The trend of £500,000-plus mortgages is increasingly moving away from Southern England, with significant growth in regions like the Midlands, North of England, and Scotland. This shift is noteworthy as it reflects changing buyer demographics and market dynamics in the UK property market.
What Regions Are Seeing Growth in High-Value Mortgages?
According to recent analysis, while London still dominates the high-value mortgage market, accounting for 42% of such loans, the capital experienced a 2.4% decline in the number of £500,000-plus mortgages since 2021. In contrast, the Midlands saw a 17% increase, the North of England 16%, and Scotland, Wales, and Northern Ireland combined experienced a remarkable 28% rise. This trend indicates a significant shift in buyer interest towards the northern regions.
How Are Borrowing Costs Affecting Buyers?
The cost of servicing a £500,000 mortgage has risen substantially, from £25,100 in August 2021 to £34,100 in August 2026, marking a 36% increase. Despite these higher borrowing costs, changes in affordability stress testing have allowed more higher-earning households to qualify for these larger loans. This flexibility is important for buyers looking to enter the market despite rising costs.
What This Means for Borrowers and Investors
For potential borrowers, particularly those in the Midlands and North, this trend indicates greater opportunities for securing high-value mortgages. Investors may find attractive prospects in these regions as demand for properties priced above £500,000 grows. This shift could lead to increased competition in the housing market outside London, potentially driving up property values in these areas.
