase is Measured Discovery

% of respondent businesses are in this phase too.

Once cloud accountancy software is in place, there’s still plenty of scope to improve your accountancy processes and make sure your business is maximising the benefits of adopting a digital accounting solution. Grenfell James assesses each business to understand how any implemented solutions are being used, identify areas for improvement and the needs of the business overall to support your business goals and achieve success.

Our team of experts can discuss a range of time-saving automation and get different apps and cloud-based solutions talking to create and manage a digital accountancy eco-system to help your business grow.

Find out more about App Advisory


Score 20-24:

Bold Innovation

Your financial technology phase is Bold Innovation

% of respondent businesses are in this phase too.

You know the benefits of accounting technology and the impact it can have on your business goals. If you want to take it a step further, our team can conduct a systematic review of your processes, apps and business goals to ensure your digital accountancy ecosystem is keeping pace with the changing needs of a growing business.