Welcome to our latest market update
This month, we introduce our new Later Life Proposition and share the latest market news
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The UK mortgage 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.
Recent updates show the Bank of England base rate at 3.75% after a cut in December and 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 from February shows typical 2‑year and 5‑year fixed rates around the high‑4% mark, while stronger borrowers at lower loan‑to‑value (LTV) ratios can secure headline rates in the mid‑3% range for 2‑ and 5‑year fixes, especially at 60% LTV. Standard variable rates remain markedly higher – generally in the 6–7%+ region – so there is still a strong incentive to remortgage rather than drift onto a lender’s revert rate.
MORTGAGE APPROVALS
Activity has improved from the lows of 2023 but remains fragile. Bank of England data shows mortgage approvals for house purchase slipping to around 60,000 in January 2026, the weakest reading in about two years and slightly below expectations, suggesting the recovery in demand is uneven and sensitive to rate‑cut expectations and wider economic news.
Trade and 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 central 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 are here to help – please just let us know if you have any questions!
Below we have listed the lowest rates available across a range of LTVs.
Please note these are for illustration purposes only – not all clients may qualify for these. If you need any additional detail, please let us know,
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.60% - Bank of Ireland
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4.17% - Halifax
|
4.08% - Halifax
|
3.97% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
3.91% - Barclays
|
3.91% - Barclays
|
3.91% - Barclays
|
3.89% - TSB
|
| 95% | 90% | 85% | 80% |
|---|---|---|---|
|
4.67% - Natwest
|
4.33% - Virgin
|
4.10% - Barclays
|
4.11% - Barclays
|
| 75% | 70% | 65% | 60% |
|---|---|---|---|
|
4.06% - Virgin
|
4.05% - Barclays
|
4.06% - Virgin
|
4.02% - Halifax
|
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 offer more to its partners and introducers.
Mark’s role will focus on helping customers make informed, confident choices about their mortgage plans in later life, including options such as equity release, where careful, personal advice really matters.
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 and is also qualified to advise on equity release, 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. More people in their 50s, 60s and beyond are looking at how their homes can support their retirement, help children or grandchildren onto the property ladder, or simply give them more freedom and flexibility in later life.
For some, equity release can be one of the options on the table: a way to unlock some of the value in their home, but one that needs to be handled with care, clarity and empathy.
That’s where a specialist like Mark really makes a difference. His role is to slow things down, 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 and introducers, 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.
Annual house price growth held steady at 1% in February, with average prices increasing to £273,176, the latest index from Nationwide has shown.
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Amanda was great, she helped explain my options and found another great mortgage deal for me.
This is the 2nd time I have used Mortgage Advice Bureau and Amanda and I can’t thank them enough.
Would highly recommend them 🙂
– M Charlton
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.
Collated and developed by Maven
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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