Good News for Buyers and Sellers

Good News for Buyers and Sellers: Falling Mortgage Rates Give the Market a Boost

It’s great to have some positive news to share about the housing market. Let’s be honest it’s been in short supply these recent months.

Despite fears in the run up to the Budget in the end it proved to be something of an anti-climax and as a result activity noticeably began to pick up with a marked increase in viewings and now with major lenders cutting interest on fixed-rate mortgages there is a growing optimism that this renewed positivity will carry into early 2026.

Over the past few months, many UK lenders have started lowering their fixed-rate mortgage deals — in some cases significantly — creating renewed momentum in the housing market.

Here’s what that means for homebuyers, sellers and anyone thinking of moving.

What’s happening with mortgage rates?

• Several major lenders have cut the interest on fixed-rate mortgages, including two-year and five-year products.
• As of recent data, average five-year fixed rates have dropped, and two-year fixed rates have dipped below 4 % for the first time since mid-2023
• Lenders are actively competing for business — a trend that’s particularly good for buyer affordability and for homeowners looking to remortgage.

What this means for buyers and sellers

For buyers

• Lower rates reduce monthly mortgage payments, so many more potential buyers — including first-time buyers — find themselves able to afford properties they had previously ruled out.
• Some buyers now find their borrowing power increased, allowing them to consider a wider range of homes or move up the property ladder.

For sellers

• Increased demand from buyers often leads to a faster turnover of properties. Many sellers who had delayed listing are now coming back to the market.
• Where there’s strong demand and limited supply, sellers may see more interest and potentially better offers — especially if their properties are well priced and presented.

For the wider market

• With more buyers and sellers active, sales volumes are rising again, helping counter the slowdown seen during periods of high interest rates.
• However, because many properties are coming back to market simultaneously, supply is rising too — which could help prevent runaway price inflation, keeping the market relatively stable.

What to expect in the near future

Industry forecasts suggest that if mortgage rates remain stable or fall further, there could be modest growth in house prices over the coming year — but nothing dramatic.

For many buyers and homeowners, especially those on fixed-rate or tracker mortgages, this could be a good window to act — whether buying, selling, or remortgaging.

If you wish to seek advice from our recommended in-house mortgage advisor Phil Terry then please call our office for a confidential call or a home visit.