Homebuyers now have the widest choice of mortgages in nearly 20 years, new industry data reveals.
The total number of mortgage offers is now at its highest since 2007 at more than 7,000, according to Moneyfacts.
There was an increase of 650 last year, and 90% and 95% loan-to-value (LTV) deals are now at a near 18-year high.
Fixed deals
Fixed mortgage rates remain below 5% to start 2026, with the average two-year fixed now 4.83% and the five-year fixed at 4.91%, according to the Moneyfacts UK Mortgage Trends Treasury Report.
And the average mortgage rate fell to 4.87%, down by 0.53% from 5.40% in January 2025.
Mortgage rates are lower year-on-year, and the choice of deals is abundant.”
Rachel Springall, Finance Expert at Moneyfacts (main picture), says: “Borrowers and lenders will be in a state of optimism, off the back of a positive 12 months for the mortgage market in 2025.
“Expectations are high for a booming market in 2026. Mortgage rates are lower year-on-year, and the choice of deals is abundant.
“The relaxation in stress testing and expectations for further rate cuts will help ease the affordability constraints on borrowers,” she says.
“First-time buyers are not being left behind by this progress, as deals aimed at those with a low deposit now stand at their highest levels for almost 18 years”.
Improved lending conditions must be matched by increased housing supply.”
Mary-Lou Press, President of NAEA Propertymark, says: “Falling mortgage rates and a growing range of products are welcome signs for the property market in 2026, particularly for first-time buyers accessing higher loan-to-value deals.
“However, improved lending conditions must be matched by increased housing supply to ensure more people can turn affordability gains into homeownership.”
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