Mortgage Market Update May 2026

27 May, 2026

The mortgage market is beginning to show renewed stability following recent global events that caused disruption in the energy markets. Mortgage rates appeared to peak in early April and have since started to ease, with all of the major high street lenders announcing rate reductions over the past couple of weeks.

While rates remain slightly higher than they were before the recent Middle East crisis, market confidence is improving and many analysts expect fixed mortgage rates to continue falling over the summer months. Inflation and wider economic data are also showing encouraging signs, which should help avoid any immediate increases to the Bank of England base rate.

Competition between mortgage lenders is currently very strong, with improving economic sentiment encouraging lenders to become more competitive on pricing and criteria. We are also continuing to see lenders relax affordability and deposit requirements, helping more buyers access the market.

A good example of this is Halifax recently launching a new First Time Buyer mortgage requiring a minimum deposit of just £5,000 — less than 2% on a £300,000 property purchase.

All of this is expected to support a busy summer housing market, as lower mortgage rates and more flexible lending criteria help increasing numbers of buyers take their first step onto the property ladder or move home.

As always, please get in touch with one of our mortgage advice partners, based in our sales offices for up to date advice on interest rates and mortgage criteria.