blog mortgage118

Author: David Sampson

  • House Prices Set to Rise 61% by 2036: What to Expect

    House Prices Set to Rise 61% by 2036: What to Expect

    House prices in the UK are projected to rise significantly over the next decade, with an anticipated increase of 61.1% by 2036. This surge means that first-time buyers may need to save substantially for deposits, with some requiring a considerable upfront amount.

    TL;DR: House prices could increase by 61.1% by 2036; first-time buyers may need to save for a large deposit, impacting affordability and access to homeownership.

    How Much Will House Prices Increase?

    According to recent analysis, semi-detached homes are expected to see the largest price hike, rising significantly by 2036. For first-time buyers, this translates to a deposit requirement that necessitates several years of saving based on projected earnings.

    Terraced homes are also set for a substantial rise, with prices increasing considerably. Here, first-time buyers would need to save a deposit that would take several years to accumulate. Detached properties could see average prices soar, demanding a deposit that is equivalent to many years of average earnings.

    What About Flats and Maisonettes?

    Flats and maisonettes are predicted to experience a notable price increase by 2036. First-time buyers would require an average deposit that could be saved in several years, based on expected income levels. The growing price of flats raises concerns as many young buyers reflect on the stark contrast between current prices and those from previous generations.

    What This Means for First-Time Buyers

    The forecasted increase in house prices poses significant challenges for first-time buyers. With average deposits rising, many may find it increasingly difficult to enter the property market. The projected average UK home price could reach a substantial amount by 2036, with detached houses potentially exceeding a significant mark by 2045.

    Areas like Manchester are expected to be among the most challenging for aspiring homeowners, with extended periods required to save for deposits. This trend could lead to a growing divide in homeownership accessibility, particularly for younger generations.

    Frequently Asked Questions

    What factors are driving the increase in house prices?

    Several factors contribute to the anticipated rise in house prices, including demand outpacing supply, increasing construction costs, and economic factors such as inflation and wage growth.

    How can first-time buyers prepare for these changes?

    First-time buyers should consider saving early for deposits, exploring government schemes, and staying informed about market trends to make educated decisions about their home purchases.

  • Two in Five Landlords Consider Selling Rental Properties

    Two in Five Landlords Consider Selling Rental Properties

    Recent findings reveal that a significant portion of landlords are contemplating selling their rental properties, despite a backdrop of increasing rental yields and strong tenant demand. This trend highlights a shift in the private rental sector, raising concerns about the future of rental housing availability in the UK.

    TL;DR: A notable percentage of landlords are considering selling their rental homes; many report rising rental yields, yet many feel market conditions hinder portfolio growth.

    Why Are Landlords Thinking of Selling?

    According to a recent survey, a considerable number of landlords are considering reducing their property portfolios. This comes at a time when many landlords have reported an increase in rental yields over the past year. Despite these positive figures, a significant portion of landlords feel that current market conditions are preventing them from expanding their portfolios.

    What Does This Mean for Tenants?

    The potential exit of landlords from the rental market could lead to a decrease in available rental properties, exacerbating the ongoing housing shortage. With tenant demand surging, this could result in higher rental prices and increased competition for available homes. Tenants may find it increasingly difficult to secure affordable housing if landlords follow through on their plans to sell.

    What This Means for Landlords and Investors

    For landlords contemplating their next steps, the current market presents a dichotomy. While rental yields are on the rise, the apprehension surrounding market conditions may prompt some to exit the sector altogether. Investors should closely monitor these trends, as shifts in landlord sentiment could impact property values and rental availability.

    Frequently Asked Questions

    What should landlords consider before selling?

    Landlords should evaluate their current rental yield, market conditions, and long-term investment goals. Consulting with a financial advisor may also provide clarity on the best course of action.

    How might this trend affect rental prices?

    If many landlords exit the market, the reduction in rental properties could lead to increased competition among tenants, driving rental prices higher.

