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Author: David Sampson

  • UK House Prices Remain Flat in April 2026: What it Means for Mortgage Holders

    UK House Prices Remain Flat in April 2026: What it Means for Mortgage Holders

    As of May 2026, the UK housing market has seen a slight dip in property prices, with a 0.1% drop in April following a 0.5% decrease in March, according to the Halifax house price index. This leaves the average house price at £299,313, down from £299,609 the previous month. This article will explore the implications of these changes for mortgage holders and prospective buyers.

    Impact on Existing Mortgage Holders

    Remortgagers

    For those looking to remortgage, the slight drop in house prices may impact the loan-to-value (LTV) ratio. For instance, a homeowner with a £225,000 mortgage on a property previously valued at £300,000 would have had a 75% LTV. However, with the new average price of £299,313, the LTV increases to 75.2%. This slight increase could affect the remortgage rates available. With the current mortgage rates at 3.75%, monthly payments on a £225,000 repayment mortgage could rise from £1,309 to £1,314, an annual increase of £60.

    Homeowners with Tracker Mortgages

    Those with tracker mortgages will be less affected by the house price changes, as their rates follow the Bank of England base rate, currently 3.75%. However, if house prices continue to fall, it could influence the Bank’s future decisions on the base rate.

    Implications for Prospective Buyers

    First-Time Buyers

    For first-time buyers, the slight drop in house prices could make homeownership slightly more affordable. For example, a 90% LTV mortgage on a £299,313 property would require a deposit of £29,931, compared to £30,000 for a £300,000 property. With a 25-year term and a 3.75% interest rate, monthly repayments would be around £1,389, a saving of £3 per month or £36 per year compared to the previous average house price.

    Buy-to-Let Investors

    Buy-to-let investors may see a slight decrease in their potential rental yield due to the drop in house prices. For instance, a property in the North West, where the average price is now £248,945, could yield around 5% annually, down from 5.1% in March.

    Regional Variations in House Prices

    While the overall trend shows a slight drop in house prices, regional variations exist. The South East saw the largest drop in house prices, with a 2% decrease year on year, while Northern Ireland experienced the highest growth, with a 7.6% increase over the past year. This regional disparity could influence decisions on where to buy or invest in property.

    Frequently Asked Questions

    How have house prices changed over the past year?

    Over the past year, house prices have seen a slight decrease, with the annual growth rate dipping to 0.4% in April 2026 from 0.8% in March 2026.

    Which region has seen the fastest house price growth?

    Northern Ireland has seen the fastest house price growth, with a 7.6% increase over the past year.

    How does the drop in house prices affect my mortgage payments?

    The drop in house prices primarily affects those looking to remortgage, as it may increase their loan-to-value ratio and potentially their mortgage rate. For example, monthly payments on a £225,000 repayment mortgage could rise by £5.

    What does the house price drop mean for first-time buyers?

    For first-time buyers, the slight drop in house prices could make homeownership slightly more affordable. A 90% LTV mortgage on a £299,313 property would require a smaller deposit and result in slightly lower monthly repayments.

  • Together Slashes Unregulated Bridging Rates: What it Means for Borrowers in 2026

    Together Slashes Unregulated Bridging Rates: What it Means for Borrowers in 2026

    Specialist property lender Together has announced a 0.05% rate reduction across selected unregulated bridging products as of 8 May 2026. This strategic move is aimed at enhancing affordability, particularly at higher loan-to-value bands, and offers a significant shift for borrowers and investors alike.

    Rate Reductions in Detail

    Together’s headline first charge rates now start from 0.90% for unregulated residential bridging, 1.04% for semi-commercial, and 1.08% for commercial properties. Second charge headline rates now start from 1.08% for residential bridging, 1.06% for semi-commercial, and 1.10% for commercial properties. These products are available on loans between £26,000 and £5m, with up to 100% funding available with additional security.

