Market Watch: Workin’ 9 to 5? If only… – Mortgage Strategy

Welcome back after the long, hot, hot, hot summer. The smiles I have seen recently are definitely worn by those whose kids have just gone back to school.

Juggling this job and long school holidays is no mean feat. You all have my respect.

So, the mortgage market is back in session and, to kick off, and because of the new trend started by the Orange One, I have decided to rename this column Monty Watch. In fact, this entire publication will now be called Monty Strategy, while all mortgage awards will now be known as The Montys.

We have brokers working much more than 9 to 5; inflation singing, ‘Here You Come Again’

I would like to congratulate Coreco, Mortgage Intelligence and One Dome for winning all the categories this year in one of the most open voting procedures ever, and am honoured to have received Mortgage Personality of the Year with a record 187% of the vote.

I have also been in touch with my mate, Gian… er, I mean Jonny, and we have agreed to sell off parts of the mortgage industry to the highest bidders, with 1% of the money raised being ploughed back into grass-roots companies.

Ami is now sponsored by Coke Zero and Disney, while the FCA is brought to you by Rolex and Lindt Chocolate. The MPC members have all been replaced with kings of my choosing, and the new governor assures me we will have nothing to fear anymore from inflation, which is now banned.

The other talking point is the sad passing of the Queen of Country, Dolly Parton. I have heard a lot about her in the past few days and we can all learn something from the amazing person she was, having that rarest of abilities to remain apolitical but promote some incredible causes and garner favour from both sides of the US political divide. Spread love, not hate.

Juggling this job and long school holidays is no mean feat

An astute businesswoman, witty, intelligent and a music legend, if Dolly had spent 30 years in the mortgage market rather than Nashville, I suspect she would have felt remarkably at home as our industry often seems to wear a Coat of Many Colors. We have brokers working much more than 9 to 5, inflation singing, ‘Here You Come Again’, borrowers desperately searching The Bargain Store, and anyone rolling off the last of the low-rate mortgages singing, ‘Jolene… please don’t take my rate away.’

Now we have the Potential New Boyfriend, Andy Burnham, after what can only be described as a perfectly executed coup, becoming the main star and going straight in at Number 10 with a bullet, singing his own blend of Manchester soul. At present he is choosing to play the song When Life is Good Again, which is at least refreshing and just what the country needs.

In fact, there is a little Light of a Clear Blue Morning breaking through, with the Resolution Foundation saying that, actually, UK productivity appears to have found a bit more spring in its step, growing by around 1.1% a year since late 2024, comfortably ahead of the rather more pedestrian 0.2% estimate from the Office for National Statistics.

Both the EU and the US look to be in the mood to increase rates this month, but I still think it will be a pointless exercise in the UK

According to Zoopla, after a quieter summer, buyers seem to be saying Here I Am, with searches for properties up 7% year on year over the past four weeks. Also, consumer confidence in the UK is at its highest since the Labour party returned to power, as households are growing more optimistic about their personal finances.

However, things are going to get tougher now the summer recess has ended: the realities of a Budget; higher energy costs amid darker, colder nights; and the battle for funds and for the hearts and minds of both the public and the markets begins in earnest.

The housing market will be a key focus and, while we cannot realistically expect massive changes like the axing of stamp duty in the first Budget, we may see a road map that leads towards this.

Also, don’t rule out a possible general election next year as Burnham will know that, to really tackle his agenda, he needs the type of money that can only come from changes to one of the main taxes, which will probably need a new mandate. This will be better than playing around the edges and further damaging businesses and landlords, and taxing the wealthiest too much so they all up and leave.

After the summer lull, lenders seem to be Starting Over Again, with some welcome criteria changes appearing across the market

It is going to be a fascinating few months as we see his first real policy initiatives, and so far he has shown all the communication skills that the last PM sadly lacked.

He is also helped by the implosion of Nigel ‘£5m but I beat a bin’ Farage and the questionable left-hook student politics of Zak. A resurgent Kemi will be interesting, however, though she remains far more popular than her depleted party as a whole. Who will be the remaining Islands in the Stream?

The Bank of England, meanwhile, has some tough decisions as the Middle East conflict continues to settle into its own trenches and energy prices lurch upwards again, raising the spectre of a Hard Candy Christmas for many.

Both the EU and the US look to be in the mood to increase rates this month, but I still think it will be a pointless exercise in the UK given that this is not homegrown inflation. A stayed hand, letting the markets do their work, still looks the most sensible option to me. Which is probably why I shall never be governor of the Bank of England, with my U in A-Level maths.

While we cannot realistically expect massive changes like the axing of stamp duty in the first Budget, we may see a road map that leads towards this

With almost cunningly skilful linguistic rhetoric, this bridges nicely into what those coquettish money markets have been up to for their summer hols. Since the previous column, three-month Sonia has fallen asleep on its sun bed and stayed at 3.75%, while swaps have gone up in Blue Smoke.

2-year money is up 0.39% at 4.33%

3-year money is up 0.44% at 4.38%

5-year money is up 0.44% at 4.43%

10-year money is up 0.42% at 4.66%

What of the mortgage market itself? After the summer lull, lenders seem to be Starting Over Again, with some welcome criteria changes appearing across the market.

HSBC has increased maximum loan amounts and will now offer 95% LTV to £570,000 on houses, and 90% LTV up to £775,000, as well as 85% LTV to £3m.

It was brilliant to hear of Working in Mortgages’ new Rising Talent Community, to help mortgage professionals build confidence, connections and careers

Nationwide has eased its criteria for clients on a visa if applying with a UK national, opening up standard criteria to 95% LTV with no minimum income. Borrowers will have access to more interest-only options. Sometimes the best changes are Pure & Simple.

Meanwhile, Two Doors Down, the cuddly Coventry will now lend up to 6.5 times income to 95% LTV, has increased its LTV limits on new-build properties, and we are now able to do further advances online.

Family Building Society has enhanced its new-build criteria, lending on blocks up to 10 storeys; Hanley Economic Building Society has launched its first range of holiday-let mortgages; and Skipton International has introduced limited company lending for expat and international property investors.

Burnham is choosing to play the song When Life is Good Again, which is at least refreshing and just what the country needs

Finally, it was brilliant to hear of Working in Mortgages’ new Rising Talent Community, backed by Ami and Imla, to help mortgage professionals build confidence, connections and careers. It launches with a webinar on 14 September, covering mentoring, personal brand, networking and getting more from events.

What a wonderful industry we are. I wish you all a great last part of the year, and remember, I Will Always Love You.

Andrew Montlake is a director at Coreco

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This article featured in the September 2026 edition of Mortgage Strategy.

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