Struggling to Get a Mortgage? The Effect of Inflation

Securing a mortgage can feel overwhelming, and new research shows just how common those struggles are. According to Shawbrook’s latest Home A-loan report, one in three UK adults has found it difficult to get a mortgage, with 30% trying more than once, and 13% making several attempts before finally being approved.

Confidence is also low among would-be borrowers. Only 20% of people say they feel completely confident they’d be approved for a mortgage. That figure drops to just 10% for those with adverse credit histories. If you’ve had a missed payment, default or CCJ, this might feel very familiar. But while it can be frustrating, the wider economic picture may slowly be shifting in a way that could help homeowners and movers in the months and years ahead.

Falling Inflation in 2026?

Economists and financial analysts expect inflation (the increase in price overtime) to continue easing into 2026, and this could bring encouraging news for anyone hoping to secure a mortgage, especially those who may have struggled previously. Here’s how a lower-inflation environment could help:

Interest rates may stabilise or fall

As inflation moves closer to the Bank of England’s long-term targets, pressure on interest rates tends to ease. If rates settle or gradually reduce, monthly mortgage costs could become more manageable for many households.

Lenders often become more confident

A more stable economic backdrop can lead to lenders widening their criteria or launching new products, including options tailored for people with credit issues.

Better affordability checks

Lower interest rates typically mean lower monthly payments. This can improve affordability calculations, helping more borrowers, including those who’ve faced challenges in the past, meet lender requirements.

What If You Have Adverse Credit?

Even now, plenty of lenders will consider applicants with historic credit problems, and a possible economic improvement could mean more choice ahead.

To discuss your options and plan with confidence, get in touch today.

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