Mortgage rates could be cut in the coming weeks, analysts have forecast, as competition heats up amongst lenders at the start of 2026.<\/p>\n
Financial information service Moneyfacts says in a new report that \u201cexpectations are high for a booming market\u201d this year, sharing data that reveals the choice of mortgage products has risen to new highs.<\/p>\n
First-time buyers are also finding support in looser requirements by lenders, with many more deals aimed at those with a low deposit available, the report finds.<\/p>\n
It shows that product choice overall rose month-on-month, to 7,158 options, up 650 in a year, making the highest level since October 2007. Meanwhile, deals at 90 and 95 per cent loan-to-value brackets are sitting at near 18-year highs.<\/p>\n
Mortgage rates began to fall last year, a trend that is predicted to continue into 2026. In August, the average two-year fixed mortgage rate went below 5 per cent for the first time since Liz Truss\u2019 mini-budget in September 2022.<\/p>\n
Mortgage rates could be cut in the coming weeks, analysts have forecast (Andrew Matthews\/PA Wire)It now sits at 4.44 per cent, according to the data. And a December base rate cut, from 4 per cent to 3.75 per cent, offered an early Christmas gift to many mortgage holders on tracker rates.<\/p>\n
Rachel Springall, finance expert at Moneyfacts, said: \u201cBorrowers and lenders will be in a state of optimism, off the back of a positive 12 months for the mortgage market in 2025.<\/p>\n
\u201cMortgage 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.\u201d<\/p>\n
However, she adds that \u201cmore progress to support underserved buyers would be welcomed amid a lack of affordable housing.\u201d<\/p>\n
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In July, regulators gave lenders the ability to offer more mortgages at high loan-to-income (LTI) levels, which means first-time buyers are able to borrow more to get on the housing ladder.<\/p>\n
The Financial Conduct Authority is also consulting on plans to make getting a mortgage easier for first-time buyers and the self-employed. The watchdog says it is looking at \u201csimplifying mortgage rules,\u201d with changes set to come into effect later in 2026.<\/p>\n
Ms Springall said: \u201cInnovation is set to become a key talking point this year, as expanding options for first-time buyers and modernising regulation are some of the key themes to be reviewed by the Financial Conduct Authority, laid out in its \u2018Roadmap\u2019 for the mortgage market\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage rates could be cut in the coming weeks, analysts have forecast, as competition heats up amongst lenders at the start of 2026. Financial information service Moneyfacts says in a new report that \u201cexpectations are high for a booming market\u201d this year, sharing data that reveals the choice of mortgage products has risen to new […]<\/p>\n","protected":false},"author":2,"featured_media":5311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[],"class_list":["post-5310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n