Rise in mortgage lending predicted over next two years

January 4, 2026 by Brendan O'Neill

Property Market

An increase in the volume of mortgage lending is likely over the course of the next two years, according to the latest projections by the Intermediary Mortgage Lenders Association (IMLA).

This body has just published its forecast for the market during 2026 and 2027. IMLA is expecting gross lending to increase from around £288 billion this year to £320 billion over the course of 2026. It then expects a further rise to £350 billion across the following year. It is citing a number of different factors as the reasons for that optimistic outlook.

Among them are changes to regulation that make lending easier, improvements in mortgage and housing affordability and reductions in interest rates. When it comes to the type of loans that will drive the increase in lending volumes, IMLA is expecting it to be house purchase loans.

It is forecasting £205 billion worth of house purchase loans for next year and £225 billion for the year after that. However, the association also projects a rise in the volume of remortgage loans. Its forecasts for those are £103 billion for next year and then £110 billion for 2027. Buy-to-let mortgage lending volumes are also predicted to go up during this time period.

IMLA executive director Kate Davies told Mortgage Introducer that:

“The housing and mortgage markets continue to play a vital role in supporting the wider UK economy, and our forecasts show that they are set to remain a source of resilience and growth through 2026 and 2027.”

This will keep demand for CeMAP training courses high too.