November 2025 Mortgage Market Outlook: Confidence is strong, and appetite is high
A window of opportunity, before the Autumn Budget potentially shifts the landscape.
The Bank of England’s decision to hold the base rate once again brings continued stability to the lending environment, but it’s a stability that may prove short-lived.
With potential reforms to property taxation and broader fiscal strategy expected later this month, lenders, especially private banks, are moving early. They’re pricing competitively, leaning into proactive deployment, and seeking out well-structured deals.
For introducers advising high-net-worth and ultra-high-net-worth clients, this is a pivotal moment to secure terms while confidence remains high and competition is driving value.
Private Banks: Appetite Accelerates Amid Market Gaps
Private banks are showing notable urgency in Q4 2025, and it’s not just about competitive pricing. Appetite is high because several structural trends have created opportunity and capacity:
- A slower year for HNW purchases: According to Savills, sales volumes in the £10 m+ property segment of London were down 8%, with many speculating that this is due to clients having taken a ‘wait-and-see’ approach, delaying acquisitions due to stamp duty reform or the broader political climate. That has left many private lenders under-deployed relative to their target.
- The flight of wealth: The much-publicised migration of high-net-worth individuals from the UK has softened the top end of the residential market, particularly in Prime Central London. With fewer active buyers, private banks are sharpening terms to attract the right clients; especially those buying, refinancing, or restructuring existing assets.
- A drawback to the UK: Despite recent outflows, international appetite for UK property is quietly returning. With valuations in Knightsbridge, Belgravia and Mayfair well below historic highs, international clients, particularly from the Middle East, are re-engaging. Private banks are actively supporting this return, especially for clients seeking to acquire in corporate structures or alongside wider estate planning.
“This isn’t just competitive lending, it’s strategic. Private banks are targeting high-quality, complex borrowers with clear intent.” Geoff Garrett, Co-Founder & Specialist Debt Adviser
Retail, Challenger & Building Societies: Quietly Competitive, Structurally Smart
While private banks are driving strategic deployment, retail lenders and mutuals are quietly delivering value, particularly at lower LTVs and for clients with clean credit.
Headline rates as low as 3.73% at 60% LTV for 2-year fixes and tracker margins from just +0.10% demonstrate that mainstream lenders remain highly competitive. More notably, building societies and challenger banks are leaning into structural flexibility, offering notional income modelling and asset-backed affordability that’s helping bridge the gap for clients post-liquidity event or navigating income complexity.
In a market where prime property values remain below peak, and clients seek certainty ahead of potential tax policy shifts, this tier of the market is proving particularly effective for:
- Refinancing clean, lower-LTV portfolios
- Supporting borrowers transitioning from corporate roles into wealth preservation
- Capturing pricing benefit before a potential spring uplift in demand
For introducers, these lenders offer high-efficiency execution and surprising flexibility. This is ideal for clients who don’t fit the private bank mould but still require tailored support.
What This Means for Sectors of Influence
Right now, we’re seeing structured lending agreed at pace, with strong lender appetite across:
- Tailored solutions for trust-owned, offshore, or multi-jurisdictional cases
- Speed of execution from lenders eager to place capital before year-end
At Henry Dannell, we’re working closely with introducers to not just access market-leading terms, but structure borrowing that supports broader financial, tax and estate planning objectives.
This is not a time for hesitation. It’s a time for strategic action, before Budget announcements shift the parameters.
Join Our Post-Budget Outlook Webinar
We’ll explore:
- Key takeaways from the Autumn Statement
- Lending market reactions across retail, private and specialist spaces
- What introducers need to be doing now to future-proof 2026 planning