  • Mortgage Innovation & Technology Awards 2026 for Mortgage Market

    Mortgage Innovation & Technology Awards 2026 for Mortgage Market

    The Mortgage Innovation & Technology Awards (MITAs) for 2026 are now open for entries, recognising the pioneers transforming the mortgage market. This initiative highlights the contributions of various stakeholders, including brokers, lenders, fintechs, and industry service partners, making it a significant event for all involved in the mortgage and protection ecosystem.

    TL;DR: The MITAs celebrate innovation in the mortgage market; entries are open to all industry participants, offering a platform to showcase achievements and enhance credibility.

    Who Can Enter the MITAs?

    The MITAs invite submissions from a wide range of participants in the mortgage market. This includes brokers and advisers, lenders and banks, mortgage networks, fintech companies, and technology providers. Individuals and teams can submit entries, allowing for a diverse representation of innovation and success across the sector.

    Why Are the MITAs Important for the Mortgage Market?

    Participating in the MITAs provides a unique opportunity to demonstrate measurable impact and innovation within the mortgage market. Winners gain recognition for their hard work, which can strengthen their brand and credibility while benchmarking their achievements against industry leaders. This recognition can be vital for attracting new clients and partnerships in a competitive market.

    What This Means for Industry Stakeholders

    For landlords, borrowers, brokers, and investors, the MITAs highlight the ongoing evolution of the mortgage market driven by technological advancements and innovative practices. Engaging with this event can provide insights into emerging trends and successful strategies that can influence future business decisions and investment opportunities. For more information on current trends, check our current mortgage rates.

    Frequently Asked Questions

    How do I submit an entry for the MITAs?

    Entries can be submitted by individuals, teams, or organisations within the mortgage ecosystem. Ensure you highlight your achievements and innovations when applying.

    When is the Mortgage Innovation & Technology Live event?

    The Mortgage Innovation & Technology Live event will take place on 13 October 2026 at County Hall, London, providing a platform for networking and collaboration.

  • Landlords Drive Surge in Property Improvement Equity

    Landlords Drive Surge in Property Improvement Equity

    Landlords are increasingly tapping into their property equity to fund improvements, with £2.37 billion withdrawn through remortgaging in 2025. This marks a significant 60% increase from the £1.48 billion withdrawn in 2024, highlighting a strategic shift among landlords as they enhance their properties.

    TL;DR: Landlords withdrew £2.37 billion for property improvements in 2025, a 60% rise from 2024; this trend reflects a growing focus on enhancing rental properties.

    Why Are Landlords Increasing Remortgaging?

    According to Paragon Bank’s analysis, the surge in equity withdrawal correlates with heightened awareness of the Renters’ Rights Act, which began implementation on 1 May 2025. This legislative change has prompted landlords to improve their properties to meet new standards and attract tenants.

    What Are the Financial Implications for Landlords?

    The 2025 figure was based on 14,817 remortgages, with each loan averaging nearly £43,000. This is a notable increase from 9,754 remortgages in 2024. Landlords are not only seeking to enhance the appeal of their properties but are also strategically structuring their borrowing to use existing equity. Paragon Bank found that nearly half of landlords (44%) are actively targeting homes needing improvement, spending an average of £8,500 per property.

    What This Means for Landlords

    This trend indicates that landlords are becoming more proactive in managing their portfolios. By investing in property improvements, they can potentially increase rental yields and property values, making their investments more lucrative. However, it’s essential for landlords to ensure that any improvements align with energy efficiency standards, as many do not assess their Energy Performance Certificates (EPCs) post-renovation.

    Frequently asked questions

    How can landlords benefit from remortgaging for improvements?

    By remortgaging, landlords can access equity to fund property enhancements, which can lead to higher rental income and increased property value.

    What should landlords consider before remortgaging?

    Landlords should evaluate the cost of remortgaging against potential returns from property improvements and ensure compliance with energy efficiency regulations.