    Impact on Residential Borrowers

    For a homeowner with a £500,000 unregulated residential bridging loan at 75% LTV, this rate cut reduces monthly payments from £3,750 to £3,562.50 — a saving of £187.50 per month or £2,250 per year.

    Impact on Commercial Property Owners

    A commercial property owner with a £1m semi-commercial bridging loan sees their monthly cost drop from £10,400 to £10,040. This equates to a monthly saving of £360, or £4,320 annually.

    Impact on First-Time Buyers

    Consider a first-time buyer with a £300,000 unregulated residential bridging loan at 90% LTV. With the new rate cut, their monthly payments would decrease from £2,250 to £2,160, leading to a monthly saving of £90, or £1,080 per year.

    Market Context

    These rate reductions come at a time when the UK base rate stands at 3.75% as of April 2026. Compared to the base rate six months ago, which was 3.5%, the current rate indicates a rising trend. In this context, Together’s rate cuts provide a competitive edge in the bridging loan rates market.

    Comparison to Previous Rates

    Compared to a year ago, when the rates for unregulated residential bridging loans were around 1.2%, the current rates represent a significant reduction. This means that borrowers can now access cheaper financing options for their property investments.

    Direction of Travel

    Given the current upward trend of the base rate, the rate cuts by Together offer a counterpoint. This move could potentially trigger a competitive response from other lenders in the market.

    Year-on-Year Review

    Looking back over the past 12 months, the base rate has increased by 0.25%. Despite this, Together’s rate cuts represent a significant reduction in the cost of borrowing, underlining their commitment to affordability and flexibility for their customers.

    Frequently Asked Questions

    What are the new rates for unregulated bridging loans?

    The new rates start from 0.90% for unregulated residential bridging, 1.04% for semi-commercial, and 1.08% for commercial properties.

    How much can I save with the new rates?

    For a £500,000 residential bridging loan at 75% LTV, you could save £187.50 per month or £2,250 per year. For a £1m semi-commercial loan, the savings could be £360 per month or £4,320 per year.

    What is the current base rate?

    The current Bank of England base rate is 3.75% as of April 2026.

    How do these rates compare to a year ago?

    Compared to a year ago, when the rates for unregulated residential bridging loans were around 1.2%, the current rates represent a significant reduction.

  • Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    As of May 2026, Foundation has expanded its Buy-to-Let (BTL) offering with the launch of several new products and a reduction in BTL rates. These changes include a new green standard HMO product, five-year fixes for MUFBs and holiday lets, and a two-year fix for expat borrowers, all with competitive rates and fees.

    Details of the New BTL Products

    Foundation’s green standard HMO product is priced at 5.59% with a 4% fee. It comes with £500 cashback, no application fee, and is open to properties with an Energy Performance Certificate (EPC) rating of A to C. For MUFBs and holiday lets, Foundation has introduced a pair of five-year fixes, each with a flat fee of £4,995. The MUFB product is priced at 6.24% and the holiday let option at 6.34%. For expat borrowers, a two-year fix has been added to the F2 range, priced at 6.34% with a 1.5% fee. Within its F1 range, for borrowers with an almost clean credit history, a green five-year fix has been launched at 5.49% with a 5% fee.

    Impact on Borrowers

    Scenario 1: Landlord with a Green Standard HMO

    A landlord with a £250,000 interest-only BTL mortgage for a green standard HMO at 75% LTV would see their monthly cost drop from £1,432 to £1,389 due to the new rate of 5.59%. This equates to a saving of £43 per month or £516 per year.

    Scenario 2: Expat Borrower with a Two-Year Fix

    An expat borrower with a £200,000 repayment mortgage at 75% LTV would see their monthly payments drop from £917 to £875 with the new two-year fix rate of 6.34%. This results in a saving of £42 per month or £504 per year.

