The latest research looking into the mortgage industry has predicted that the number of approvals will rise, which is being attributed to a variety of factors.
This prediction is taken from research conducted by Alexander Hall, a mortgage advice firm. That company is forecasting a rise of 13.4% in the number of approvals during 2025. If this turns out to be correct, it will take approval numbers to the highest they have been in four years. The prediction has been made based on an analysis of data and market trends.
Alexander Hall looked at data provided by the Bank of England (BoE). It also studied trends in mortgage approval rates during the last two decades. The results were then used to predict how the situation will go for the remainder of 2025.
Among the factors that contributed to the optimistic assessment are improvements in mortgage affordability, a more settled economy and enhanced sentiment within the market.
Alexander Hall found that last year was more stable for the UK market compared with the year before. It brought a rise of 30.8% in approval numbers, following a historically bad year for them in 2023.
According to Mortgage Introducer, the research states that:
“The good news is that 2025 is set to be an even stronger year for the sector, and we’ve already seen a welcome boost in the form of an early base rate reduction, but, unlike last year, we’ve also seen lenders reducing rates in anticipation of improving market conditions.”
This will be a welcome forecast for anyone with CeMAP training.