  • Kensington Cuts Buy-to-Let Mortgage Rates by 25bps

    Kensington Cuts Buy-to-Let Mortgage Rates by 25bps

    Kensington Mortgages has announced a reduction in mortgage rates by up to 25 basis points, impacting both residential and buy-to-let borrowers. This move comes as other lenders, including April Mortgages and The Mortgage Lender, also adjust their pricing. These changes could provide more competitive options for landlords and homebuyers alike.

    TL;DR: Kensington has cut buy-to-let mortgage rates by up to 25bps; April Mortgages and The Mortgage Lender are also reducing rates, benefiting landlords and borrowers.

    What are the new rates for buy-to-let mortgages?

    Kensington has lowered rates on its residential mortgage range, with the most significant cuts seen in its Resi Select products. For buy-to-let borrowers, selected 75% loan-to-value (LTV) rates have decreased across Prime, Prime eKo, and Core products. Additionally, The Mortgage Lender has trimmed rates by up to 15bps on its buy-to-let deals, including multi-loan and houses in multiple occupation options.

    How will these changes affect landlords?

    Landlords looking to refinance or expand their property portfolios can take advantage of these lowered rates. April Mortgages is set to reduce five-year fixed rates for remortgage and purchase, with rates starting at 5.45% for 60% LTV purchases and 5.75% for remortgages. This could lead to significant savings for landlords who act quickly to secure these competitive rates.

    What this means for borrowers and brokers

    For borrowers, these rate cuts signal a more favourable lending environment, particularly for those in the buy-to-let sector. Brokers should keep an eye on these changes to provide clients with the best options available. With Rely also launching limited edition deals and reducing minimum loan sizes to £25,001, there are more opportunities for investors in the buy-to-let market.

    Frequently asked questions

    What are the benefits of the new buy-to-let mortgage rates?

    The new rates offer lower borrowing costs, making it easier for landlords to finance properties or refinance existing mortgages.

    How can I find the best buy-to-let mortgage rates?

    Utilising tools like the BTL affordability calculator can help you compare options and find the best rates available.

  • Landlords Consider Selling Amid Rising Yields

    Landlords Consider Selling Amid Rising Yields

    Recent findings reveal that a significant portion of landlords are contemplating selling their rental properties, despite experiencing rising rental yields and increased tenant demand. This trend highlights a shift in the private rental sector, raising concerns about the future of the rental market.

    TL;DR: A notable percentage of landlords may sell their rental homes; rising yields and tenant demand are not enough to offset market challenges.

    Why Are Landlords Thinking About Selling?

    Recent data indicates that many landlords have reported an increase in rental yields over the past year. However, a substantial number of landlords express that current market conditions hinder their ability to expand their property portfolios. This disconnect suggests that while rental income is improving, other factors are prompting landlords to consider exiting the market.

    What Are the Implications for the Rental Market?

    The potential exit of landlords from the rental market could lead to a decrease in available rental properties, exacerbating the existing demand. With tenant demand surging, a reduction in rental stock could drive prices higher, impacting affordability for renters. Additionally, this trend may influence mortgage lending practices as lenders assess the stability of the rental market.

    What This Means for Landlords

    For landlords, the decision to sell may stem from a combination of market pressures and personal financial strategies. Those considering selling should evaluate their options carefully, especially given the current climate of rising rental yields. Landlords may need to stay informed about market trends and consider how upcoming changes could impact their investments.

    Frequently asked questions

    What should landlords consider before selling?

    Landlords should assess their current rental yields, market conditions, and personal financial goals before making a decision to sell.

    How might the rental market change if many landlords sell?

    If a significant number of landlords exit the market, it could lead to reduced rental availability and increased prices, impacting tenants’ affordability.

  • Quantum Mortgages Expands Bridging Finance with New Appointment

    Quantum Mortgages Expands Bridging Finance with New Appointment

    Quantum Mortgages has announced the appointment of Phil Beswick as its new key account manager for the Northeast region. This strategic move comes as the lender continues to enhance its offerings, following the successful launch of new cashback and product transfer propositions that have garnered positive feedback from brokers and landlord clients.

