Autumn 2025 Mortgage Market Update

14 October, 2025

Summer saw a strong performance in mortgage approvals, with figures up over 4% compared to the same period last year. As we move into Autumn, demand remains robust, particularly among First Time Buyers and Movers.

While the pace of interest rate reductions has slowed compared to earlier in the year, average rates are still more than 0.5% lower than they were this time last year. Much hinges on the upcoming Autumn Budget, and there is cautious optimism that a more fiscally prudent statement in November could help stabilise financial markets and support further rate improvements.

The Bank of England remains inclined to reduce the base rate further. Although any future cuts may come more gradually in 2025, there is still room for rates to fall—potentially encouraging more First Time Buyers and up-sizers to step into the market.

Encouragingly, lenders remain eager to lend, supported by strong financial positions and operational capacity. This lending appetite is likely to be further boosted by the FCA’s plans to ease mortgage restrictions, including increasing permitted mortgage-to-income ratios—broadening access for a wider range of buyers.

As always, please get in touch with one of our mortgage advice partners, based in our sales offices for up to date advice on interest rates and mortgage criteria.