As 2025 draws to close, the intermediary mortgage market has a lot to reflect on.
Significant events dotted throughout the year have shaped borrower behaviour, influenced lenders’ actions and impacted brokers’ businesses – sometimes for the better, other times for the worse.
From the change to stamp duty thresholds, rampant product innovation kick-started by a shift in the regulator’s stance on risk, the long lead-up to the Budget and a cut to the base rate to round off the year – there’s been much to contend with and celebrate.
So, before switching off the lights and heading home for a well-earned rest, we asked one last task of mortgage industry professionals – to give us their review of 2025.
Which two events have had the biggest impact on the mortgage industry this year?
The relaxation of stress testing rules, coupled with the return of higher loan-to-income (LTI) ratios, was the top choice of Richard Dana, chief executive of Tembo.
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“It’s been hugely significant for first-time buyers and under-served groups, who often fall short on affordability, not because of weak finances, but because house prices have accelerated far beyond income growth. The shift towards higher LTIs has given these buyers more realistic borrowing power,” he added.
For Sarah Tucker, founder and CEO of The Mortgage Mum, it was the expansion of 100% mortgages.
She said: “In reality, these products will only ever serve a relatively small cohort. But their impact on the perception of the market was transformative. We saw an extraordinary amount of interest from borrowers who would otherwise have stayed silent, assuming they can’t get onto the housing ladder for years. This news changed that perception, and it has led the way in terms of lender innovation.
“The mortgage space now feels faster-paced and more solution-driven, and that feels amazing.”
And of course, changes to the base rate and the Budget ranked highly.
Richard Sexton, commercial director of proptech Houzecheck, said: “To a degree, surveying is a volume game. Transactions are everything: they are the lifeblood of the industry – even for proptech firms like ours. 2025 has been an outstanding year for us, but the housing market’s sharp slowdown in the final quarter has not been ideal.
“For that reason, I’d say the most significant events this year were the Bank of England… cutting rates in the second half of 2025 and the Autumn Budget, the run-up of which caused the market to pause. The latest rate cut signalled a more positive direction of travel. Although inflation remains persistently and above the 2% target, I think the toughest period might very well be behind us now.”
What happened this year that could impact your business next year – for the better or worse?
Michelle Niziol, chief executive of IMS Property Group, notes how the impact of the continued strain on household budgets has a knock on effect on business.
She said: “Even as confidence slowly returns, many borrowers are still facing significant payment shocks from legacy fixed rates, which means advice is becoming more complex, more sensitive, and more time-intensive. That will be the biggest carry-over into 2026.”
Tucker agreed, saying: “It was one of the most professionally demanding years we’ve had. Not because of volume, but because every case required a great deal of research, service and continued repricing.”
While client meetings may take longer, both brokers see plenty of opportunity in 2026, resulting in changes to criteria and rates.
Niziol continued: “The return of more flexible underwriting for self-employed, contractors, and complex income clients is a major opportunity for specialist brokers like us. It plays directly to advisory skill rather than just rate-driven transactions.”
Tucker added: “Positive news from the BoE last week is a welcome Christmas present and a fantastic boost of positivity going into a new year.”
For Mobeen Akram, head of partnerships and new homes at One Dome, the greater regulatory flexibility that the market has seen this year will have the biggest impact on brokers’ businesses next year.
“I expect this to accelerate the development of more tailored mortgage products in 2026, while increased reliance on data, automation and smarter affordability modelling will push lenders and intermediaries to invest in technology that improves decision-making, reduces friction and delivers better consumer outcomes in a more complex market,” Akram added.
Matthew Leggett, senior mortgage and protection adviser and team lead at Mortgage Scout, says the biggest shift he’s seen this year has been how lenders are approaching their existing customer base.
“Many are now contacting borrowers directly when deals are nearing maturity, encouraging them to renew without seeking wider advice.
“The risk is that customers miss out on understanding the whole picture. They may not realise they could secure a better deal elsewhere, or make long-term improvements to affordability by adjusting their term or exploring a different structure. For advisers in 2026, it means staying ahead of those conversations, contacting clients earlier and strengthening the relationship throughout the life of the mortgage,” he added.
Sexton, meanwhile, has concerns over how the Budget announcements will impact landlords next year.
“The Budget has delivered another hit to landlords’ profitability with more tax rises on rental income and high-value properties hitting buy-to-let profitability hard, creating uncertainty. If buy-to-let investor confidence fades further, we risk a fresh wave of properties flooding the market, potentially suppressing prices. That remains the key uncertainty for all who rely on steady, positive transaction growth,” Sexton added.
Compared to previous years, how did 2025 fare?
Akram sees 2025 as “the year of stabilisation”, while Tucker has labelled it the “reset year”.
Tucker said: “Compared to the volatility of 2020-22 and the shock of 2023, 2025 was calmer, but still constrained. There were fewer panic decisions, more measured borrowing, and a greater focus on sustainability rather than stretching to breaking point. Transaction volumes didn’t roar back, but advice quality and borrower intent improved significantly.”
Nick Jones, the mortgage sales and marketing director at Access FS, also views 2025 in a positive light.
“Compared to previous years – I am thinking about the carnage in the market following the mini Budget and the soaring rates that followed – 2025 was a dream. The country had some steady growth in mortgage approvals and decent lending growth in lending. At Access, we outperformed the market – we are 29% up on mortgage revenue in the 11 months of January to November 2025 than we wrote in the whole of 2024,” he said.
For Leggett, who started advising during the pandemic, 2025 has been his strongest year so far.
“Every year has brought its own level of uncertainty. What has become clear is that uncertainty often increases the demand for advice rather than suppresses it.
“This year, my clients have been far more focused on what their monthly payments will look like rather than simply maximising their borrowing. That has led to deeper conversations, more trust and more long-term planning. So while the headlines have been mixed, 2025 has been a very positive year for advisers who stay proactive and client-centred,” Leggett added.
What do you need from lenders, regulators and the government in 2026 to support your business and the mortgage market?
More stability, says Dana.
He added: “I would love to see a steady policy environment, without months of Budget speculation, leaks and political noise, as I think this would go a long way toward restoring consumer confidence. The mortgage market reacts very quickly to uncertainty, and when households feel nervous about what might be announced next, they delay decisions. That has a real impact.”
He also wants to see continued support for affordability initiatives and clear, consistent regulation from the FCA and Bank of England.
“2026 will be strongest if lenders can plan confidently, consumers can make decisions without fear of sudden policy shifts, and the government prioritises long-term housing strategy over short-term political theatre. A calmer environment benefits everyone, especially the people trying to get into their first home,” he added.
Niziol’s message to lenders is for their innovative focus to be on sustainable affordability, not just “product gimmicks”.
“I’d like to see continued flexibility around real-world income, sensible stress testing, and greater support for professional landlords, self-employed borrowers, and later life lending”, she added.
Jones, meanwhile, wants more innovation in low-deposit and later life products, coupled with some “aggressive awareness campaigns to highlight alternatives to traditional 20% deposit mortgages” to make sure first-time buyers know how much the market has to offer now.
He also wants to see some movement on digital conveyancing reforms, highlighted by the Open Property Data Association (OPDA).
“We need to reduce the risk of chains collapsing and boost overall market momentum,” he added.
