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2030 Vision for UK Mortgages

In the last ten years alone, the UK has faced the credit crunch, self-certification loans ending, affordability tests becoming stricter, interest-only lending becoming tougher, and buy-to-let landlords seeing their profits shrink. And now, Brexit as well as a global pandemic. With all that, what else could be in store for the mortgage market in the next ten years?


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.


Putting aside coronavirus and the long-term impact of Brexit for a moment, we take a look at what the future might have in store for the housing market and mortgages.



House prices

National Building Society reported a rise of just 33% this last decade, a steep decline from 117% the decade before that. As future growth will be amongst the lowest seen in recent decades, we’re not expecting too much movement in the market. Property market speculation won’t be very exciting but that won’t stop the public from wondering about house prices.

Experts assert that house prices and rent will at the very least rise alongside wage growth over the next ten years. This means an annual increase of about 2.5%, totalling 28% by 2030. The Office for National Statistics predicts the UK average to rise from £251,000 to about £321,000 if the upward trend continues. This seems like a reasonable assertion based on the pattern of growth over the last few years.



Interest rates

We’ve enjoyed low mortgage rates for the last few decades, which has encouraged household buying power resulting in moderate house price growth levels. And after the latest cuts from the Bank of England, the base rate is currently 0.01%!

Because mortgage rates were already low, we can only expect the current trends to continue. However, growth may exceed expectations anywhere with a strong labour market like some parts of the Midlands and the North.


What could affect the mortgage market in the next decade?

There are huge opportunities for conveyancing, which could revolutionise the buying and selling process. The Council for Licensed Conveyancers expects that the conveyancing process will be completely digital by 2030. This will expedite the process in the short term and might possibly become entirely client led over the next ten years.

We would also expect to see ‘home files’ available for all homes, so buyers can have all the pertinent information upfront. That way, once an offer is made, everything is provided to all parties to make the entire process a whole lot smoother.


Housing experts agree that by 2030 they’d like to see some real change in the property sector. Transparency needs to be practised, organisation improved, and providers need to start offering services catered to first-time buyers, investors, and people either upgrading or downsizing their homes. 


Thanks to technological advancements, more accurate and easily accessible data will soon be available.

Real-time credit scores and other appropriate customer information could mean both products and pricing might become catered to each individual. This service wouldn’t stop once you become a customer; it’s possible in the near future a product that is continually monitoring your data will be able to update your rate to the best available without any early repayment charges. As a busy medical or dental professional, this time saving measure will likely be welcome news.

The mortgage process and possibly the entire lending industry have the opportunity to go fully digital in the next ten years as well.


How can you take advantage of the mortgage market?

These changes are only what market experts think might happen, and unfortunately there’s there’s no magic formula for telling how different the market will really look in 2030. So it’s best to prepare for any and all eventualities and meet with a trusted mortgage adviser to help you achieve your mortgage and property ownership goals.


Need help to secure a low-cost mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.

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