Projected Growth in Mortgage Lending

According to a recent report by the EY Item Club, mortgage lending is forecasted to increase by 3.1% in 2025, up from 1.5% growth in 2024. This upward trajectory is expected to continue into 2026, with a projected expansion of 3.2%. The Bank of England’s decision to lower interest rates by 25 basis points to 4.5% has been a significant catalyst, reducing borrowing costs and stimulating demand in the housing market. Strong income growth and low unemployment rates further bolster this positive outlook.

Implications for Property Investors

The anticipated growth in mortgage lending presents several opportunities and considerations for property investors:

• Increased Access to Capital: Lower interest rates make borrowing more affordable, enabling investors to finance new property acquisitions or refinance existing mortgages under more favourable terms.

• Market Competitiveness: As more buyers enter the market due to improved borrowing conditions, competition for desirable properties may intensify, potentially driving up property values.

• Strategic Planning: Investors should remain vigilant of geopolitical tensions and upcoming UK tax changes, which could impact the broader economic landscape and, consequently, the property market.

Insights from Apex Invest

Dev Singh, Co-Founder of Apex Invest, offers his perspective on the evolving mortgage landscape:

“The projected doubling of mortgage lending growth in 2025 signifies a robust and dynamic property market. For investors, this environment offers a unique opportunity to expand portfolios and capitalise on favourable borrowing conditions. At Apex Invest, we are committed to guiding our clients through these developments, ensuring they are wellpositioned to make informed and strategic investment decisions.”

Strategic Considerations for Investors

In light of these developments, property investors are advised to:

• Monitor Economic Indicators: Stay informed about interest rate trends, employment statistics, and income growth to anticipate market movements.

• Evaluate Financing Options: Assess various mortgage products to identify those that align with investment goals and offer the most advantageous terms.

• Diversify Portfolios: Consider a mix of property types and locations to mitigate potential risks associated with market fluctuations.

By adopting a proactive and informed approach, investors can navigate the evolving property landscape and leverage opportunities arising from the Bank of England’s monetary policies.

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The Times - https://www.thetimes.com/business-money/economics/article/uk-mortgagelending-growth-set-to-double-in-2025-zdvp0mg99?utm