Introduction
As we enter Q3 2025, the UK mortgage market continues to evolve amid global volatility, regulatory change, and shifting borrower needs. Building on an already busy market, brokers and lenders are navigating competitive pricing, affordability shifts, and rising demand for specialist products.
In this quarter’s Specialist Lending Trending, Adrian Moloney, Group Intermediary Director at OSB Group, explores the key market developments and emerging opportunities for brokers and lenders.
Market Trends
Demand for specialist lending continues to grow, driven by increasingly complex borrower needs, cost-of-living pressures and more varied income types. Products like bridging and commercial finance, once considered niche, have become core components of a broker’s toolkit, particularly for chain breaks, short-term funding and business expansion.
Technology is helping to speed up processes, but complex cases still require a strong human element. Brokers who can strike the right balance between digital efficiency and personal advice are best placed to succeed.
The Buy-to-Let market remains resilient, with lenders expanding product ranges and new landlords entering the sector. However, the Renters’ Rights Bill might prompt landlords, particularly larger ones, to apply more selective tenant checks, which could inadvertently impact more vulnerable renters, despite strong underlying demand from tenants.
Meanwhile, regulatory developments such as CP25/11 are under review, aimed at making mortgage transactions more efficient without diminishing the role of broker advice.
The Broker Opportunity
Brokers who combine smart use of technology with hands-on expertise will be well positioned to navigate the current landscape. Helping clients understand the full range of specialist lending options is a key differentiator, particularly as the market evolves.
Now is a good time to revisit fee structures to ensure they align with new consumer duty rules and remain fair across all client types. Those who broaden their offering, stay close to clients, and adapt quickly to market and regulatory changes will make the most of the opportunities emerging over the next three to six months.
Summer Outlook
The industry is hoping for some stability over summer, but activity is still strong, especially as the market adjusts after the stamp duty deadline and looks ahead to August’s rate decision.
Brokers should stay alert to changing demand, manage their pipelines well and keep delivering quality advice as the market keeps shifting.
Our Pick of the Charts
Zoopla House Price Index: May 2025
Lower mortgage rates have increased sales growth year-on-year
The growth in sales rebounded over 2024 as mortgage rates fell, which also boosted demand for mortgages. However, the growth in sales and mortgage approvals has slowed in recent months to more sustainable levels.
Sales have now started to increase once again as confidence improves and those using a mortgage are able to borrow up to 20% more due to changes in affordability testing.
Zoopla House Price Index: April 2025
Buyer demand slows as supply expands
House price inflation is losing momentum as seasonal factors and growing economic uncertainty cools buyer demand, while supply continues to expand. More homes for sale are boosting choice and keeping house prices in check.
Connells Group Q1 2025 Market Report
Number of buy-to-let mortgages by type
Buy-to-let mortgages continue to outpace buy-to-let remortgages.
