29/06/2026
Mortgage conditions have improved significantly from the peak of the interest rate cycle, with lenders reducing mortgage rates throughout April and May 2026. However, the outlook remains uncertain. Earlier in the year, some lenders had priced in the possibility of further Bank of England base rate increases, while ongoing geopolitical uncertainty continues to influence market expectations.
For now, the housing market is likely to remain highly price-sensitive. Well-priced properties are continuing to attract interest and sell, while homes marketed above realistic values are typically taking longer to secure buyers.
For prospective buyers, obtaining a mortgage Agreement in Principle before beginning a property search is more important than it has been in lower-rate environments. With a substantial difference between the most competitive fixed-rate products and standard variable rates, choosing the right mortgage can have a significant impact on monthly repayments and overall affordability.