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BY: Doug Hall, Director, 3mc

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 most suitable deal for you and will also have access to lenders that customers are not able to access directly.

It’s highly recommended to seek legal advice, and stay up to date with changes in UK landlord and tenant law. You could consider joining a landlord association such as the NRLA to help you stay compliant, save time and stress, save money, and ultimately help see your rental business thrive. Read more about the NRLA.

This information is a general overview and not exhaustive, so be sure to conduct further research or consult legal professionals for specific guidance based on your situation, location, and circumstances.

At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.

All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.

*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.