Lower Mortgage Rates Set To Stay – A Welcome Boost For Buyers And Sellers

Low mortgage rates expected to boost market through 2026.

The recent drop in UK mortgage rates below 4% is not only grabbing headlines but also setting the stage for a more confident and active property market. Encouragingly, this dip isn’t expected to be short-lived. Financial analysts and major institutions forecast that these competitive rates will continue throughout 2025 and potentially into 2026, offering a golden window of opportunity for both buyers and sellers.

Driven by easing inflation and the anticipation of Bank of England base rate cuts, lenders are adjusting their offers to remain competitive. With the base rate predicted to fall gradually over the coming months – potentially hitting 3.75% by the end of 2025 – mortgage deals are expected to stay attractive well into next year. This spells good news for homebuyers, particularly first-time purchasers who may have previously been priced out of the market by higher borrowing costs.

But it’s not just buyers who stand to benefit. Sellers can also take heart. As borrowing becomes more affordable, the pool of potential buyers widens. This increased demand can help homes sell more quickly and closer to asking prices, revitalising parts of the market that have seen sluggish activity in recent years. For those considering upsizing, downsizing, or relocating, this environment offers the perfect conditions to make a move with greater confidence.

The stability offered by sustained lower rates is exactly what the UK property market has been waiting for. It brings predictability to what has often felt like an unpredictable landscape, encouraging fresh momentum and restoring a sense of optimism. As we move through 2025 and into 2026, these favourable conditions could help usher in a more balanced and buoyant market for everyone involved.