Following Covid, the cost-of-living crisis and rapid rate rises, the past year felt refreshingly calm. Not booming, not collapsing, just more predictable and in this market, predictability has real value.
Rates have found a new normal
Base Rate has already fallen from its 2023 peak of 5.25% to 3.75%, with markets expecting further gradual cuts. While ultra-low rates are firmly in the past, fixed rates edging closer to 4% are easing pressure for many borrowers and bringing confidence back into decision-making.
Growth remains slow, but stable
House prices are forecast to rise modestly in 2026, with most commentators predicting low single-digit growth. Transaction volumes tell a similar story: activity is ticking over rather than accelerating, driven largely by life events rather than speculative moves. It’s a balanced market – cautious, but functioning.
Remortgaging continues to dominate
Refinancing surged through 2025 and will remain central next year, with around 1.8 million fixed rates ending in 2026. Many borrowers are prioritising speed, certainty and clarity over switching for marginal savings. Some will face higher repayments, while others rolling off recent high-rate deals may see costs fall – but all will need careful guidance. At Aldermore, we’ve focused on making refinancing easier to navigate, with clear criteria, pragmatic underwriting and a strong emphasis on broker support where affordability is stretched.
Buy-to-let is increasingly specialist
Landlords continue to face tax, regulatory and EPC pressures alongside higher rates, yet tenant demand remains strong. The result is a more complex, professionalised buy-to-let (BTL) market. We’ve responded by enhancing our specialist propositions – including multi-property mortgages that allow up to 30 properties under one account, portfolio-level affordability assessments, and improved houses in multiple occupation (HMO) criteria with lower interest coverage ratios (ICRs) and higher loan limits. It’s about giving brokers practical flexibility in a constrained environment.
Access and affordability remain front of mind
First-time buyers and those with non-standard income are still under strain, and regulatory focus is shifting toward better access in 2026. Aldermore has already acted, modernising affordability models, increasing maximum loan sizes and broadening criteria for self-employed borrowers, contractors and those with minor historical credit issues – backed by experienced, human underwriting.
What this means for brokers
2026 may not deliver big headlines, but it will be busy, nuanced and advice led. Our commitment is to keep evolving our products, criteria and service so you can support more clients, more confidently, in a market where steady progress matters most.
