Affordability is improving for many borrowers with lenders

As lenders continuing to make rates cuts as we head into the new year, affordability is improving for many borrowers says Enzo Mora CEO and founder of The Mortgage Brain.

I love to start the new year on a positive note. Following on from a busy close to 2025, latest data from the Moneyfacts UK Mortgage Trends Treasury Report forecasts gross lending is to rise by four per cent in 2026 to £300 billion, while lending for house purchase will grow by two per cent to £180 billion. Around 1.8 million fixed mortgages are due to end this year with our customers set to make substantial savings as fixed rates were higher two years ago. Now is the time for any borrower who hasn’t refixed and is on a lender Standard Variable Rate (SVR) to make an urgent switch to a new fixed rate. SVRs are considerably higher, over 8% in some cases, and thousands of pounds of savings can be made. We always let our customers know when their fixed rate deal is ending so they don’t end up with a nasty shock when their mortgage payments increase. And it’s never too late to switch, our advisers will be able to take borrowers swiftly through the process.

How smart are you?

We’re increasingly using smart technology in our business to offer an even better service to our customers and it seems many of us are also embracing smart tech in the home. New research commissioned by one of the UK’s leading house builders, The Hill Group, shows that since the Covid pandemic, over 50% of the respondents now use their homes more frequently for exercise or wellbeing. Around 72% said that smart tech had a positive influence on their lives including saving energy, improving home security, helping to clean the home, giving better sleep quality and managing exercise routines. Hill has introduced a cutting-edge AI-powered Magic Fitness Mirror in show homes at its flagship developments in London, Cambridge and Oxford. It looks like a traditional mirror, but once activated, it transforms into an interactive personal trainer, offering customised workout programmes and real-time feedback. I’m guessing we’d all like demo as we plan our new year fitness regimes!

Where are house prices heading?

If you’re a regular watcher of house prices like I am, you would have seen a number of price reductions across the portals before Christmas and into January so this may mean there are still a few bargains to be had if sellers are keen to move and you’ve got your mortgage in principle allowing you to make a serious offer. Sales are being boosted by better mortgage rates and rising wages and according to Zoopla, house price growth has cooled to 1.1% down from the 1.9% growth seen in 2024. The itch to move remains and first-time buyers, dominated activity accounting for 58% of all buyers in 2025, says Reallymoving, just 1% lower than in 2024. They paid an average of £275,594 with 11% opting for a new build home and are set to be leading the way this year. If that’s you or if you’re looking to remortgage, buy a brand new home or climb up the ladder, we’re here to help with your 2026 move.