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EXPERT ADVICE

What’s going to happen in the mortgage

market in 2025?

David Lauder, Independent Mortgage Adviser with ESPC Mortgages,
makes some predictions for the 2025 mortgage and property market.

n the current financial climate, making earned deposit to be used for the mortgage,
predictions for the coming year is a difficult as opposed to the offers-over bid, which has
Itask. However, here is some of the activity been a regular feature of previous years. In
I expect to see in the mortgage and property principle, this should mean that the buyer
market in 2025. gets more house from their money – along
with the fact that rates have become more
Will 2025 be a seller’s or a buyer’s market favourable during 2024, making monthly
in Edinburgh and the surrounding areas? repayments more affordable.
As 2024 draws to a close and with mortgage
interest rates stagnating at present, the market Interest rate changes in 2024 and
has slowly cooled, with less activity (as can be predictions for 2025 Any Government Initiative Schemes? ESPC Mortgages
expected at this time of year). However, across 2024 brought a positive trend for the first We would hope to see help become available To summarise, we at ESPC Mortgages remain
the year, properties still achieved 101.9% of time since 2020, as the Bank of England rate from Government initiatives in 2025, although optimistic for 2025. The mortgage market is
Home Report valuation on average, a reduction reduced twice, down to the present rate of no firm details are available presently. still competitive and there are good solutions
from 2023’s average of 103.2%. 4.75%. It’s difficult to predict what will happen to be found, tailored to the client’s needs.
in 2025; much will depend on inflation and its What impact will recent events have on The team look forward to this continuing
As 2025 progresses, the hope is that buyer variables, including the recent Labour budget the Edinburgh property market? throughout 2025 and to another successful
and seller confidence will return, but there and American presidential election. However, The Edinburgh market is certainly better year of mortgage approvals.
certainly does seem a bigger window of the Bank of England expects the base rate to placed and more robust than almost all the
opportunity for buyers, particularly first-time remain consistent in the early part of 2025, and rest of the UK and should still remain in a We will work to help more and more people
buyers, of getting a property much closer to then, all being well, gradually decline beyond positive trajectory with price increases, but we get their dream property and are available
valuation. This will allow most of their hard- this period, hopefully reaching closer to 3.5% do expect things to be lower than recent years to help existing and new clients review their
by the end of the year. existing mortgage arrangements to ensure
and slower in the early part of the year, with
activity increasing as the year progresses and they have the most suitable solutions during
The good news is that there’s also been further Bank of England base rate reductions their mortgage journey.
some positivity, with mortgage interest rates hopefully materialise.
regularly receiving fixed-rate reductions on
new products rather than increases. However,
interest rates are unlikely to return to the
record low levels seen in the 2010s; it’s more ESPC mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer mortgage
advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch with the team
likely they’ll settle at a level below current on 0131 253 2920 or fsenquiries@espc.com
rates, but probably higher than those we saw
pre-Covid. Lenders’ typical pricing of rates are The information contained in this article is provided in good faith. Whilst The initial consultation with an ESPC Mortgages adviser is free and
not always a direct correlation with the Bank of every care has been taken in the preparation of the information, no without obligation. Thereafter, ESPC Mortgages’ charges for mortgage
responsibility is accepted for any errors which, despite our precautions, advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
England base rate. it may contain. BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A
MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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