Mortgage market update | September 2025

The summer seems to have gone in the blink of an eye, and here we are already in September. The housing market hasn’t been racing, but there have been some encouraging shifts worth noting. From easing house prices to lenders stretching affordability, and a further cut in the base rate, the changes are broadly positive for buyers and homeowners.

House Prices Ease Again

Nationwide’s August data shows annual house price growth slowing to 2.1% (down from 2.4% in July), with prices dipping slightly by 0.1% month-on-month.

Chief economist Robert Gardner highlighted that affordability remains stretched, but the pace of growth has cooled as higher mortgage costs weigh on demand.

For buyers, this could mean a little more negotiating room compared to earlier in the year. It is not a dramatic drop, but it does suggest sellers are becoming more realistic on pricing, which could benefit those ready to make their move this autumn.

Full report here.

Lenders Boost Loan-to-Income Multiples

Both HSBC and Santander have made positive changes to how much clients can borrow. HSBC will now go up to 5.5x income for first-time buyers up to 90% LTV, provided minimum income thresholds are met. Santander has also lifted its multiples, with some borrowers able to access 10–24% more borrowing power depending on income and deposit.

This is part of a wider trend we are seeing, with lenders steadily opening up affordability and making borrowing limits a little more flexible. For many buyers, especially professionals and joint applicants, this could be the difference between almost affording and comfortably securing the right home.

Base Rate Reduced to 4%

On 7 August, the Bank of England reduced the base rate to 4.00%, its lowest level since March 2023. The decision was finely balanced, with a narrow 5–4 vote, and came alongside warnings that rising food prices could keep inflation pressures in play.

For borrowers, the move offers some relief, particularly on tracker or variable mortgages.

Accord Expands Support for Foreign Nationals

Accord has increased its maximum loan-to-value from 75% to 90% for applicants without indefinite leave to remain, provided at least one applicant earns £50,000 or more.

This is a meaningful change that opens the door wider for foreign nationals working in the UK to access higher borrowing levels. It adds another option for clients who may previously have been limited in their choices, and shows lenders are willing to adapt criteria to reflect the reality of today’s buyers.

Risk warnings

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