It’s been a turbulent couple of years for property buyers, but according to Santander’s recent market briefing, there’s reason to believe that 2025 could signal a turning point. In this blog, we will discuss interest rates, market confidence, lending improvements in the UK mortgage market and why you might want to buy in London in the near future.
Interest Rates Set to Ease
One of the biggest drivers of optimism is the expectation that the Bank of England’s base rate will fall to around 3.5% by the end of next year.
Lower rates will ease pressure on monthly mortgage payments and, in many cases, increase the amount buyers can borrow.
Confidence Returning After Uncertainty
Santander also highlighted that uncertainty around the November 2025 Budget has caused some hesitation in the market. Once fiscal policy becomes clearer, they expect activity to pick up significantly, as pent-up demand from buyers and movers re-enters the market.
Lending Conditions Improving
Beyond lower rates, lending criteria have also relaxed. Over 2024, stress tests have been eased and loan-to-income multiples increased, allowing many borrowers to access larger loans. Together, these factors create a more positive environment for both first-time buyers and those looking to move up the ladder.
In short, while prices remain soft and rates begin to ease, London could present a window of opportunity that we haven’t seen for several years.
Speak to a London Mortgage Adviser
Investing in the London property market has always been and continues to be a great way to invest your money and build your wealth. If you are looking to purchase a property in London and need to discuss your mortgage options, please feel free to contact our team of mortgage experts at Oportfolio Mortgages, today.