    Market Context

    These changes come at a time when the Bank of England base rate is 3.75%, having increased from 3.5% six months ago. The new rates offered by Foundation are competitive in the current market, particularly for landlords and expat borrowers. The introduction of green products also aligns with the increasing focus on energy efficiency in the UK property market.

    Frequently Asked Questions

    What is the new green standard HMO product?

    The new green standard HMO product is a mortgage product with a rate of 5.59% and a 4% fee. It offers £500 cashback and no application fee, and is available for properties with an EPC rating of A to C.

    What are the new five-year fixes for MUFBs and holiday lets?

    The new five-year fixes for MUFBs and holiday lets are mortgage products with flat fees of £4,995. The MUFB product has a rate of 6.24% and the holiday let product has a rate of 6.34%.

    What is the new two-year fix for expat borrowers?

    The new two-year fix for expat borrowers is a mortgage product in the F2 range with a rate of 6.34% and a 1.5% fee.

    What is the new green five-year fix in the F1 range?

    The new green five-year fix in the F1 range is a mortgage product for borrowers with an almost clean credit history. It has a rate of 5.49% and a 5% fee.

  • GB Bank Exits Bridging Loan with £1.5m HMO Refinance: What It Means for Borrowers in 2026

    GB Bank Exits Bridging Loan with £1.5m HMO Refinance: What It Means for Borrowers in 2026

    GB Bank has recently exited a bridging loan with a £1.5 million refinance in the Houses in Multiple Occupation (HMO) sector. The borrower, noted for their experience and robust HMO portfolio, is using recycled capital to further their growth strategy. The deal was orchestrated by GB Bank’s team including Adnan Ali, Stefanos Petrou, Manasi Nayyar, and Hrishikesh Tendulkar.

    Impact on Borrowers

    Scenario 1: First-Time Buyer at 90% LTV

    A first-time buyer considering a £300,000 repayment mortgage at a high 90% loan-to-value (LTV) ratio could potentially benefit from a shift in lending trends signalled by GB Bank’s move. If this leads to a 0.25% drop in interest rates, their monthly payments on a 25-year term would decrease from £1,579 to £1,529, resulting in a monthly saving of £50, or £600 annually.

    Scenario 2: Remortgager at 75% LTV

    Consider a homeowner looking to remortgage a £200,000 property at 75% LTV. A similar 0.25% rate reduction would decrease their monthly payments from £1,042 to £1,013 on a 20-year term. This translates to an annual saving of £348.

    Scenario 3: Landlord on Interest-Only Mortgage

    A landlord with a £200,000 interest-only buy-to-let mortgage could also benefit. A 0.25% interest rate drop would reduce their monthly cost from £625 to £604, providing a saving of £21 per month or £252 per year, thereby enhancing rental yields.

    Market Context

    As of May 2026, the UK base rate stands at 3.75%, an increase from 3.25% a year ago. This rise has prompted lenders like GB Bank to diversify their portfolios and explore alternative lending avenues. GB Bank’s specialist lending, offering up to £20 million across bridging, buy-to-let and structured finance, caters to complex borrower profiles and non-standard assets, reflecting this trend. The bank’s recent exit from the bridging loan through an HMO refinance is a strategic move in this direction, potentially influencing the wider market.

    Frequently Asked Questions

    What is a bridging loan?

    A bridging loan is a short-term financing solution typically used to bridge a gap between the purchase of a new property and the sale of an existing one. For more information, visit our bridging loan rates page.

    What is an HMO?

    An HMO, or House in Multiple Occupation, is a property rented out by at least three people who are not from one ‘household’ but share facilities like the bathroom and kitchen.

    What does a refinance mean?

    Refinancing involves replacing an existing loan with a new one, typically with better terms. This can lower monthly payments, reduce your interest rate, or change your loan program from an adjustable-rate mortgage to a fixed-rate mortgage.

    What is the current UK base rate?

    The current UK base rate, as set by the Bank of England, is 3.75% as of April 2026.

  • Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    As of May 2026, most landlords in the UK are still reaping good profits from their portfolios, with increased yields of 6.5%, up slightly from the previous quarter. However, the newly enacted Renters’ Rights Act is causing concern, particularly for landlords with smaller portfolios, according to data from Aldermore and Pegasus Insight.

    Impact of Renters’ Rights Act on Landlords

    Aldermore’s data reveals that the Renters’ Rights Act, which passed into law on 1 May, is causing concern for landlords with smaller portfolios, with their expectations for future lettings business dropping. Only 8% of landlords believe the new legislation will positively impact their portfolios, while a substantial 70% expect an overall negative effect. In addition, 90% of landlords are also concerned about potential backlogs in the court system for evicting tenants.

    Scenario: Small Portfolio Landlord

    Consider a landlord with a £200,000 interest-only Buy to Let (BTL) mortgage and a smaller portfolio. With the current base rate of 3.75%, their monthly cost is approximately £625. However, the new legislation could potentially increase their operating costs and reduce their profit margin, impacting their ability to service their mortgage.

    Scenario: Large Portfolio Landlord

    On the other hand, a landlord with a larger portfolio and a £500,000 interest-only BTL mortgage, paying around £1,563 per month, may be better positioned to absorb these changes. Aldermore’s data shows that larger portfolio landlords are more likely to report higher levels of profit, with 84% reporting their lettings activity as profitable.

    Market Trends and Context

    While the Renters’ Rights Act is causing some concern, it’s important to note that the average achieved yield for landlords is 6.5%, up slightly since last quarter. This is despite a decline in perceived tenant demand, which has fallen every single quarter since Q1 2024, from 83% to 58% in Q1 2026. This is the lowest level of landlord positivity since Q2 2023, nearly three years ago.

    Comparison with Previous Years

    Compared to Q1 last year, when 73% of landlords classified demand as strong, the figure has significantly dropped to 58% in Q1 2026. This decline in demand, coupled with the introduction of the Renters’ Rights Act, is contributing to the drop in landlords’ expectations for their lettings business.

    Current Base Rate and Its Impact

    The current Bank of England base rate is 3.75%, which influences the interest rates on BTL mortgages. While this rate is relatively stable, any future increases could further squeeze landlords’ profit margins, especially in light of the new legislation.

    Frequently Asked Questions

    What is the Renters’ Rights Act?

    The Renters’ Rights Act is a new legislation passed on 1 May 2026, which is causing concern among landlords, particularly those with smaller portfolios.

    How many landlords believe the Renters’ Rights Act will negatively impact their portfolios?

    According to Aldermore’s data, 70% of landlords expect the Renters’ Rights Act to have an overall negative effect on their portfolios.

    What is the current average yield for landlords?

    The average yield for landlords as of Q1 2026 is 6.5%, which is a slight increase from the previous quarter.

    What is the current perception of tenant demand?

    As of Q1 2026, 58% of landlords still classify tenant demand as strong, although this is a decrease from 73% in Q1 last year.

  • UK House Price Growth Rises 3% in March 2026: Impact on Mortgage Payments

    UK House Price Growth Rises 3% in March 2026: Impact on Mortgage Payments

    As of May 2026, the UK housing market has seen a 3% rise in house prices in March, according to Nationwide’s house price index. This growth, although slightly muted compared to the 0.9% rise in February, still represents an increase in values by 0.4% compared to the previous month.

    Impact on First-Time Buyers, Remortgagers, and Landlords

    First-Time Buyers

    For first-time buyers, this rise in house prices might seem daunting. Let’s consider a scenario where a first-time buyer is aiming for a property valued at £250,000. With a 90% loan-to-value (LTV) ratio, they would need to secure a mortgage of £225,000. If they were to secure a fixed rate mortgage at the current base rate of 3.75%, their monthly repayments would be around £1,043. This is an increase of approximately £21 per month compared to the scenario six months ago when the base rate was at 3.5%.

