2025 predictions in the mortgage sector 

2024 has been a tumultuous year for fintech and financial services.

With significant elections in the UK and the US, shifting inflation rates, base rate cuts, evolving regulations and growing consumer scepticism, the year has proven to be both turbulent and unpredictable.  

As we look ahead to 2025, the volatility of the past year is expected to persist.

Coupled with rising consumer demand for mortgages in the UK – fuelled by Labour’s plan to build new homes – and the evolving demographic of mortgage applicants, particularly Gen Z, who increasingly have multiple sources of income from freelancing and side hustles, will push mortgage providers to adopt new strategies, and offer more niche mortgage packages and products. 

This shift won’t be limited to the neo-banks, however.

These comprehensive external pressures will catalyse traditional big banks to modernise their legacy systems or face the risk of alienating consumers and losing their market share.

It’s very likely that 2025 will see what are currently considered ‘niche’ mortgage products start to become standard offerings in the industry.

Organisations must embrace such change and move forward by adopting new, more effective solutions, or risk falling behind.

Jerry Mulle is UK MD at Ohpen