As the festive season approaches, our thoughts naturally turn to the year ahead. If moving home is part of your 2026 goals—whether it’s upsizing, relocating, or buying/investing for the first time—now is the ideal time to start exploring your mortgage options.
By planning ahead, you’ll be in a stronger position when the right property comes along. And right now, the conditions are lining up to make buying a new home more achievable for you than it’s been in years.
More mortgages are being approved
The Bank of England confirmed a rise in mortgage approvals in September, the highest since March 2025, suggesting that lenders are more willing to lend, and more people are successfully securing mortgages. Gross lending totalled £24.9 billion in September, up from £23.0 billion in the previous month, with net mortgage approvals for house purchases having increased in September. This means more money is flowing into the housing market, signalling growing confidence among buyers and lenders alike.*
Interest rates are lower — and still falling
Interest rates across 2-year, 3-year, and 5-year fixed products are now lower than they’ve been in the past three years. We’ve seen consistent rate drops over the past few months, with more reductions happening just last week — and more expected this week. If, like most homeowners, you’re unsure about future rate movements, the gap between 2-year and 5-year fixed rates has narrowed significantly. A 5-year fixed rate could offer peace of mind and stability without a major cost difference to a 2-year fixed option.**
Deposit strategy
With interest rates less sensitive to your deposit size, you currently have more freedom in how you use your funds. Instead of stretching for a bigger deposit, you might choose to keep a savings buffer for peace of mind, invest in renovations to turn a “6 out of 10” property into your dream home, opt for a larger property with that extra bedroom or stretch for that one property that really stood out.
Lenders are becoming more flexible
We’re seeing innovation from lenders — more flexibility, more options, and larger mortgage offers. Combined with the ability to buy with a smaller deposit, this is a great time to reassess what’s possible if your plans include buying a home in the new year.
Why now is a smart time to plan
Mortgage rates have seen some movement recently, and while the market remains dynamic, there are signs of increased stability. If you're considering a purchase in the new year, understanding NOW what you could borrow means you can act quickly when the time is right. Rightmove have talked of the ‘Boxing Day boom’ for a few years now. In 2024, there was an uplift of 26% in the number of new properties coming to the market for sale on Boxing Day, with a 20% increase in the number of enquiries from potential home-buyers through Rightmove alone.*** That means competition can heat up fast.
If you're not sure what you can borrow, we can help you get mortgage-ready with an Agreement in Principle (AIP). An AIP is a document from a lender that gives an indication of how much they might be willing to lend, based on a snapshot of your financial situation. It gives you a clear idea of your borrowing power and shows sellers you're serious. It’s not a formal mortgage offer, but it’s a powerful tool—it shows estate agents and sellers that you're serious, and it helps you focus your property search on homes for sale that are within your budget.
Many buyers wait until January to start their property search—without having spoken to a mortgage adviser or checked their affordability. That delay can mean missing out on the best properties or facing unnecessary stress and disappointment. By doing your homework now, you’ll be ready to move when others are just getting started.
Ready to explore your mortgage options?
Whether you're just starting to think about buying or you're already browsing listings, we’re here to help. From understanding your affordability to securing the right mortgage when the time comes, our expert mortgage advisers can guide you every step of the way.
Let’s make 2026 the year you move forward—with confidence. Start your journey here.
* Bank of England
** UK Finance
*** Rightmove
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
