The changing shape of the UK mortgage market

What’s in store for the UK mortgage market in 2020? By the end of 2019, there was a boost in the number of buyers, sellers and house prices. With this optimistic end to the last decade, will this mean a bright future for the changing shape of the mortgage market?

Buy-to-let costs – high or low?

According to our latest BTL quarterly analysis from December 2019, there have been significant cost reductions over a three month period. Our CEO, Mark Lofthouse commented ‘there has been a continuous reduction in rates resulting in substantial price reductions particularly for five-year fixed rate products.’ But what does this mean for 2020?

Well, with the right specialist advice and support from brokers, landlords will be able to make the most of low rates in buy-to-let costs in 2020 and remain confident that they are getting the best mortgage to suit their needs.

BTL tenant demand to soar

Even in the wake of 2019’s general election and the ongoing progress in relation to Brexit, there appears to be a market lift in the BTL demand. Based on a survey by the Royal Institute for Chartered Surveyors (RICS), the number of buyer enquiries has drastically risen in January.

Based on figures from this survey, the data shows that:

  • Enquiries rose to a net balance +23% from the previous month’s +19%
  • Sales agreed gained an increase to +21% net balance.

The question is, how might these figures develop towards the end of the quarter and further into 2020?

Residential mortgages at a historic low

Based on our latest product data analysis, the UK mortgage market has seen some big cost reductions over 2019, particularly over the last five years. Based on this data, Mark Lofthouse also commented, ‘With mortgage costs down by up to 17.8% compared to January 2015, there are savings across the board that advisers are able to offer their customers. Mortgage costs remain at historic lows and forecasters are predicting that this will continue into 2020.’

Rising mortgage lending

It may come as no surprise that mortgage lending supports over 70% of housing transactions. One figure which may come as a surprise is that, according to UK Finance and Hometrack, gross mortgage lending has doubled to £268 billion between 2010 and 2020. Thanks to house price growth and rising sales, the new decade could see a continued rise in mortgage lending.

Increasing confidence

With so much to be positive about, one could argue a growing confidence in the mortgage industry during 2020. According to IMLA (Intermediary Mortgage Lenders Association), 93% of mortgage intermediaries were confident about the outlook for 2020. So when it comes to the changing shape of the UK mortgage market, we should remain optimistic.

If you’re looking to make your 2020 as successful as possible whether it be through mortgage product or criteria or affordability sourcing, multi-Lender mortgage submission or conveyancing referrals, get in touch with us today on or have a look at our plans to transform mortgage sourcing in 2020 here.