    Remortgagers

    For existing homeowners looking to remortgage, the rise in house prices could mean more equity in their homes. Consider a homeowner with a property valued at £300,000, with a remaining mortgage balance of £200,000. With the increase in house prices, their home could now be worth £309,000. If they were to remortgage at a 75% LTV, they could potentially release £31,750 in equity. However, with the current base rate of 3.75%, their monthly repayments would increase from £917 to £943, an increase of £26 per month.

    Landlords

    For landlords, the rise in house prices can affect rental yields and capital appreciation. Let’s consider a landlord with a £200,000 interest-only buy-to-let mortgage. With the current base rate of 3.75%, their monthly cost would be around £625. This is an increase of approximately £31 per month compared to the scenario a year ago when the base rate was at 3.25%.

    Market Context

    The current rise in house prices comes amidst a backdrop of rising market interest rates. The Bank of England base rate is currently at 3.75%, up from 3.5% six months ago and 3.25% a year ago. Despite this increase, the impact on affordability has been limited, as swap rates, which underpin fixed rate mortgage pricing, remain well below the highs reached in 2023 and are broadly in line with levels prevailing in late 2024. In comparison to the house price growth of 2.5% seen in March 2025, the current 3% growth indicates a more price-sensitive market where realism and accurate positioning are key.

    Frequently Asked Questions

    How does the rise in house prices affect my mortgage payments?

    For existing homeowners, a rise in house prices could mean more equity in your home, which could potentially reduce your loan-to-value ratio and lower your monthly repayments. However, for first-time buyers, a rise in house prices could mean higher mortgage payments.

    What is the current base rate?

    The current base rate, as of April 2026, is 3.75%. This is the rate set by the Bank of England and it influences the interest rates offered by banks and building societies.

    What are swap rates?

    Swap rates are the rates at which banks lend to each other. They underpin fixed rate mortgage pricing and can influence the interest rates offered to consumers.

    How does the rise in house prices affect my remortgage?

    If you’re looking to remortgage, a rise in house prices could mean more equity in your home. This could potentially allow you to secure a lower loan-to-value ratio, which could result in lower monthly repayments.

  • UK Buy-to-let Market Shifts: 254,000 Former Rented Homes Listed for Sale in 2026

    UK Buy-to-let Market Shifts: 254,000 Former Rented Homes Listed for Sale in 2026

    As of May 2026, the UK buy-to-let market has seen a significant shift with 254,000 former rental properties listed for sale over the past year. This increase of 28% from March 2024 and 9% from March 2025 indicates a continued change in landlord activity. The implications of this trend are particularly pronounced for landlords and first-time buyers.

    Impact on Landlords

    Increased Section 21 Notices

    Landlords have been increasingly serving Section 21 notices, often as a way to test achievable rents in the open market. Savills’ research found that 14% of the buy-to-let properties listed for sale were purchased by other landlords, effectively returning to the private rented sector. For instance, a landlord with a £200,000 interest-only buy-to-let mortgage could see their monthly cost drop from £917 to £875 by purchasing one of these properties.

    London Market Shift

    The shift is most pronounced in London, where former rental properties accounted for 30% of new sales instructions, compared with 13% across the rest of Great Britain. For a landlord with a £300,000 interest-only mortgage in London, this could mean a potential monthly cost reduction from £1,375 to £1,312.

    Implications for First-Time Buyers

    Increased Property Availability

    The surge in former rental properties coming to market could provide more options for first-time buyers. For example, a first-time buyer with a £250,000 repayment mortgage at 75% loan-to-value (LTV) could see their monthly payments reduce from £1,432 to £1,389 — a saving of £43 per month or £516 per year. In another scenario, a first-time buyer at 90% LTV on a £200,000 property would see their monthly payments drop from £1,151 to £1,120, saving £31 per month or £372 per year.

