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International Business Times UK
International Business Times UK
National
Seneca Cabrera

Booming Mortgage Market Forecast as Lenders Cut Rates and Ease Rules — What It Means for UK Buyers

The changes could improve access to mortgages for some buyers and remortgagers, though affordability pressures remain. (Credit: Lina Kivaka : Pexels)

Britain's mortgage market is showing early signs of renewed activity at the start of 2026, as major lenders cut borrowing costs and relax affordability criteria following a shift in monetary policy.

The changes come after the Bank of England reduced its base rate to 3.75 per cent late last year, prompting banks and building societies to compete more aggressively for new lending after a prolonged slowdown in housing market activity.

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