Movera comments on UK Finance Mortgage Market Forecast

15 December 2025

Nick Hale, CEO of Movera commented:

“The UK Finance mortgage market forecast for 2026-2027 tells a story of market resilience in challenging conditions. The forecast 4 per cent increase in gross lending to £300 billion is indicative of rising real wages but also, unfortunately, of rising house prices.

“The budget last month may have bought some clarity as to policy going into 2026, but low movement on interest rates, increasing taxation to groups like landlords, and uncertainty around what – if any – new assistance will be made available for first-time buyers, is all likely to have an impact on momentum building in the new year. We will see far less hesitation in the market; but equally, for many groups there’s currently no real incentive to progress. As such it’s no surprise that property transactions are forecast to fall 1 percent in 2026.

“Instead, with 1.8 million fixed-rate mortgages estimated to mature, refinancing looks set to carry the mortgage market. In particular, UK Finance estimates we will see 10 per cent growth in external remortgaging as competition between lenders builds and brokers look to minimise payment shock for their clients coming off extremely low pandemic deals.

“For brokers, the need to balance innovation and digitisation with a sensitive, human touch has never been more important, as 2026 will bring not only a remortgage wave, but affordability challenges for many.”