“I think lenders will restrict lending and it will get a bit tighter because of the cost of living,” she said. “Where people might be getting £20,000 or £30,000 more, I think that’s going to come a bit lower.”
The danger of headline-chasing
Mehmood also cautions clients against making decisions based on advertised headline rates, whether from news coverage or AI-generated search results.
“Always looking at the headline rate is not necessarily helpful,” she said. “When you look at the small print, [it might be] if you’re at 60% loan-to-value, or if it’s an energy-efficient property.”
Loan-to-value (LTV) refers to the ratio of the mortgage amount to the property’s value. While lower LTV typically unlocks better rates, it requires a larger deposit or more equity. Mehmood is equally wary of clients relying on AI tools for guidance.