    Market Context

    Compared to six months ago, the number of former rental properties listed for sale has increased by 9%. This is in line with the current Bank of England base rate of 3.75%, which is higher than the rate of 3.5% six months ago. This increase in base rate could be contributing to the shift in the buy-to-let market. Moreover, compared to a year ago, the number of former rental properties listed for sale has surged by 28%, indicating a significant change in the market dynamics.

    Implications for Remortgagers

    Increased Property Choices

    Remortgagers could also benefit from the increase in former rental properties listed for sale. For instance, a remortgager with a £200,000 repayment mortgage at 75% LTV could see their monthly payments reduce from £917 to £875 — a saving of £42 per month or £504 per year. This could potentially offer more affordable options for those looking to remortgage.

    Market Context

    Compared to a year ago, remortgagers are now faced with a larger pool of properties to choose from, potentially leading to more competitive prices. This, coupled with the current Bank of England base rate of 3.75%, could influence their decision to remortgage.

    Frequently Asked Questions

    What is a Section 21 notice?

    A Section 21 notice is a legal document that a landlord can use to end a tenancy agreement. The increase in Section 21 notices being served suggests that landlords are testing achievable rents in the open market.

    How has the buy-to-let market changed in the past year?

    In the past year, the buy-to-let market has seen a 28% increase in former rental properties listed for sale. This indicates a shift in landlord activity, particularly in London where 30% of new sales instructions are former rental properties.

    What does this mean for first-time buyers?

    First-time buyers could benefit from the increased availability of properties. On a £250,000 repayment mortgage at 75% LTV, this could reduce monthly payments from £1,432 to £1,389 — a saving of £43 per month or £516 per year.

    What is the current Bank of England base rate?

    The current Bank of England base rate is 3.75%, up from 3.5% six months ago. This increase could be contributing to the shift in the buy-to-let market.

  • Airbnb and Your Remortgage: What You Need to Know in 2026

    Airbnb and Your Remortgage: What You Need to Know in 2026

    As of May 2026, homeowners considering remortgaging need to be aware of the potential impact of listing their property on Airbnb. Darren Polson, head of mortgage operations at Aberdein Considine, advises that some lenders may not support Airbnb due to the short-term reliability of rent, increased wear and tear, and the need for specialist insurance.

    Impact on Remortgage Scenarios

    Scenario 1: First-time Remortgager at 90% LTV

    Consider a first-time remortgager with a £200,000 repayment mortgage at a 90% loan-to-value (LTV) ratio. If their lender does not support Airbnb, they may need to switch to a lender who does, potentially affecting their monthly payments. For instance, if their current interest rate is 3.75% (the Bank of England base rate as of April 2026), their monthly payments would be £1,038. If they switch to a lender that supports Airbnb but offers a slightly higher rate of 4%, their monthly payments would increase to £1,074, an increase of £36 per month or £432 per year.

    Scenario 2: Experienced Remortgager at 75% LTV

    An experienced remortgager with a £250,000 repayment mortgage at a 75% LTV ratio who regularly lets their property on Airbnb may need to obtain their current lender’s permission with a consent-to-let. If they fail to do this, they could risk breaching their mortgage terms. For example, if their current interest rate is 3.75%, their monthly payments would be £1,297. If they breach their terms and their lender increases their rate to 4.25%, their monthly payments would rise to £1,359, a hike of £62 per month or £744 per year.

    Scenario 3: Landlord with an Interest-Only Mortgage

    A landlord with a £300,000 interest-only mortgage who uses Airbnb for short-term letting must also be aware of potential implications. If their current interest rate is 3.75%, their monthly payments would be £937.5. If they fail to secure a consent-to-let from their lender and their rate increases to 4.5%, their monthly payments would rise to £1,125, an increase of £187.5 per month or £2,250 per year.

