Buy to let market predictions
The beginning of a new calendar year tends to bring with it, hope, New Year resolutions and of course, mortgage market predictions.
UK Finance, the trade association for the banking and finance industry, recently released its predictions for the next two years, in a Mortgage Market Forecasts document that was published on 11th December 2023.
Within its forecasts, UK Finance predicts that total gross Buy to Let mortgage lending will drop from £28bn in 2023 to £26bn in 2024, with £26bn also predicted for 2025. It should be noted that within the 2022 Mortgage Market Forecasts document, UK Finance predicted that the total gross Buy to Let lending would be in the region of £43bn. What should be noted is that these figures do not include product transfers. A product transfer is where a landlord moves onto a new product with their current lender, at the end of their existing product. The predicted remortgage activity did not materialize during 2023 for a number of reasons, including, a higher proportion of landlords opted for a product transfer rather than remortgaging to a new lender.
As for predictions, we believe the £26bn provided by UK Finance is conservative. What that figure will be, will be down to a number of factors. As we move into 2024 stability has returned to the market with SWAP rates inching downwards since the hold on Bank Base Rate back in September. Lenders will also be looking to obtain their market share and will aim to offer competitive products and criteria to enable them to achieve their 2024 lending targets.
Professional mortgage advice has always been important for Buy to Let investors, but in the current market, with complexity and diverse offerings available from lenders, it’s probably fair to say that it’s now a necessity. A professional mortgage adviser will be best placed to research the market to find the best deal for you and will also have access to lenders that customers are not able to access directly.
Wishing you and your family a happy, healthy, and prosperous New Year.
At NRLA Mortgages, we have a team of expert advisers who can discuss all of your mortgage requirements, whether you are just looking for the best rates or want to use a remortgage as an opportunity to raise capital and grow your portfolio. If you would like to discuss your options, give NRLA Mortgages a call on 0161 341 0581 or visit the NRLA website https://www.nrla.org.uk/services/mortgages.
Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.
UK Finance Mortgage Market Forecasts 2023-2024
Mortgage Market Forecasts 2024-2025
This is an advertisement only and in no way should be viewed as a personal recommendation or advice. Before a recommendation of the suitability of the product can be given, we will direct you to 3mc (UK) Limited who can provide independent mortgage advice. As part of this they will ask questions so that they can fully understand your circumstances before giving advice.
NRLA Mortgages is a trading name of LPTE Limited which is an Introducer Appointed Representative of 3mc (UK) Limited who is Authorised and Regulated by the Financial Conduct Authority and is entered on the FS Register under reference 302992.
Please note: 3mc can advise/arrange Business Buy to Let (BBTL) and Consumer Buy to Lets (CBTL). Of the two, only Consumer Buy to Lets are regulated by the FCA.
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