Homebuyers now have access to more mortgage options than at any point in almost two decades, according to new industry data.
Mortgage product availability has reached its highest level since October 2007, giving borrowers significantly more choice.
There are currently 7,158 mortgage deals available across the market, according to research from Moneyfacts – an increase of 650 products compared with the same period last year.
The data suggests lenders have become increasingly competitive following a period of market uncertainty.
Average mortgage rates have also continued to edge down, now standing at 4.87 per cent, slightly lower than 4.91 per cent last month.
It’s notably lower than the 5.40 per cent recorded back in January 2025.
Rachel Springall, finance expert at Moneyfacts, told Newspage that the figures reflected a more positive outlook across the sector.
She said: “Borrowers and lenders will be in a state of optimism, off the back of a positive 12 months for the mortgage market in 2025.”
Homebuyers have access to more mortgage options than at any point in almost two decades
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She said the growth in product numbers was helping to rebuild confidence among both buyers and lenders.
First-time buyers are among those seeing the biggest improvement in choice, with mortgage products aimed at borrowers with smaller deposits have reached levels not seen for almost 18 years.
This includes deals available at 90 per cent and 95 per cent loan-to-value.
Industry figures say this is a key development for those trying to get on the property ladder.
Stephen Perkins, managing director at Yellow Brick Mortgages, said: “The plethora of products available to borrowers, particularly for those with low deposits, being the largest since 2007, shows that now is an excellent time to buy or move.”
First-time buyers are among those seeing the biggest improvement in choice
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He said the volume of choice made it more important for buyers to seek professional advice.
Mr Perkins said navigating the market carefully could help borrowers secure more competitive deals.
Ms Springall said that while the figures marked progress, challenges remained.
She said additional support for underserved buyers would still be needed due to ongoing pressures in the housing market, with a shortage of affordable housing continuing to limit options for prospective buyers.
Other mortgage brokers also highlighted the importance of rising loan-to-value availability.
Emma Jones, managing director at Whenthebanksaysno.co.uk, said: “Choice for borrowers being at its highest since 2007 is a huge milestone for the mortgage market.”
She pointed to the increase in higher loan-to-value deals as particularly important for stimulating activity.
Adam Stiles, managing director at Helix Financial Partners, described 2026 as a “scintillating year” for the mortgage sector.
He pointed to innovation and renewed confidence as major factors behind the surge in products, with new lenders entering the market and established firms launching new offerings were helping to drive growth.
Not all industry voices, however, are fully convinced the market will accelerate quickly.
Borrower confidence may damage an optimistic market outlook
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Riz Malik, director at R3 Wealth, said borrower confidence remained a key concern.
“It has been clear for some time that lenders are willing to lend, not just by pricing competitively but also by loosening criteria.”
He said economic uncertainty may still be causing hesitation among buyers, and warned that without increased transaction volumes, progress could stall.
Justin Moy, managing director at EHF Mortgages, highlighted refinancing pressures facing existing borrowers – with more than 1.8 million borrowers are currently searching for new mortgage deals.
Many of those borrowers previously fixed at rates above five per cent during periods of market volatility.
The growing number of products could help ease pressure for households coming to the end of higher-rate deals.