Welcome to our latest market update
This month, we share news of a great new product for new build homes, introduce our new Later Life proposition and share the latest market news.
Scroll on…..
The market in is in a cautiously improving phase: rates are well below their 2023–24 peaks, activity is rebuilding, but affordability and approvals remain tight by historic standards.
The base rate remains at 3.75% after a hold at the February MPC meeting, with a narrow vote that keeps further cuts firmly in play if inflation continues to ease towards 2%. Markets are pricing in a small number of additional cuts through 2026, which is feeding into lower swap rates and giving lenders scope to trim fixed‑rate pricing.
Across the retail market, average fixed rates have settled below 5%, but there is a big gap between averages and best‑buy deals. Market‑wide data shows typical 2‑year and 5‑year fixed rates around the high‑4% mark, while stronger borrowers at lower LTV ratios can secure headline rates in the mid‑3% range for 2‑ and 5‑year fixes. Standard variable rates remain markedly higher – generally in the 6-7%+ region.
MORTGAGE APPROVALS
Activity has improved but remains fragile. Data shows mortgage approvals for house purchase slipping to around 60,000 in January 2026, slightly below expectations, suggesting the recovery in demand is uneven and sensitive to rate‑cut expectations and wider economic news.
Industry commentary still points to gross mortgage lending in 2026 being modestly higher than 2025, indicating gradual growth rather than a surge.
PRICES
On the property side, national house‑price indices show a gentle upward trend rather than a boom. Nationwide’s February data indicates annual price growth of roughly 1% with small month‑on‑month gains, while other indices put the average UK house price a little above £300,000.
Affordability has improved from its worst point: typical mortgage payments as a share of income are down from 2023 highs thanks to lower rates and wage growth, but they remain slightly above long‑run norms and lenders are still stress‑testing cautiously.
FIRST TIME BUYERS
First‑time buyers are a relative bright spot, helped by the wider availability of sub‑5% fixes and the return of higher‑LTV products.
Recent data shows a high proportion of new buyers now securing rates under 5%, with a growing share borrowing at 90%+ LTV as lenders’ risk appetite improves, even though these products carry higher pricing and tighter criteria. In buy‑to‑let, rate cuts have filtered through but landlords still face tougher tax and regulatory headwinds, as well as stricter interest‑coverage tests, which is suppressing some investor demand despite more competitive headline rates in the high‑3% to low‑4% band for low‑LTV deals.
WHAT NEXT?
Looking ahead to the rest of 2026, the expectation across lenders and commentators is for a slow, rate‑led recovery: modest further cuts in Bank Rate, incremental reductions in fixed mortgage pricing, and a gradual pick‑up in transactions and lending volumes, all contingent on inflation continuing to fall and the labour market holding up
We have been passed some exciting information from a lender which we want to share with you…..
This isn’t public knowledge so unfortunately we can’t divulge the lender yet – sorry!
They are expecting to launch a new product in June which allow buyers to proceed at 95% Loan to Value, where the 5% deposit is fully funded by the housebuilder.
This means no deposit funds are required from the buyers, making it easier to cover their associated costs and put more into their new home.
The product will only be available through a limited panel of brokers (including MAB!).
With Skipton and Hanley also now offering 100% mortgage / no deposit options, it’s brilliant to see lenders offering more products to support buyers.
We will share additional information when we have it.
We are thrilled to welcome Mark Collender as our new Later Life Adviser.
Mark’s appointment is an important step in our commitment to support people throughout their whole home-owning journey and offers more to our partners and introducers.
Mark’s role will focus on helping customers make informed, confident choices about their mortgage plans in later life.
With 34 years’ experience in financial services, Mark has pretty much seen it all – from working one-to-one with customers as an adviser through to holding senior leadership roles, including Head of Retail at Lloyds Banking Group. He has advised on mortgages across all life stages, giving him a rare blend of technical knowledge and real-world understanding of what matters to people and their families.
Later life lending is no longer a niche topic for a small group of borrowers, it has become a part of normal financial planning.
Many in their 50s, 60s are looking at how their homes can support their retirement or help children onto the property ladder.
That’s where a specialist like Mark really makes a difference. His role is to explain how the different later life and equity release options work, and talk honestly about the potential impact – not just today, but in ten or twenty years’ time. It’s about making sure people feel informed rather than sold to, and that families can have open conversations about decisions that may affect inheritances, long-term security and future plans.
For MAB’s partners, Mark becomes a trusted expert they can turn to when clients need this kind of nuanced, sensitive support.
His appointment is another important milestone in MAB’s journey to offer truly lifelong support – from first home, to family moves, to planning for a comfortable and dignified later life.
Below we have listed the top rates available across a range of LTVs. Please let us know if you need any additional information. NB: Danske dont lend in Scotland.
| 95% | 90% | 85% | 75% | 60% |
|---|---|---|---|---|
|
4.55% - Santander
4.55% - Barclays
4.56% - Leeds BS
|
3.99% - Santander
3.83% - Bank of Ireland
4.07% - Halifax
|
3.83% - Barclays
3.83% - Santander
3.84% - Halifax
|
3.74% - TSB
3.74% - Santander
3.74% - HSBC
|
3.62% - Natwest
3.63% - Santander
3.64% - TSB
|
| 95% | 90% | 85% | 75% | 60% |
|---|---|---|---|---|
|
4.62% - Santander
4.66% - Barclays
4.67% - Natwest
|
4.09% - HSBC
4.14% - Santander
4.24% - Natwest
|
3.94% - HSBC
4.04% - Santander 4.04% - Accord |
3.89% - HSBC
3.92% - Barclays 3.93% - Natwest |
3.83% - HSBC
3.84% - Natwest 3.85% - Leeds BS |
Annual house price growth held steady at 1% in February, with average prices increasing to £273,176, the latest index from Nationwide has shown.
Link opens a third party website
Mortgage lending for residential home purchases grew by 16% in 2025 to 720,000 loans, the highest level since 2021, figures from UK Finance show.
Link opens a third party website
I had an excellent experience working with Jordan Moffat and the team on securing my mortgage. From start to finish, the process was handled with professionalism, clarity, and genuine care.
Jordan was incredibly responsive, patient, and thorough, always taking the time to explain each step and answer my questions promptly. What can often feel like a stressful and overwhelming process was made seamless and straightforward thanks to his guidance and expertise.
I truly felt supported throughout, and I’m so grateful for the hard work behind the scenes to get my mortgage approved. I wouldn’t hesitate to recommend Jordan and the team to anyone looking for knowledgeable and reliable mortgage advice.
Thank you again for everything!
Introducing Lewis Klein, our new Marketing Executive…
Lewis is stepping in behind the scenes to drive our digital marketing forward That means keeping you update to date on the industry through all things digital.
Both Sean and Morgan have already hit the ground running and fit in brilliantly with the team. We’re delighted to have them with us!
The information pertained in here is not intended for public consumption, it has been prepared for the partners and friends of Mortgage Advice Bureau. Please do not share with consumers or buyers. Thank you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
In some instances, there may be a fee for mortgage advice. We will not charge a fee to those purchasing a new build home who contact us via the details provided. Other branches of Mortgage Advice Bureau may charge a fee. The actual amount you pay to them will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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