The Intermediary – December 2025 - Flipbook - Page 9
RESIDENTIAL
Opinion
Time to move
and improve
T
he festive period is fast
approaching. Families
gathering, dining tables
being extended, drinks
slung outside to keep
them cold as there isn’t
enough room in the fridge. Makeshi
beds made up, dining chairs in the
lounge and a strong realisation by
many that perhaps the house has
been outgrown.
New year, new start. The cliché
that many agree to when heading into
January. But in 2026, I think it really
will be. With the greater accessibility
of lenders out there, along with some
regular positive news in 2025 with
regards to the Bank of England’s base
rate being reduced four times leading
to further market confidence, the start
of the New Year will prompt people to
take the plunge.
What that looks like exactly, I’m
not yet sure. With some recent fixed
rate reductions, I’m sure many will
consider a home move, dependent
on the aermath of Rachel Reeves’
Budget, or others might consider
significant home improvements to
make their space work beer for them
now that borrowing is, on the whole, a
lile cheaper.
I’ve recently connected with an
architect whose practice is based
locally to our head office in Colchester,
and they’ve mentioned how many
homeowners are not just considering
remodelling their spaces, but also
factoring in sustainability.
So, when homeowners consider a
move or a remodel, I do feel that, due
to planning laws being relaxed on the
whole – especially with Permied
Development Rights (PDR) expanding
being a real key here – a substantial
remodel, extension or increased
energy efficiency in the existing home
is likely to be a key contender.
We see it with mortgage products,
too. Energy efficiency-linked
mortgage products are in their
abundance, with beer rates or
cashback being offered to properties
with energy performance ratings of A,
B and sometimes C.
This might prompt homeowners to
finally borrow the money to insulate
their home beer, change their
The festive period leads many to realise their home has been outgrown
JONATHAN FOWLER
is managing director and
founder at Fowler Smith
Mortgages & Protection
windows, or introduce an air source
heat pump.
With an architect’s assistance,
the space in a home could truly be
unlocked. Free-flowing spaces, a
seamless combination of interior and
exterior, and more meaningful living
spaces created to suit the family.
If people opt for a move, again
there are benefits. As of the end
of November, some SONIA swaps
are significantly lower than a year
previous. For example, as of 20th
November 2025, a 5-year SONIA
swap rate is at 3.650%, compared to
3.954% a year prior. This gets factored
into lender fixed rates, so overall the
borrowing becomes cheaper.
Although we hear about inflation
easing, energy prices are still
tumultuous – so again, homemovers
might aim to capitalise on ‘green’
mortgage products by buying energy
efficient homes.
So, the start of 2026 I feel is going to
be a busy one. Yes, credit cards might
be a lile more utilised than usual that
soon aer the festive period, but I feel
it’ll be a very busy one for us advisers
in the mortgage industry.
Clients have had to hold off for
long enough until rates eased a lile.
Now they’ve started to, I think clients
are growing tired of waiting, and
now advisers are able to access a real
multitude of products with higher
income multiple offerings and higher
loan-to-values, it’ll prompt them to
either move or improve.
I’m sure lenders will be prepared for
the influx. We definitely are! ●
December 2025 | The Intermediary
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