As we close out 2025, many homeowners and first-time buyers are asking the same thing: What does 2026 hold for mortgage rates?
While no one has a crystal ball, here are the three key factors that will shape the market this coming year.
1. The “New Normal” for Rates
We have moved away from the volatile spikes of the past few years. The consensus among economists is that we are entering a period of stability. We are unlikely to return to the near-zero rates of 2021, but we are also hoping to avoid the aggressive hikes of 2023. 2026 is expected to be a year of “settling.”
2. House Prices in the North West
While London and the South East often grab the headlines, the North West property market has remained resilient. In areas like Cheshire, demand for family homes continues to outstrip supply, which usually protects prices from falling significantly, even if the wider economy slows down.
3. Lender Competition
When the housing market is steady, lenders have to fight harder for your business. In 2026, we expect to see banks competing not just on rate, but on criteria—making it slightly easier for self-employed people or those with smaller deposits to get approved.
Summary:
2026 looks set to be a year of consistency rather than chaos. If you have been waiting for the “perfect” time to move, a stable market is often the safest time to act.
While no one has a crystal ball, here are the three key factors that will shape the market this coming year.
1. The “New Normal” for Rates
We have moved away from the volatile spikes of the past few years. The consensus among economists is that we are entering a period of stability. We are unlikely to return to the near-zero rates of 2021, but we are also hoping to avoid the aggressive hikes of 2023. 2026 is expected to be a year of “settling.”
2. House Prices in the North West
While London and the South East often grab the headlines, the North West property market has remained resilient. In areas like Cheshire, demand for family homes continues to outstrip supply, which usually protects prices from falling significantly, even if the wider economy slows down.
3. Lender Competition
When the housing market is steady, lenders have to fight harder for your business. In 2026, we expect to see banks competing not just on rate, but on criteria—making it slightly easier for self-employed people or those with smaller deposits to get approved.
Summary:
2026 looks set to be a year of consistency rather than chaos. If you have been waiting for the “perfect” time to move, a stable market is often the safest time to act.