    TL;DR: Quantum Mortgages has appointed Phil Beswick as key account manager in the Northeast; this aims to strengthen relationships with local brokers and enhance its bridging finance offerings.

    Who is Phil Beswick?

    Phil Beswick joins Quantum Mortgages from LiveMore Mortgages, where he excelled as a key account manager. His experience in the later-life lending market positions him well to connect with intermediaries in the Northeast, focusing on providing tailored solutions to meet their needs.

    What are Quantum’s recent product offerings?

    Quantum Mortgages recently launched cashback and product transfer propositions, which have been well received by the broker community and landlord clients. These new offerings are designed to enhance flexibility and provide additional financial benefits for clients looking to maximise their mortgage options.

    What this means for landlords and brokers in bridging finance

    For landlords and brokers in the Northeast, Beswick’s appointment signals an opportunity to engage with a specialist lender that understands the unique challenges of the market. Quantum’s recent product launches could provide additional avenues for financing, making it easier for landlords to manage their portfolios effectively. Brokers can use these new products to offer more competitive solutions to their clients, potentially increasing their business opportunities. For more information, check out our bridging finance guide.

    Frequently asked questions

    What impact will Beswick’s appointment have?

    Beswick’s appointment is expected to strengthen Quantum’s relationships with local brokers, enhancing their ability to provide tailored bridging finance solutions.

    How do the new products benefit landlords?

    The new cashback and product transfer offerings provide landlords with more flexible financing options, potentially improving their cash flow and investment strategies.

  • Landlords Drive Equity Release in the Mortgage Market

    Landlords Drive Equity Release in the Mortgage Market

    Recent analysis reveals a significant surge in remortgaging among landlords, with a notable increase in equity release for property upgrades last year. This trend highlights how landlords are strategically using their property equity to enhance their buy-to-let portfolios, which is important for maintaining competitiveness in the evolving mortgage market.

    TL;DR: Landlords withdrew a substantial amount in equity for property improvements last year; this trend underscores the importance of property upgrades amid changing regulations.

    What is Driving the Equity Release Boom?

    According to Paragon Bank’s analysis, landlords withdrew a significant amount in equity through remortgaging last year, compared to the previous year. This increase was driven by a considerable number of remortgages, with each averaging a notable sum. The data indicates that landlords are actively investing in properties that require upgrades, with a significant portion targeting homes needing improvement and spending an average amount per property on enhancements like new boilers and kitchen fittings.

    How Will Upcoming Regulations Impact the Mortgage Market?

    With the Minimum Energy Efficiency Standards (MEES) regulations set to require properties to meet certain energy performance ratings by 2030, landlords are under pressure to make sustainability-focused upgrades. Paragon’s research shows that a notable percentage of landlords plan to refinance this year, with this figure rising among those owning multiple properties. This trend presents opportunities for brokers to assist landlords in navigating the remortgaging process to fund necessary improvements.

    What This Means for Landlords and Borrowers

    For landlords, the ability to release equity for property upgrades not only enhances the value of their investments but also ensures compliance with upcoming regulations. As a significant number of landlords do not assess their EPCs post-renovation, there is a clear need for better awareness and action to meet energy efficiency standards. This shift could significantly impact the mortgage market, as landlords who improve their properties may secure better financing options in the future.

    Frequently Asked Questions

    What types of improvements are landlords making?

    Landlords are focusing on essential upgrades, including installing new boilers, renovating bathrooms and kitchens, and addressing damp or structural issues, with an average spend per property.

    How can brokers assist landlords in this market?

    Brokers can help landlords navigate the remortgaging process to access equity for property improvements, particularly in light of upcoming MEES regulations that necessitate energy efficiency upgrades.

  • Kensington Reduces Mortgage Rates in Competitive Market

    Kensington Reduces Mortgage Rates in Competitive Market

    Kensington has announced a reduction in mortgage rates by up to 25 basis points, a move that reflects a broader trend among lenders to adjust pricing in the current mortgage market. This change is significant for both prospective homebuyers and existing homeowners looking to remortgage, as it may lead to more competitive borrowing options.

