Mortgage market update | June 2026

The last month has felt a little quieter.

Following the sharp increase in rates after the start of the conflict in Iran, things have settled down slightly.

Rates haven't really moved a huge amount, although we've seen a few lenders making small reductions and NatWest announced an interesting affordability change for higher earners.

At the same time, house prices dipped slightly in May and some sellers are finding the market a little tougher than they expected.

Here's what's been happening this month.

Rates Settle After a Volatile Few Months

Following the sharp increase in rates after the start of the conflict in Iran, things have settled down slightly.

We've seen a few lenders reduce rates over the last couple of weeks, but we're talking about fairly small changes rather than anything significant.

The good news is that we're no longer seeing the rapid repricing and product withdrawals that became common earlier in the year.

The conversations I'm having haven't changed much. People still want to know whether they should fix for 2 years, 5 years, or consider a tracker. The honest answer remains the same: it depends on the individual and their plans.

There's still plenty of uncertainty around where rates go next, but for now things feel a little calmer than they did a few months ago.

NatWest Increase Borrowing Power

NatWest have recently increased the maximum income multiple available to some higher earners, now allowing borrowing of up to 6.5 times income in certain circumstances.

The change applies to joint applicants earning over £150,000 and borrowing up to 75% of the property's value.

While this won't apply to everyone, it's another example of lenders becoming more competitive and looking for ways to help buyers access larger loans.

For the right client, it could mean the difference between compromising on a property and buying the home they actually want.

As always, just because a lender is willing to lend more doesn't mean you should borrow more. Affordability remains key.

However, for higher earners who have found themselves falling just short of their target property, this could be a useful addition to the options available.

What I’m seeing

Nationwide's latest House Price Index showed prices fell by 0.6% in May, the first monthly decline we've seen this year. Annual growth also slowed from 3.0% to 1.7%.

You can read the full report here.

That doesn't really surprise me.

From my side, buyers are still looking, but there's a feeling that they may have a bit more room to negotiate than they did a little while ago.

At the same time, some sellers are finding their properties are staying on the market longer than expected.

I'm finding this particularly noticeable in the flat market. Whether that's the lingering impact of cladding concerns, increasing service charges, ground rent costs, rental reforms, or simply more choice for buyers, it's definitely a tougher market than it was a few years ago.

If I was buying today, I'd be looking closely at how long a property had been on the market, what similar properties had recently sold for, and how motivated the seller might be.

That doesn't mean throwing in silly offers for the sake of it. It means making considered offers backed by evidence rather than emotion.

For buyers who know their numbers and are prepared to act, there are opportunities out there.

My Final Thought

Buying a home is emotional, but the strongest buyers I see are the ones who can take a step back and look at the numbers.

They know what they can afford, they know what they're looking for, and when the right property comes along they're prepared to act.

There may be more opportunities in the market today than many buyers realise.

If you're unsure what any of this means for you, whether you're buying, moving or re-mortgaging, feel free to get in touch.

Risk warnings

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