Mortgage market update | October 2025

Autumn is here, and the mortgage market continues to shift in small but meaningful ways. We’ve seen one lender stretch income multiples further, another improve policies for self-employed and buy-to-let clients, and fresh Bank of England data showing that some buyers are pausing until after the budget. Rates, however, have been holding steady, with small moves in both directions.

Exclusive Access to 6x Income with BOI Bespoke

We are excited to share that Muvado now has access to an enhanced 6x income multiple through Bank of Ireland’s Bespoke pilot.

Previously capped at 5.5x, this new limit applies to applicants earning at least £50,000 (sole) or £75,000 (joint). It is a significant step for clients with strong incomes but limited deposit, giving more borrowing power in a responsible way.

Because this is an exclusive pilot, it is not widely available. It could make all the difference for clients looking to secure their next home.

Barclays Policy Enhancements

Barclays has introduced a series of positive updates designed to make borrowing more flexible:

• Self-employed boost – 100% of Profit After Tax (PAT) can now be used in affordability assessments, unlocking higher borrowing for many.

• Reduced threshold – the minimum loan size for PAT acceptance has been lowered to £700k, making this option more accessible.

• Interest-only improvements – for clients with at least £500,000 equity, the maximum LTV when the repayment strategy is property sale has risen to 75%.

• Buy-to-let changes – maximum loan sizes increased from £500k to £550k for both new builds (60–75% LTV) and flats (70–75% LTV).

  
  

These updates give more choice to a wider range of borrowers, from business owners to landlords, and make Barclays one of the more flexible high-street lenders this autumn.

Market Activity Slows Ahead of the Budget

The Bank of England’s latest figures show mortgage approvals dipping slightly in August to 64,700, down by around 500 compared with July. Net mortgage borrowing also eased to £4.3 billion.

It is a modest change, but one that reflects what we are seeing with clients. Many buyers are pressing pause, waiting to see what the upcoming budget will bring before committing.

Sellers are also having to stay realistic on pricing, which could work in buyers’ favour once confidence picks back up.

Full article here.

Rates Hold Steady Overall

The Bank of England reported that the effective rate on newly drawn mortgages was 4.26% in August, a very small drop and the sixth month in a row of gradual easing.

Day to day, September and early October have been more mixed. Some lenders have trimmed their fixed rates slightly, while others have nudged them back up again, leaving the overall market fairly flat.

For clients approaching the end of a fixed deal, it is still a good time to review options. Even when the market feels like a “non-event,” switching to the right product at the right time can still make a meaningful difference.

Risk warnings

Your home may be repossessed if you do not keep up repayments on your mortgage