    TL;DR: Kensington cuts mortgage rates by up to 25bps, impacting residential and buy-to-let borrowers; April and TML also reduce rates, enhancing market competition.

    How Do the Rate Cuts Affect Borrowers?

    Kensington’s rate reductions primarily target its residential mortgage range, with Resi Select rates dropping by up to 25bps across various fee structures and loan-to-value (LTV) ratios. For buy-to-let investors, selected 75% LTV rates on Prime, Prime eKo, and Core products have also seen reductions. April Mortgages will implement lower rates for five, ten, and 15-year fixed mortgages starting tomorrow, making it an opportune time for borrowers to explore remortgaging options.

    What Should Landlords Know About the Changes?

    Landlords can benefit from TML’s recent rate trims of up to 15bps on buy-to-let deals, which include properties such as houses in multiple occupation. TML has also introduced limited edition products with competitive two-year fixed rates starting at 3.79%. Additionally, Rely has lowered the minimum loan size for its buy-to-let offerings to £25,001, potentially opening doors for smaller investors.

    What This Means for the Mortgage Market

    The recent rate cuts signal a shift in the mortgage market, indicating increased competition among lenders. Borrowers should keep an eye on upcoming offers from various lenders, as these adjustments may lead to more favourable terms and lower monthly payments. With the current climate, it’s advisable for both homebuyers and landlords to assess their options and consider refinancing or purchasing new properties.

    Frequently asked questions

    What types of mortgages are affected by the rate cuts?

    The rate cuts apply to residential mortgages, buy-to-let products, and specific fixed-rate deals from lenders like Kensington and TML.

    How can I take advantage of these new rates?

    Borrowers should compare current mortgage rates and consider remortgaging or purchasing new properties to benefit from the reduced rates.

  • Landlords Turn to Equity Release for Property Upgrades

    Landlords Turn to Equity Release for Property Upgrades

    Landlords in the UK are increasingly using equity release to finance upgrades on their rental properties, with a significant rise in remortgaging activity observed last year. This trend highlights how landlords are strategically tapping into the equity they have built in their properties to improve their rental offerings.

    TL;DR: Landlords withdrew a substantial amount in equity through remortgaging for property improvements last year, indicating a proactive approach to enhancing rental properties ahead of new energy efficiency regulations.

    Why Are Landlords Remortgaging?

    According to analysis from Paragon Bank, landlords withdrew a considerable amount for property enhancements in the previous year compared to the year before. This increase was driven by a notable number of remortgages, with an average withdrawal per loan. The data suggests that many landlords are focusing on properties that require improvements, with a significant portion actively targeting homes needing work and spending a notable amount on upgrades such as new boilers, kitchens, and addressing structural issues.

    What Changes Are Landlords Making?

    The most common upgrades include installing new heating systems, renovating bathrooms and kitchens, and addressing damp or structural problems. These improvements not only enhance the living conditions for tenants but also align with upcoming regulatory requirements. As the Minimum Energy Efficiency Standards (MEES) regulations come into effect, landlords will need to ensure their properties achieve an Energy Performance Certificate (EPC) rating of C or above by 2030.

    What This Means for Landlords

    With a significant portion of landlords planning to refinance this year, there are substantial opportunities for brokers. As landlords invest in property improvements, they are also preparing for stricter energy efficiency regulations, which will require funding for sustainability-focused upgrades. This proactive approach not only helps landlords meet regulatory standards but also enhances the overall value of their rental portfolios.

    Frequently Asked Questions

    How can landlords benefit from equity release?

    Landlords can use equity release to finance necessary property improvements, which can increase rental income and property value, while also ensuring compliance with energy efficiency regulations.

    What should landlords consider before remortgaging?

    Before remortgaging, landlords should assess their current mortgage rates, potential costs of improvements, and the impact of upcoming regulations on their properties.