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đ Mortgage Market Positive News â Lower Rates & More Choice for Borrowers
Thereâs a real sense of positivity building in the UK mortgage market great news for homebuyers, remortgagers and those thinking about moving inâŻ2026. With lenders actively reducing rates and expanding product choice, thereâs more opportunity for competitively priced deals than weâve seen for some time đ.
đ 1. Major Lenders Cutting Mortgage Rates
Several household names on the high street are reducing mortgage pricing across a range of products, bringing some of the lowest headline rates seen in over three years. đ Deals are now available with fixed rates dipping into the mid 3âŻ% range, making borrowing more affordable for many.
This renewed price competition sometimes described as a mortgage âprice warâ means more choice for borrowers and the chance to secure a lower monthly payment.
đ 2. Market StartsâŻ2026 with Lower Rates & More Products
Mortgage pricing and product availability have improved steadily through lateâŻ2025 and into JanuaryâŻ2026, according to industry data. There are more deals on the market now than at many points in recent years, giving buyers greater flexibility and betterâpriced options to choose from.
This increase in product choice – including fixedârate deals at appealing levels –Â is particularly encouraging for firstâtime buyers and those looking to remortgage.
đ 3. Continued Downward Momentum on Rates
Recent lender moves have seen twoâyear fixed deals drop as low as aroundâŻ3.5âŻ%, a welcome shift after a prolonged period of higher pricing.
Analysts and mortgage brokers alike are feeling positive about how the market is shaping up in the months ahead, with competition among lenders helping keep rates attractive for borrowers.
đĄ What This Means for You
âď¸ Lower costs: Reduced mortgage rates can lead to cheaper monthly payments and improved affordability.
âď¸ More choice: A wider range of mortgage products means borrowers can find deals that match their circumstances and goals.
âď¸ Competitive market: Strong competition between lenders is encouraging better pricing â and thatâs a big win for buyers.
đ Whether youâre a firstâtime buyer, moving home, or remortgaging, now could be a great time to explore your options. If youâd like help comparing specific deals â or want insights on how these trends affect firstâtime buyers in particular, just get in touch with your local Hannells branch and speak to one of our Mortgage experts!
⨠If you would like tailored advice about buying, selling or investing locally, get in touch with your nearest Hannells branch or arrange a free, no-obligation property valuation today.
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