Industry figures provide their predictions for the 2025 mortgage market.

Leon Diamond, CEO, LiveMore:

“The later life lending market will continue its growth trajectory into 2025 – we saw our revenue triple and lending double in 2024. While this market remains highly underserved, however, there is huge potential for brokers, with some £200bn in interest-only mortgages set to expire over the next 10 years.

“My hope is that as 2025 progresses, the wider market will increasingly understand that later life lending is now mainstream and not just equity release (ER) – with people in their 50s up to their 90s and beyond being approved for mortgages they didn’t think possible. Our oldest standard interest-only customer, for example, was 92 years old.

“Although ER will still be the best solution for many people, more mainstream solutions such as standard interest-only, standard capital and interest, and retirement interest-only mortgages are now very much part of the later life product mix.

“AI-driven advances that support brokers with the complexity of the later life market will continue into 2025, so that intermediaries can quickly and easily find the best solution for each individual client according to their specific needs, helping with Consumer Duty. Our excellent in-house tech team will continue to work with the rest of the business and listen to broker requirements so that our market-leading LiveMore Mortgage Matcher provides even more innovative solutions than its already 200-plus products.”

Hiten Ganatra, managing director of Visionary Finance and Mortimer Street Capital:

“It feels like 2025 will be more of the same, as although there are many worldwide unknowns, many opportunities continue to exist for borrowers with many lenders keen to lend with more due to launch.

“Visionary Finance’s sister business, Mortimer Street Capital, has had a very strong first year and we are seeing more and more property investor clients with degrees of complexity that require a level of expertise that can be difficult to find via a traditional mortgage broker.

“It’s been encouraging to talk to a wide range of lenders this year, many of whom provide a range of solutions to savvy investors, but who themselves aren’t widely known and I can see us using a few more new lenders in 2025, as we understand their propositions further.”

Nick Hale, CEO, Movera:

“As we look ahead to 2025, the mortgage industry will be defined by innovation and resilience in the face of ongoing challenges. Embracing technology will no longer be optional—it will be essential for organisations aiming to thrive. At Movera, we see technology as the catalyst for a more efficient, inclusive, and customer-centric mortgage experience.

“The rise of artificial intelligence and machine learning will continue to reshape how lenders assess risk, streamline processes, and personalise offerings. Borrowers will expect seamless, digital-first journeys, with decision-making processes that are both quicker and more transparent. For lenders, integrating smart technology into their systems will be key to meeting these expectations while reducing operational costs.

“We have seen consumer confidence start to recover following both UK and US elections, and this confidence should help create a steadier market. However, shifts are inevitable, and technology provides the tools to adapt, from predictive analytics that anticipate market shifts to platforms that offer real-time insights for better decision-making.

“At the same time, sustainability will remain a driving force. We predict an increase in ‘green mortgages’ as consumers and regulators prioritise eco-conscious investments.

“By embracing innovation and staying agile, our industry has the opportunity to transform these challenges into growth opportunities, building a stronger, more accessible mortgage market for the future.”

Richard Harrison, head of mortgages, Atom bank:

“Housebuilding is clearly a big focus of the new Government, and that’s welcome. Layers of complexity within the British planning system means that as a nation we haven’t built enough homes to meet demand for decades. That housing shortage has contributed directly to the significant house price growth which has made homeownership such a difficult prospect for many first-time buyers.

“Lenders will need to embrace new-build buyers, and provide  a more flexible attitude particularly around maximum LTVs, while I would also like to see a greater level of support for those with only small deposits. The rate of house price growth, hikes in rental costs and the removal of schemes like Help to Buy, has made it harder for aspiring homeowners but first-time buyers need to be able to access the housing ladder. While the Government needs to come good on its promise to build, the onus is also on lenders to be innovative in how we provide the support they need.

“The cost of living challenges of recent years has meant that more borrowers now fall into the near prime category, having had a minor credit blip. Analysis last year from the FCA said around six million Brits had missed a payment, but if those issues were temporary then they may now be looking to access mortgage finance. Given the number of would-be borrowers involved, as an industry we need to see more lenders supporting these customers not only with their needs today, but also helping them regain prime status should they show improvement.”

