First-time buyers and individuals with minimal equity looking to refinance are set to encounter a substantially broader selection of mortgage products throughout 2026, according to fresh market analysis.
Record Highs in High LTV Deals
Recent research conducted by the financial data firm Moneyfacts indicates a notable monthly increase in higher loan-to-value (LTV) mortgage offerings during January. Specifically, the availability of 90% LTV deals has reached an unprecedented peak, while 95% LTV options have surged to their highest level since March 2008.
Overall Product Availability Climbs
The total number of mortgage products on the market experienced a month-on-month rise, reaching 7,537 distinct options. This figure represents an increase of over 1,000 deals compared to the same period last year, signalling a more competitive and diverse lending landscape.
Fixed Mortgage Rates Experience a Slight Uptick
In a shift from the recent trend, average fixed mortgage rates saw a modest increase for the first time since October 2025. The average two-year fixed rate rose by 0.02% to 4.85%, and the average five-year fixed rate increased by 0.03% to 4.94%.
The broader Moneyfacts Average Mortgage Rate also edged upwards, moving from 4.87% to 4.90% on a monthly basis. However, it remains 0.55% lower than the rate recorded in February 2025, which stood at 5.45%.
Expert Commentary on Market Conditions
Rachel Springall, a Finance Expert at Moneyfacts, commented on the developments, stating: “This year is setting itself up to be a fruitful one for first-time buyers, and really, they need all the help they can get amid the lack of affordable housing.”
She added: “Despite the volatility in mortgage rates over recent weeks, and a typical seasonal slowdown in activity that resulted in a rise to the average shelf-life of a deal to 33 days, the latest boost to product choice and sentiment towards relaxing stress tests will be encouraging news to borrowers.”
Springall further detailed that mortgages at the 90% LTV tier now constitute 13% of the residential mortgage market, with 95% LTV deals making up a smaller segment of just 7%. The expansion in both sectors has culminated in a record-high number of deals accessible to borrowers who can provide a 10% deposit or have equivalent equity.
Regional Perspectives and Broker Insights
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, shared his observations with Newspage: “2025 was a year of innovation for lenders and first-time buyers could benefit in 2026 as a result. In fact, that's already happening.”
He noted particularly strong activity from first-time buyers and home movers in more affordable regions, such as areas around Swansea, Cardiff, and the Valleys, where value for money continues to be a significant attraction.
“There are now more loans available at higher loan-to-values and, if people lock in for longer, they can often borrow more,” Sturgess explained. “2026 is shaping up to be the year more aspiring first-time buyers finally get onto the ladder and out of the rental market.”
