Market snapshot: Poised for growth – Beardmore

There are plenty of reasons to be optimistic for the year ahead, with expectations of future base rate cuts, as well as clear signs of growing borrower confidence.

Building on solid foundations 

The Intermediary Mortgage Lenders Association (IMLA) has predicted £275bn in gross mortgage lending for 2025, and our outlook is optimistic, especially as we see the release of the pent-up demand from the last couple of years.

But what excites me the most about the current market is remortgaging, which presents a real opportunity for our community. According to UK Finance, c.1.8 million fixed rate mortgages will mature in 2025. Many homeowners will consider their options, and some will ask about product transfers (PTs).

UK Finance predicts that lending totals for PTs will soar to £254bn in 2025, the largest market since 2018. As millions of customers reach the end of their fixed-term deals, our industry has a chance this year to make the consumer experience seamless – whether that’s for remortgaging or PTs. 

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First-time buyers remain an active force 

Overall, first-time buyers are still well-placed to step into the market in 2025. Our Ignite broker search data has revealed a surge in first-time buyers looking for mortgages, doubling between 2023 and 2024. It’s an undeniable signal that confidence is returning to the market.

That said, affordability issues certainly haven’t disappeared. Many of these first-time buyers will have benefitted from financial support from loved ones, with our data showing that families supported a record 335,400 home purchases in 2024. But we know that many aspiring homeowners won’t be able to rely on generous gifts from the Bank of Family. 

However, there are options out there for first-time buyers, with Moneyfacts reporting how low-deposit 95% mortgage availability has reached the highest level since 2020. The market also remains stable – in February, the average shelf life of a mortgage product rose to 36 days, up from 21 days in January. 

In any case, advice from a professional mortgage adviser is crucial. Advisers can help buyers navigate the complexities of the market, offering access to exclusive mortgage products and tailored solutions that fit their unique financial circumstances.

Technology is here to help 

One thing I really want to stress is the value of technology in the mortgage process. In 2025, I believe that integration, automation and efficiency will continue to be the watchwords of progress. Ultimately, tech tools save advisers precious time on repetitive admin tasks during the mortgage process, enabling them to focus more on their clients’ individual and sometimes complex needs. This paves the way for better choices and outcomes for both advisers and their clients. 

To my mind, artificial intelligence (AI) will never replace the hard-won experience of a professional adviser, but what it can do is enhance our current service offering. There is certainly a world where a surveyor or adviser will use AI in the same way as a sourcing platform. 

In essence, AI is a tool and a resource, but it will always be the adviser who makes the final recommendation to the customer. Investing in tech will help drive efficiencies while allowing advisers to continue to focus on what they do best: providing holistic and tailored advice. 

Final reflections 

As first-time buyers look to enter the market and competition heats up, those who look after their customers and regularly check in with them will have the best chance of success.

We must be proactive; people buy from people, and the adviser must build that personal relationship with the client. Technology can help support advisers in making their business more accessible. For example, an adviser can use a CRM to create automated reminders to touch base with a customer every 12 months. 

In the end, I am confident that technology will play an even more central role in our daily interactions with customers, but it will not replace advisers’ valuable expertise, experience, and intuition. Right now, the market foundations are steady and primed for growth.

Our next task is to build on this momentum and seize the opportunities ahead.