Adam Oldfield, managing director, Phoebus Software:

Technology will continue to gain in importance as people look to tech to create efficiencies and make their businesses and their personal lives more quicker and easier.

There will be a bigger focus on AI, but it won’t take over the world as many think it will. Ultimately it is only as good as the questions you ask it. It will definitely speed up some activities but will need to be as part of a broader strategy rather than a stand-alone one as this stand-alone approach is where things will get stuck.

Ultimately people still buy from people and the power of that human interaction cannot be underestimated. Sometimes removing all human interaction can be a barrier to people buying, especially with something like mortgages, as if it is too seamless people don’t trust it.

The wider market and the economy should be more stable, as the government settles in. Although it’s been a bumpy end to 2024 in terms of economic growth, we expect the amount of lending to increase next year, with many more remortgages as another significant chunk of fixed rates mature. We also expect a growing number of securitisations which will help boost lending for a number of non-bank lenders

The biggest may be in the building society sector. There are many new CEOs who are driving positive new behaviours and changing the way this sector serves its members, balancing the needs of older customers with pass books, with the needs of a new digitally-savvy generation.

There will undoubtedly be challenges across the year that are impossible to forecast, but the mortgage industry has shown time and again that it can adapt to whatever comes our way.

Tom Renwick, head of business banking, Atom bank:

“2024 has undeniably been a challenging year, but there are reasons for optimism about the state of 2025 and beyond for the commercial real estate (CRE) market. The economy looks to be on sound footing, with inflation under control, the expectation of interest rate cuts to come and GDP growth of around 1-1.5% for the year ahead.

“I would anticipate a rebound in SME lending, with borrowing appetite buoyed by lower interest rates, allowing businesses to expand and invest. Challenger banks and specialists are well poised to deliver a large share of that lending – this group of lenders has outperformed the big five banks for three straight years now, helped by their agility and focus on delivering a great experience to customers, and that is likely to continue.

“While there is optimism for improvements in CRE, we should expect to see notable variances in the recovery between different sectors. Tourism has performed incredibly well in London this year, and with the expectation of higher levels of inbound overnight stays, investors may be keener than usual to back hotels. Meanwhile, the rise of remote and flexible work arrangements will have an impact on the office market, though we are seeing suggestions of rental growth in this segment off the back of a shortage of quality office space and a potential increase in office-based employment.”

Martyn Smith, managing director, Black & White Bridging:

“Borrowers increasingly recognise bridging finance as a strategic tool rather than a last resort, which continues to reflect the sector’s evolving reputation and accessibility.

“Looking ahead to 2025, I anticipate continued innovation and empowered trade bodies that will support the market’s progression. While mainstream banks are unlikely to re-enter the sector directly, there is significant potential for partnerships between banks and experienced bridging lenders, providing borrowers with more tailored solutions.

“However, stability remains a critical factor for sustainable growth. A steady property market and a more predictable political landscape would create the foundation for long-term success. Collaboration and adaptability will also be vital as the industry works to meet the changing needs of borrowers in an ever-shifting financial environment. I do not doubt that lenders in this specialist form of finance will continue to deliver.”

Rob Stanton, sales and distribution director at Landbay:

“With affordability still a major issue for homebuyers, we expect demand for decent rental properties to continue to outstrip supply this year. There are many tenants ready and willing to rent across the country.

“We are finding that, while some disaffected landlords may be sitting on their hands, many are exploring investment opportunities. It will also be interesting to see what effect the change to the temporary stamp duty threshold has at the end of March. This may well encourage tenants to stay on longer and could even boost rental demand. Our recent landlord survey found that 49% thought more tenants would be staying put or renting for longer and 35% said demand might grow because of the change.

“The buy-to-let sector is resilient, surviving countless crises and changing governments over the years. It continues to thrive. As a buy-to-let lender we remain committed to doing our bit to help, innovating to meet the needs of landlords.”