As we approach 2025, the mortgage landscape is showing signs of optimism, with new opportunities emerging for homeowners and investors. While traditional lending has remained steady, recent shifts in the financial environment—particularly the UK’s economic recovery and easing inflation—have opened the door for more flexible and tailored solutions.
Although inflation continues to be a key factor in shaping the economy, recent signs of stabilisation are expected to lead to a more predictable environment for mortgage rates. The Bank of England’s recent adjustments to interest rates, aimed at curbing inflation, have set the stage for more favourable conditions in 2025, with some analysts predicting a gradual decline in rates.
International and private banks are eager to extend credit, and with these favourable conditions expected to continue, this upcoming year could be an ideal time to secure competitive financing options. Whether you’re looking to refinance, raise capital, or invest in a new property, there are plenty of options to explore.
With this in mind, here are some of the key trends and insights that could present new opportunities for you in the year ahead:
Increased Demand for International Properties
- Milan is becoming a hub for bankers, lawyers, and luxury investors, thanks to its vibrant financial sector and strategic location near Switzerland and France.
- The Swiss Alps are now offering a blend of lifestyle and investment opportunities, with modern amenities drawing year-round interest.
The Growing Importance of Notional Income for Mortgage Flexibility
For clients with assets under management but limited verifiable income, traditional lending routes can be challenging. A popular strategy now emerging in the market is the use of notional income—typically 4-5% of the portfolio’s value. This approach allows lenders to assess borrowing potential based on assets rather than income, giving clients greater flexibility in securing mortgages or releasing equity.
This strategy is particularly beneficial for those looking to:
- Access capital for new investments
- Help children purchase a property by releasing equity
- Fund personal projects or lifestyle purchases
By utilising notional income, clients can unlock the value of their portfolio without needing to liquidate assets, offering both financial flexibility and the ability to preserve existing investments.
Increased Demand for Inheritance Tax (IHT) Mitigation in Light of Upcoming 2027 Changes
Important information
The investment strategy and financial planning explanations of this piece are for informational purposes only, may represent only one view, and are not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.
We always advise consultation with a professional before making any investment and financial planning decisions.
Always remember that investing involves risk and the value of investments may fall as well as rise. Past performance should not be seen as a guarantee of future returns.
