Buy-to-let Mortgage Market Predictions 2025

A new calendar year brings with it, hope, New Year resolutions and 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 16th December 2024.

Within its forecasts, UK Finance predicts that total gross buy-to-let mortgage lending will be the same in 2025 as it was in 2024, albeit with a slightly lower value of purchases and a slightly higher value of remortgages. In 2024 we ended up at £32bn, which was higher than the previous forecasted amount. Within the 2023 Mortgage Market Forecasts document, UK Finance predicted that the total gross Buy-to-let lending for 2024 would be in the region of £26bn. What is also interesting in the most recent report, is that gross buy-to-let lending is expected to be in the region of £37bn for 2026.

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.

As for predictions, we are cautiously optimistic that gross buy-to-let lending in 2025 will be higher than the forecasted amount of £32bn. What that figure will be, will be down to a number of factors. As one example, in 2023, there was a greater proportion of product transfers undertaken and of those product transfers, the majority of landlords selected a two-year product. These two-year product terms will come to an end throughout 2025, and those landlords will be looking to reassess their options. 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 2025 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 click the button below. 

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.

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 specialist 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.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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