Movera comment on UK Finance Mortgage Market Forecasts 2025-26

16 December 2024

Nick Hale, CEO of Movera: comment on UK Finance Mortgage Market Forecasts 2025-2026

“The UK Finance mortgage market forecasts for 2025-2026 provide a positive view of improving conditions across much of the housing and mortgage landscape. The anticipated growth in gross lending to £260 billion, driven by rising real wages and improving affordability, is an encouraging sign of market resilience after a period of uncertainty.

“The forecasted 30% increase in external remortgaging to £76 billion in 2025 is particularly notable. As more fixed-rate deals come to an end and affordability pressures ease, this will likely provide opportunities for many borrowers to secure better deals. The projected growth in internal product transfers, up by 13% to £254 billion, also reflects this trend and demonstrates the importance of lender adaptability in meeting borrower needs.

“The buy-to-let market remains a challenging area, with a forecasted 7% contraction in purchase lending reflecting the pressures landlords face. However, the recovery seen in 2024 shows that there is still strength in this sector, even as it continues to adapt to regulatory and economic changes.

“These forecasts highlight a market that is stabilising and adjusting to new realities, with improving opportunities for homeowners and landlords alike. It’s important for the industry to remain focused on balancing innovation with the need to provide tailored, sustainable support for all participants in the market, with experiences that are digital when they can be and personal when they need to be.”