Survey finds majority of brokers concerned about interest rates and regulatory changes
A majority of mortgage brokers in the UK anticipate a rise in the Bank of England’s (BoE) base rate by January 2026, alongside increased regulatory complexity in the property market, according to new research from Butterfield Mortgages.
The survey, which gathered responses from 300 mortgage brokers, found that 69% expect the base rate to be higher than its current level by early 2026. The most common prediction (28%) was for an increase to 5.25%.
This outlook comes despite the BoE’s decision to lower the base rate at its latest Monetary Policy Committee meeting.
Interest rates and borrowing costs were identified as the most significant factors influencing the market over the next year, with 67% of brokers ranking them as the key issue. Government policy was another major concern, as 64% of respondents said upcoming tax and regulatory changes — such as the expected Stamp Duty increase in April — have made property investment more complex.
“It’s no surprise that most UK brokers remain focused on the Bank of England’s interest rate decisions — these have long been, and will continue to be, the key driver of market activity,” said Alpa Bhakta (pictured), chief executive of Butterfield Mortgages in the UK. “However, it is surprising that 69% of brokers expect the base rate to be higher at the start of 2026, especially given January’s decline in inflation and the Bank of England’s indication that further rate cuts could follow.
“This underscores the need for lenders to stay ahead of the curve – our research points to a clear demand for expert guidance in navigating the increasingly complex regulatory and tax landscape. Specialist lenders must utilise their network of regulatory and tax experts to help brokers support property investors to make confident decisions about their portfolios in the coming months.
“While market conditions have shown some signs of improvement, it’s clear that brokers and lenders must collaborate closely. Together, we can address the challenges ahead and ensure the property market remains resilient in 2025 and beyond.”
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