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Report
en_GB
Mortgage ownership has remained fairly consistent, with just over a fifth of UK adults owning their property with a mortgage. Affordability challenges remain despite real wage growth and interest rates…
UK
Mortgage and Loans
simple
UK Mortgages Market Report 2025
Mortgage ownership has remained fairly consistent, with just over a fifth of UK adults owning their property with a mortgage.
The UK mortgage market experienced a mixed performance in recent years, with a notable decline in 2023, primarily due to high interest rates and affordability challenges.
However, in 2024, the market rebounded after a steep decline in 2023, with a more than 7% increase in gross mortgage lending, reaching more than £200 billion, largely driven by house price growth and slight improvements in affordability. Historic data from the UK Mortgages Market Report shows fluctuations in gross mortgage lending, with last year marking a recovery but still falling short of pre-pandemic levels. The mortgage market forecast indicates long-term growth, with almost 30% cumulative increase, reaching a significant value, driven by anticipated interest rate cuts and regulatory adjustments. Despite this, the persistent rise in house prices and the need for larger deposits will continue to challenge affordability for first-time buyers (FTBs), with the housing supply shortage exacerbating the situation.
UK Mortgages Market Trends
Consumer trends in the UK mortgage market reveal a strong interest in green mortgages, with the majority of first-time buyers (FTBs) expressing interest in environmentally friendly options. Over two-thirds of mortgage owners are focused on securing low interest rates and minimising fees, with affordability being a key concern. More than half of renters are saving for a home deposit, but rising rents and house prices continue to delay purchasing plans. Mortgage switching and refinancing remain common with remortgage and product transfer activity accounting for almost half of total mortgage activity. However, a third of mortgage owners switched to a new deal with their existing lender, while only a portion transferred to a new lender. Additionally, younger generations, particularly millennials, are the most active group in pursuing homeownership, despite concerns about long-term affordability with nearly half of mortgage owners who have not yet retired concerned about paying off mortgages into retirement.
Purchasing the UK Mortgages Market Report 2025 would give access to the insights into trends like the growing demand for green mortgages and the focus on affordability. It highlights opportunities for lenders to improve affordability measures, offer innovative products like green mortgages and family-backed mortgages, and enhance communication about expanded lending criteria.
About The Report
The UK Mortgages Market Report 2025 provides comprehensive insights into the current state and future trends of the UK mortgage market, including consumer behaviour, affordability challenges, and the rising demand for green mortgages. It covers key areas such as mortgage lending performance, market dynamics, consumer preferences, and the impact of economic factors like interest rates and house prices. The report surveys a wide range of factors including consumer attitudes, lender strategies, and regulatory changes. Financial institutions, mortgage lenders, real estate developers, and policymakers will benefit from this mortgages market report, gaining valuable data to refine their strategies, improve customer engagement, and stay ahead in a competitive mortgages market.
Key Topics Analysed in the Report
The impact of the economic climate and regulation on mortgages
Market size and performance, including a five-year market forecast
Market share of the leading mortgage lenders
Recent mortgage activity and reasons for arranging a new mortgage deal
Consumer intentions in arranging a mortgage product in the next two years
Preferred term length for fixed-rate mortgage products among prospective homeowners
Mortgage owners’ satisfaction with their current mortgage lender and the importance of low fees being offered by lenders
Non-mortgage owners’ concern about affordability and how stamp duty changes have altered their mortgage plans in the next year
Mortgage owners’ consideration of extending mortgage terms and level of concern with payments still being made into retirement
Meet the Expert Behind the Analysis
This report was written by Lewis Cone. Lewis joined Mintel in May 2013 having graduated from the University of Southampton with a 2.1 BSc (Hons) degree in Economics and writes a range of industrial reports, from occupational health to the house building market.
Mortgage affordability is improving. However, rising house prices and stamp duty changes remain major challenges and require innovative solutions from lenders.
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