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Buy to Let Mortgage Predictions for 2024

3rd Jan 2024

The beginning of a new calendar year tends to bring with it hope, New Year resolutions and of course, mortgage market predictions.

UK Finance, the trade association for the banking and finance industry, recently released its predictions for the next two years, in a Mortgage Market Forecasts document that was published on 11th December 2023.

Within its forecasts, UK Finance predicts that total gross Buy to Let mortgage lending will drop from £28bn in 2023 to £26bn in 2024, with £26bn also predicted for 2025. It should be noted that within the 2022 Mortgage Market Forecasts document, UK Finance predicted that the total gross Buy to Let lending would be in the region of £43bn. What should be noted is that these figures do not include product transfers. A product transfer is where a landlord moves onto a new product with their current lender, at the end of their existing product. The predicted remortgage activity did not materialise during 2023 for a number of reasons, including, a higher proportion of landlords opted for a product transfer rather than remortgaging to a new lender.

As for predictions, we believe the £26bn provided by UK Finance is conservative. What that figure will be, will be down to a number of factors. As we move into 2024 stability has returned to the market with SWAP rates inching downwards since the hold on Bank Base Rate back in September. Lenders will also be looking to obtain their market share and will aim to offer competitive products and criteria to enable them to achieve their 2024 lending targets.

Professional mortgage advice has always been important for Buy to Let investors, but in the current market, with complexity and diverse offerings available from lenders, it’s probably fair to say that it’s now a necessity. A professional mortgage adviser will be best placed to research the market to find the right deal for you and will also have access to lenders that customers are not able to access directly.

It’s highly recommended to seek legal advice, and stay up to date with changes in UK landlord and tenant law. You could consider joining a landlord association such as the NRLA to help you stay compliant, save time and stress, save money, and ultimately help see your rental business thrive. Read more about the NRLA.

This information is a general overview and not exhaustive, so be sure to conduct further research or consult legal professionals for specific guidance based on your situation, location, and circumstances.

At 3mc, we have a team of expert advisers who can discuss all your mortgage requirements. If you would like to discuss your options, give the 3mc team a call on 0161 962 7800.

All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.

*Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register https://register.fca.org.uk/s/ under reference 302992. Please note: The FCA do not regulate Business Buy to Let Mortgages.