When you are preparing to sell, it’s natural to focus on what buyers can afford. Mortgage rates attract plenty of attention, but the headline rate is only one part of the picture.
Behind the headlines, lenders continue to support buyers through a broad range of mortgage products, different deposit options and lending criteria designed around a variety of circumstances. That matters to sellers because the more routes buyers have into the market, the greater the prospect of finding someone able to proceed with a property purchase.
Mortgage lending remains active
The latest quarterly figures from the Bank of England show that UK gross mortgage advances reached £77.4 billion in the second quarter of 2026. This was 11.1% higher than the previous quarter and 31.7% higher than a year earlier. New mortgage commitments were also 1.3% higher year on year. While monthly activity naturally fluctuates, these figures demonstrate that lenders continue to lend and buyers continue to secure finance to buy property.
More low-deposit lending is taking place
Deposit size has traditionally been one of the biggest obstacles for aspiring homeowners, particularly first-time buyers. However, high loan-to-value lending now represents a growing share of the market, this means less deposit is needed. During the second quarter of this year, 8.4% of gross mortgage advances had a loan-to-value ratio above 90%. That was the highest proportion recorded since the second quarter of 2008.*
This doesn’t mean every buyer will qualify for a mortgage with a small deposit. Lending remains subject to affordability assessments, individual circumstances and lender criteria. However, it shows that buyers without very large deposits continue to have a presence in the mortgage market. For sellers, that potentially widens the pool beyond buyers arriving with substantial savings or significant family support.
First-time buyers and movers continue to transact
Across England, 79,730 new first-time buyer loans were completed during the second quarter, worth £18.65 billion. The number of loans was 23.3% higher than a year earlier, while their total value was 35.2% higher. There were also 62,840 new loans to homemovers, worth £18.94 billion. The number was 33.1% higher year on year and the total value had increased by 41.4%.**
Why is this relevant if you’re selling?
While existing homeowners are usually looking to sell to make their next move, first-time buyers often provide the starting point for a chain. Activity among both these groups helps support transactions at different stages of the market.
Buyers still need to plan carefully and be ‘offer ready’
Buyers still need to understand their budget, prepare their finances and seek advice early. A decision in principle can help buyers establish a realistic budget and demonstrate to sellers that they’re in a position to proceed. A good estate agent will ensure any potential buyer visiting your home has their finances in order before they step foot in your property so they can be ‘offer ready’.
What does this mean if you’re selling?
The mortgage market is not defined by one rate or one headline. Lenders are still lending. High loan-to-value lending has grown. Both first-time buyers and homemovers (link to deals) remain active. For sellers, the message is encouraging: serious buyers are still securing finance and moving ahead. Presenting your home well, pricing it appropriately for the local market and working with an experienced agent remain essential. When the right buyer appears, early communication between them, their mortgage broker and the estate agent is also essential.
If you're selling in order to buy your next home, the same advice applies, you need to understand your onward financials and what offer price you can accept in order to make your next move. Speaking to a mortgage broker early can help you understand your budget, borrowing potential and mortgage options before you start viewing properties. When the right home comes along, you'll be in a stronger position to act quickly and move with confidence.
What happens if you find your dream home and haven’t yet sold?
If you've found your next home but your current property hasn't yet sold, bridging finance could help you move without missing the opportunity. A bridging loan provides short-term funding that can enable you to purchase your new property before receiving the proceeds from your sale, helping to reduce the pressure of tight timescales and property chains.
While bridging can be an effective solution in the right circumstances, it is a specialist form of lending with its own costs and considerations. Seeking expert advice early can help you understand whether it's an appropriate option and ensure you have a clear exit strategy in place.***
Looking for more guidance?
If you're preparing to sell your current home and buy your next one, you may also find these guides useful:
What different types of mortgages are there?
Mortgage jargon explained: a guide for sellers
What to do if your mortgage offer is about to expire
Thinking about your next move?
If you're planning to sell and buy another property, speaking to a mortgage broker early can help you understand your borrowing potential, budget and available options before you begin viewing homes. Whether you're moving up the ladder, downsizing or relocating, getting mortgage advice early can help you move with confidence when the right property comes onto the market.
Speak to an Alexander Hall mortgage adviser to discuss funding your onward purchase by calling 08000 38 37 36.
* Bank of England
** UK Finance
*** Bridging loans are typically more expensive than standard residential mortgages and may not be suitable for all customers. Interest rates, fees and repayment requirements should be carefully considered before proceeding.