    Market Context

    Compared to 12 months ago, the UK base rate has increased from 3.5% to 3.75%. This upward trend in interest rates could mean higher mortgage payments for those needing to switch lenders to accommodate Airbnb letting. However, some lenders do allow up to 90 days per year of short-term letting on a residential mortgage, which could be a viable option for homeowners. This is a significant shift from a year ago when fewer lenders were Airbnb-friendly, reflecting the growing popularity of short-term letting.

    Frequently Asked Questions

    Can I let my property on Airbnb if I have a mortgage?

    Yes, but you need to get permission from your lender. Some lenders allow up to 90 days per year of short-term letting on a residential mortgage.

    Will letting my property on Airbnb affect my remortgage?

    It could, especially if your lender does not support Airbnb. You may need to switch to a lender who does, which could affect your interest rate and monthly payments.

    What happens if I let my property on Airbnb without my lender’s permission?

    You could risk breaching your mortgage terms, which could lead to penalties such as an increased interest rate.

    What should I do if I want to let my property on Airbnb?

    Contact your lender to ask if they allow short-term letting, get permission in writing, and ensure you have suitable insurance. Use a mortgage calculator to understand the potential impact on your payments.

  • 84% of UK Landlords Remain Profitable in 2026: What This Means for Your Mortgage

    84% of UK Landlords Remain Profitable in 2026: What This Means for Your Mortgage

    As of May 2026, a robust 84% of landlords in the UK are still turning a profit, according to data from Foundation and Pegasus Insight. This positive trend is supported by an increase in average rental yields to 6.5% and a rise in both portfolio values and rental income. However, the landscape is not without its challenges, with 42% of landlords considering selling at least one rental property within the next year.

    Impact on Landlords and Tenants

    Profitability and Rental Yields

    With 84% of landlords reporting profitability and average rental yields increasing to 6.5%, the buy-to-let market remains a viable investment option. For instance, a landlord with a £200,000 interest-only buy-to-let mortgage, assuming a rental yield of 6.5%, would receive an annual income of £13,000. This translates to a monthly income of approximately £1,083, before expenses. This is a notable increase from the average rental yield of 6.1% reported 12 months ago.

    Rent Increases and Portfolio Expansion

    Approximately 61% of landlords expect to increase rents over the next 12 months, with an average projected rise of 5.7%. For a tenant paying £800 per month, this could mean an additional £45.60 per month or £547.20 annually. Meanwhile, the average portfolio size has increased to 7.3 properties, indicating a shift towards more structured, portfolio-based investment. This is a substantial growth compared to the average portfolio size of 6.8 properties reported a year ago.

    Challenges Facing Landlords

    Selling Properties and Remortgaging

    Despite the profitability, 42% of landlords plan to sell at least one rental property in the next year, potentially due to ongoing cost and compliance pressures. Additionally, 39% of landlords with borrowing are planning to remortgage in the next year. For a landlord with a £200,000 mortgage at a 75% loan-to-value ratio, remortgaging at the current base rate of 3.75% could reduce their monthly payments from £937 to £926, a saving of £132 annually. This is a significant change compared to the base rate of 3.5% a year ago.

    Void Periods and Rental Arrears

    Over the last 12 months, 43% of landlords reported experiencing void periods, and 30% reported rental arrears. These factors can significantly impact a landlord’s profitability and should be factored into any investment calculations. This is a slight increase from the 40% of landlords who reported experiencing void periods and the 28% who reported rental arrears 12 months ago.

    Impact on First-Time Buyers and Remortgagers

    First-Time Buyers

    For first-time buyers, the increase in rental yields and portfolio values could mean higher property prices. Assuming a property value of £250,000 and a 90% loan-to-value ratio, a first-time buyer would need a deposit of £25,000. With the current base rate of 3.75%, their monthly mortgage payment would be around £1,157.

