As we come to the end of 2025, the UK mortgage market is in a far healthier position than many expected this time last year.

Throughout 2025, we’ve seen interest rates gradually reduce, driven by more stable swap rates and improving economic confidence. This has allowed lenders to price fixed-rate mortgages more competitively, bringing welcome certainty back to borrowers.

Affordability has also improved. Several lenders are now able to offer higher income multiples — up to six or even six-and-a-half times income in some cases, particularly for first-time buyers with strong profiles. Alongside this, 95% loan-to-value mortgages are now more widely available, including on many new-build houses, making home ownership more accessible for those with smaller deposits.

Looking ahead to 2026, the outlook remains cautiously optimistic, with continued lender competition and improving product choice expected.

From all of us at Locations Mortgage Solutions, we would like to wish our clients a very Merry Christmas and a happy, healthy, and prosperous New Year. If you’re planning a purchase or remortgage in 2026, now is a great time to review your options and get in touch.