Mortgage Market: What You Need to Know for 2025

What You Need to Know for 2025

You may be wondering how the expected changes in the market for 2025 could affect you. The outlook could be promising, with potential improvements in affordability, opportunities to secure better rates, and tailored support for those who need.

Improving Affordability & Lower Rates

2025 is forecast to bring some relief as interest rates are expected to decline further. This could help ease affordability pressures that many homeowners have faced in recent years. If your fixed-rate deal is coming to an end, this could be a good time to consider refinancing or securing a new deal. Upcoming stamp duty changes could lead to some market fluctuations. This may mean increased competition and activity, especially in March, presenting potential opportunities or challenges depending on your buying or selling plans.

Fewer Homeowners Falling Behind

The number of mortgage holders in arrears is expected to decrease in 2025, reflecting improving economic conditions and effective lender support. If you’ve struggled with payments in the past, tailored measures, such as payment holidays or temporary rate reductions, could continue to offer relief.

Planning for the Long Term

If affordability improves, 2025 presents an opportunity to reassess your financial goals. Whether you’re considering making overpayments, moving to a more competitive deal, or preparing for future life events such as retirement or family changes, now is a great time to review your mortgage strategy. With the housing market expected to remain stable and demand for properties continuing, your mortgage remains a key part of your financial foundation.

For personalised advice, contact Teddy James Mortgage Solutions today to ensure your mortgage works for you. We are an Eastbourne based mortgage advisors offering friendly, honest, fee free mortgage advice.