Illustration representing the UK mortgage market insights for 2024-2025

Mortgage Market Insights for 2024-2025

In 2023, the UK mortgage market faced various challenges, and these trends are expected to carry on into 2024. Let’s look bit deeper into what these changes are and what they could mean:

1. Dip in Mortgage Lending: The reduction in mortgage lending in 2023, predicted to continue in 2024, reflects a cautious market response to economic uncertainties. This downturn is influenced by factors such as rising interest rates and inflation, which have made borrowing more expensive and reduced consumer purchasing power. For those looking to secure a mortgage in 2024, it’s crucial to be aware of these market conditions and perhaps explore various lenders or enlist the help of a mortgage broker to find the most favourable terms.

2. Challenges in House Purchases: The decline in house purchase lending can be attributed to a combination of high property prices and increased living costs, making it challenging for potential buyers to meet the affordability criteria set by lenders. This situation is expected to persist into 2024, potentially leading to a

slower housing market. Buyers may need to reassess their budgets and possibly consider less expensive areas or property types.

3. Shifts in Refinancing Patterns: In 2023, many homeowners chose product transfers with existing lenders, a trend that simplifies the refinancing process as it bypasses the need for stringent affordability checks. This shift indicates a preference for more straightforward, less risky financial arrangements in uncertain economic times. In 2024, if the economic climate remains challenging, similar trends in refinancing behaviour are likely to continue.

4. Buy-to-Let Market Slows Down: The decline in the buy-to-let market is significant, influenced by higher operational costs, tax changes, and tighter lending criteria. These factors have made property investment less attractive, particularly for small-scale landlords. The market in 2024 is likely to remain challenging, and prospective landlords should conduct thorough market research and financial planning before entering this sector.

5. Increase in Mortgage Arrears: The rise in mortgage arrears reflects the increasing financial pressure on households, a trend exacerbated by the economic challenges of the past year. In 2024, with continued economic pressures, maintaining mortgage payments may remain challenging for many. Homeowners should be proactive in managing their finances and seek advice or support from lenders at early signs of financial difficulty.

6. Looking Ahead to 2025: The projected recovery in 2025 hinges on a combination of economic factors, including an anticipated improvement in wages, potential mortgage rate decreases and a potential softening in house prices. These changes would help in making mortgages more affordable and accessible. Prospective buyers might find it beneficial to plan their purchases with this potential future easing in mind.

7. Advice for Mortgage Holders and Seekers: In these uncertain times, it’s vital for current and prospective mortgage holders to stay informed about market trends and changes. Seeking advice from mortgage advisors and communicating with lenders can provide clarity and assistance in navigating these challenges. Exploring different mortgage products and keeping an eye on market developments can also be beneficial.


While 2024 may still present challenges in the mortgage market, understanding these trends and preparing accordingly can help you navigate the landscape more effectively. For those planning to buy property or manage existing mortgages, staying informed and seeking professional mortgage advice when necessary will be key.