Modest house price growth may offset easing mortgage costs for home buyers this year
Analysis of new data* from Moneyfactscompare.co.uk illustrates how easing mortgage rates may allow for a modest growth in house prices in 2026 without improving or worsening current affordability pressures on first-time buyers and homemovers.
*Consumers comparing mortgage deals on moneyfactscompare.co.uk in 2025 and Moneyfacts Average Mortgage Rates.
First-time buyers
Typical first-time buyers borrowed around £236,000 in 2025
Average property value of around £310,000
Average loan-to-value (LTV) of 78% // Avg deposit of 22%
Homemovers
Typical homemover borrowed around £251,000 in 2025
Average property value of around £466,000
Average LTV of 58% // 42% equity
Remortgage borrowers
Typical remortgage customer borrowed around £215,000
Typical property value of around £460,000
Average LTV of 50% // 50% equity
Average mortgage rates
Markets currently predict the Bank of England will lower the Base Rate from 3.75% to 3.25%-3.5% this year.