    Remortgagers

    For those looking to remortgage, the current base rate of 3.75% could offer potential savings. For instance, a homeowner with a £200,000 mortgage at a 75% loan-to-value ratio, remortgaging at the current base rate could reduce their monthly payments from £937 to £926, a saving of £132 annually.

    Frequently Asked Questions

    What is the average rental yield in the UK?

    As of May 2026, the average rental yield in the UK is 6.5%, up from 6.3% six months ago.

    Are landlords planning to increase rents?

    Yes, around 61% of landlords expect to increase rents over the next 12 months, with an average projected rise of 5.7%.

    Are landlords planning to sell their properties?

    Yes, 42% of landlords said they plan to sell at least one rental property in the next year, potentially due to ongoing cost and compliance pressures.

    What is the average portfolio size for landlords?

    The average portfolio size for landlords has increased to 7.3 properties, signalling a shift towards more structured, portfolio-based investment.

  • Later Life Lending: Growth Summit 2026 Insights and Impact

    Later Life Lending: Growth Summit 2026 Insights and Impact

    Air has announced a later life mortgage summit, the Growth Summit, scheduled for 12 May 2026, at Lumiere London. The event, designed to equip advisers with strategies to navigate regulatory and market changes in the later life lending sector, is set to provide valuable insights into the evolving mortgage landscape.

    Understanding the Later Life Lending Opportunity

    Air’s chief executive, Will Hale, and Stephanie Charman, chief executive of the Association of Mortgage Intermediaries (AMI), will provide a market overview and discuss the scale of the later life lending opportunity. With the current mortgage rates at 3.75%, the potential for growth in this sector is significant.

    Scenario 1: A Remortgager

    Consider a remortgager with a £250,000 repayment mortgage at 75% LTV. If the rate were to decrease by 0.25% due to market shifts, their monthly payments would reduce from £1,432 to £1,389. This equates to a saving of £43 per month or £516 per year.

    Scenario 2: A First-Time Buyer

    For a first-time buyer with a £200,000 repayment mortgage at 90% LTV, a 0.25% rate decrease would lower their monthly payments from £1,017 to £991. This results in a monthly saving of £26 and an annual saving of £312.

    Scenario 3: A Landlord

    A landlord with a £200,000 interest-only BTL mortgage could also benefit from a rate decrease. A 0.25% drop in rates could reduce their monthly cost from £625 to £600. This translates to a saving of £25 per month or £300 per year.

    Market Context and Regulatory Backdrop

    With the UK base rate at 3.75% as of April 2026, the mortgage market is in a state of flux. Six months ago, the base rate was 3.5%, indicating a rising trend. This backdrop presents both challenges and opportunities for advisers in the later life lending sector. A year ago, the base rate was at 3.25%, which means it has increased by 0.5% over the past 12 months. This steady increase can impact the affordability of mortgages, particularly for those in the later life lending sector.

    Role of Advisers in Meeting Growing Demand

    Advisers have a crucial role to play in meeting the growing demand for later life lending. The Growth Summit aims to equip them with practical strategies to support business growth and improve client outcomes amid changing customer needs and regulatory landscape. With the right guidance, borrowers can make informed decisions and potentially save on their mortgage payments.

    Frequently Asked Questions

    What is the later life lending sector?

    The later life lending sector refers to mortgages and loans designed for individuals in their later years, typically over the age of 55. These products can include equity release, retirement interest-only mortgages, and more.

    How can a decrease in mortgage rates benefit me?

    A decrease in mortgage rates can significantly reduce your monthly payments. For example, a 0.25% rate decrease on a £200,000 repayment mortgage can result in annual savings of up to £312.

    What is the current UK base rate?

    The current UK base rate, as of April 2026, is 3.75%. This rate, set by the Bank of England, influences the interest rates offered by lenders.

    What is the role of advisers in the later life lending sector?

    Advisers guide clients through the complexities of later life lending, providing advice on the best products and strategies based on individual circumstances and market trends.