Welcome back to The Mortgage Broker Broadcast. As we hit mid-October, many brokers naturally start planning ahead. And while 2024 isn’t over yet, the truth is this: the decisions you make now will shape your success in 2025 and set the tone for 2026.
The market is shifting.
Interest rates are expected to ease further.
Gross lending is forecast to rise.
Remortgage volumes will surge.
And the buy-to-let landscape continues to evolve.
So in this article, we’re breaking down what the latest forecasts say about 2026, and more importantly, how mortgage brokers can prepare to thrive in the year ahead.
Why Look Ahead to 2026?
The mortgage market is slowly finding its feet again after a turbulent few years. Forecasters predict significant improvements across lending volumes, affordability, and borrower confidence.
Here’s what the numbers suggest:
🏠 Gross Mortgage Lending
- 2024: £275 billion
- 2025: £295 billion
💼 Purchase Lending
- 2024: £177 billion
- 2025: £190 billion
🔄 Remortgage Lending
- 2024: £88 billion
- 2025: £94 billion
That’s real growth — and for brokers, real opportunity. But with an active market comes increased competition, which means brokers need to position themselves as the trusted adviser of choice long before the wave hits.
What the Forecasts Say for 2026
Interest Rates: Easing Slowly but Steadily
IMLA forecasts lower rates, with lenders already pricing based on long-term expectations rather than the base rate alone.
Analysts predict:
- Typical two-year fixes drifting toward 3.5% by late 2024
- Further declines through 2025 and into 2026
- The Bank of England base rate settling around 3%–3.5% by mid-to-late 2026
Inflation is still sticky, so cuts will likely be slow and steady. But the general outlook is positive — improved affordability, stronger buyer confidence, and more movement in the market.
House Prices in 2026
Lower borrowing costs typically push up demand, and many forecasters expect:
- 1%–5% house price growth in 2026, depending on stamp duty, inflation, and overall confidence
- A return to a steady, healthy market, rather than boom-and-bust swings
For brokers, this means focusing on long-term affordability conversations, not just rate-chasing.
Buy-to-Let: A Potential Rebound Ahead
The buy-to-let sector is forecast to grow:
- £38 billion in 2025 → £42 billion in 2026
With cheaper financing and rising rents, many landlords may re-enter the market. But challenges remain:
- Tougher EPC requirements
- Tax changes
- Increasing tenant rights
- Higher acquisition costs
This is where brokers provide huge value. Landlords will rely more heavily on advisers who can:
- Stress-test portfolios
- Assess tax-efficient structures
- Identify high-yield opportunities
- Navigate changing regulations
Remortgaging Will Be Massive in 2026
Remortgage lending will undoubtedly underpin the market next year.
Many clients who locked into higher rates in 2023–2024 will see their monthly payments drop on their next deal — and brokers should be positioning themselves now.
What brokers should do immediately:
✔ Identify clients fixing until 2026
✔ Start retention conversations early
✔ Highlight potential savings
✔ Build a proactive remortgage workflow
✔ Strengthen client communication
You must become the remortgage broker your clients cannot replace.
Comparison sites, direct lenders, and automated retention systems will all compete hard. Your differentiators?
Service, speed, education, trust, and personal advice.
How Brokers Can Prepare for 2026
1. Stay Informed and Share What You Know
Keep up to date with:
- Bank of England updates
- Inflation data
- Swap rates
- Market forecasts
Then turn that insight into:
- Social media content
- Blog articles
- Client emails
- Video updates
Clients value clarity — and brokers who communicate regularly become the adviser they trust.
2. Diversify Your Offering
More brokers = more competition.
More inquiries = more complexity.
Explore specialist areas such as:
- Later life lending
- Adverse credit
- Self-employed mortgages
- Holiday lets
- HMO & portfolio landlords
- Limited company buy-to-let
The market is expanding, and clients want advisers who can handle more than just vanilla cases.
3. Support Your Landlords
Landlords need guidance more than ever. Keep them updated on:
- Rate changes
- Government regulation
- EPC requirements
- Rent increases
- Portfolio expansion strategies
Become their long-term partner — not just their mortgage arranger.
4. Use AI to Free Up Time
2026 will reward brokers who:
- Automate admin
- Streamline tasks
- Improve speed
- Enhance communication
AI isn’t here to replace brokers — it’s here to give you time back so you can:
- Build relationships
- Generate leads
- Deliver a better client experience
Clients now expect fast turnarounds and personalised advice. AI gives you the space to deliver both.
Final Thoughts: Prepare, Don’t Predict
The aim of this episode — and this blog — isn’t to predict the market perfectly.
It’s to help brokers get ready.
2026 promises:
- Lower rates
- More lending
- A stronger remortgage market
- Opportunities across purchase and buy-to-let
- Increased client demand
Success won’t go to the brokers who wait and see.
It will go to the brokers who prepare now.
So:
- Reach out to your clients early
- Strengthen your processes
- Build your remortgage book
- Stay visible, informed, and proactive
And as always — run your own race.