Mortgage market update | April 2026

Mortgages have been a little busy over the last few weeks.

With everything going on in the Middle East, we’ve seen a sharp increase in interest rates, which has meant more late nights trying to get deals secured… and the odd bit of despair as lenders pull rates at the last minute.

Things seem to have calmed slightly, but the rates on offer today look very different to those available just 6 weeks ago.

Who knows what the next few weeks or months hold, but for now, it’s been pretty full on.

Here’s what’s been happening.

House Prices Pick Up… But There’s a Catch

Nationwide’s latest report showed that house price growth picked up in March, with the market holding up better than many expected.

You can read the full report here.

On the surface, that’s positive. And it is. But it’s important to understand what’s sitting behind it.

A lot of this data reflects a period where rates were lower and affordability was improving.

Buyers were pushing on, and confidence was starting to return.

Since then, things have shifted.

With rates increasing over the last few weeks, I’d expect the next set of data to look a little different. Not dramatically worse, but more reflective of the new environment we’re in.

What I’m seeing on the ground is buyers still active, but more cautious. There’s more negotiation happening and deals are taking slightly longer to come together.

Barclays Improve Affordability

As mortgages have become more expensive again, some lenders are trying to offset that by improving how much clients can borrow.

Barclays are the latest to make a move here.

For applications at or below 85% loan-to-value, they’ve reduced their stress rates, which means some clients may now be able to borrow more than before.

They’ve also increased income multiples for certain borrowers, particularly those in the £35,000 to £75,000 income range.

In simple terms, if you were previously right up against affordability limits, this could give you a bit more flexibility.

It’s a good example of how lenders are still keen to lend, even in a slightly tougher rate environment.

More Support for Second-Time Buyers

Leeds Building Society have made changes to support second-time buyers, improving affordability and borrowing potential.

As mortgages have become more expensive, this is a positive step. It gives buyers a bit more flexibility and helps keep things moving, particularly for those already on the ladder.

My Final Thought

The last few weeks have been a good reminder of how quickly things can change.

Rates were heading one way, and then suddenly they weren’t.

If you’re waiting for everything to feel clear before making a decision, you’ll probably end up waiting longer than you want to.

The clients who tend to do best are the ones who understand their numbers and make decisions based on their own situation, rather than trying to second guess the market.

If you’re unsure what this means for you, whether you’re buying, remortgaging or just planning ahead, feel free to reach out.

Risk warnings

Your home may be repossessed if you do not keep up repayments on your mortgage