THE number of mortgage deals available, at 7,158 products, is the highest it’s been since 2007, a level one broker has described as a “huge milestone for the market”.
Product choice overall rose month-on-month, to 7,158 options, where year-on-year, there are now 650 more deals available to borrowers, new Moneyfacts research shows.
The latest count is the highest since October 2007 – while deals at 90% and 95% LTV brackets sit at near 18-year highs.
The Moneyfacts Average Mortgage Rate fell to 4.87% month-on-month from 4.91%. Year-on-year the rate is down by 0.53%, from 5.40% in January 2025.
This comes after brokers predict mortgage rates will drop below 3% in 2026.
Rachel Springall, Finance Expert at Moneyfacts, 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. Expectations are high for a booming market in 2026.
“Mortgage rates are lower year-on-year, and the choice of deals is abundant. The relaxation in stress testing and expectations for further rate cuts will help ease the affordability constraints on borrowers.
“First-time buyers are not being left behind by this progress, as deals aimed at those with a low deposit now stand at their highest levels for almost 18 years, yet more progress to support underserved buyers would be welcomed amid a lack of affordable housing.”
Plethora of products
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said now is a good time to think about buying.
He added: “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.
“However, the vast choice also emphasises the need for professional advice in selecting the most suitable product for your circumstances as big savings can be secured. Improved choice is always a good thing, but people need to choose well.”
Adam Stiles, Managing Director at London-based Helix Financial Partners, said 2026 is set to be a “scintillating year”.
He continued: “Innovation and confidence in the mortgage market has played a huge role in this excellent news. We’re regularly seeing new lender entrants, as well as innovation from the incumbents.
“There’s still a long way to go to serve certain sectors of the market but being back to levels not seen since 2007 is really good to see. 2026 is shaping up to be a scintillating year.”
Scintillating year
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said it’s a significant moment.
She added: “Choice for borrowers being at its highest since 2007 is a huge milestone for the mortgage market. The availability of deals at higher loan-to-values is especially important to get the market moving. If rates continue to nudge down, property transactions will go in the opposite direction.”
Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, has high hopes for 2026.
He continued: “2025 was the year of innovation in mortgages and buyers are now spoilt for choice. We are confident that 2026 will be a far stronger year for the property market than 2025, especially if rates continue to edge down.”
Defining year
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said it’s a “defining year in the property world”.
He added: “There is no reason for mortgage borrowers to be working directly with any individual lender when a mortgage broker has access to over 7,000 mortgage products from a very extensive and competitive market.
“You will inevitably save money by seeking advice, especially in a market where rates have improved to their best prices for 3 years, and over 1.8m borrowers are seeking a new deal.
“Many of those will have locked in on rates over 5%, worried about escalating mortgage costs at that time, and hoping for the improvement we can now deliver. The next choice of deal is a really interesting debate, balancing the cheaper two year deals with the security of five year options, especially where borrowers have already experienced the highs as well as the lows. This is definitely a defining year in the property world.”
Fragile position
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said he worries that the housing market is stalling.
He continued: “Do people have the confidence to move and make large financial commitments at the moment? It has been clear for some time that lenders are willing to lend, not just by pricing competitively but also by loosening criteria.
“With the economy in a fragile position and little light at the end of the tunnel, many people are still sitting on their hands. Unless the housing market gets moving soon, 2026 could be very similar to 2025.”
Photo by Jakub Żerdzicki on Unsplash.
