Mortgage Market: Preparing for 2026

As we look ahead to what 2026 may bring, the mortgage market is shaping up to be more stable and positive than in recent years. After a period of uncertainty, the past year has broadly performed in line with expectations, and the outlook for homeowners is cautiously optimistic.

House prices are forecast to see growth, with estimates suggesting an increase of up to 4% across the UK in 2026. While this means property values may continue to rise, the good news is that buying or moving home could become slightly less challenging. Improving affordability, combined with changes in the lending environment, may help ease some of the pressures.

One of the key drivers behind this shift is the direction of interest rates. At the end of 2025 inflation fell to 3.2%, a larger drop than many anticipated. This reinforced the view that inflation may have passed its peak. As a result, there is growing confidence that further interest rate cuts could follow throughout 2026.

So, what does this mean for your mortgage? If you’re on a variable or tracker rate, changes in interest rates could directly affect your monthly payments. If you’re on a fixed rate ending in 2026, or beyond, it’s worth planning ahead. Market conditions can change quickly, and reviewing your options early could help you secure a deal that suits your circumstances.

Even if you’re not planning to move or remortgage immediately, 2026 could be a good time to review your mortgage and overall financial position. Small changes in rates, terms, or lender criteria can make a meaningful difference over time.

Every homeowner’s situation is different. Get in touch today and understand how the evolving market may affect you and what steps you can take to stay ahead. Preparing early could put you in a stronger position.

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