Britain is in for a “booming” mortgage market in a major boon for buyers, analysts have said.
Mortgage rates could fall in the coming weeks as lenders compete more aggressively for customers.
Borrowers now have more choice than at any time in the past 18 years, according to the findings.
“Expectations are high for a booming market in 2026,” Rachel Springall, a finance expert at the firm, said.
“Mortgage rates are lower year-on-year, and the choice of deals is abundant.
“First-time buyers are not being left behind by this progress.”
‘First-time buyers are not being left behind by this progress,’ Rachel Springall of Moneyfacts said
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The surge in available products reflects lenders’ appetite to attract new customers in an increasingly competitive landscape.
The Moneyfacts analysis paints an optimistic picture for the year ahead, with the mortgage sector poised for significant growth.
First-time buyers are now benefiting from more relaxed requirements imposed by lenders.
Mortgage rates declined over the course of the previous year, providing some relief for borrowers.
The combination of falling rates and looser borrowing standards has created more favourable conditions for new entrants to the housing market.
These changes mark a shift in approach from lenders who had previously maintained stricter criteria.
Some mortgage brokers have suggested there is demand among potential buyers who were waiting for the Budget and Christmas to finish before making firm plans to move.
Aaron Strutt, from broker Trinity Financial, said as many as 1.8 million borrowers were coming to the end of their fixed rates and competition between the lenders to issue more mortgages was likely to be even stronger this year.
“We can expect to see some more criteria easing and hopefully even cheaper fixed rates,” he said.
But in the face of the positive outlook, wider global and economic uncertainty still has the potential to derail any further improvements.
The unpredictable international financial climate remains a concern for industry watchers.
Some borrowers also still face a financial hit when their current deal comes to an end.
Those coming off fixed-rate arrangements may find themselves paying considerably more than before.