Mortgage market update | September 2026

August was a nice change of pace. A few days out with the family, slightly less time at the desk and the August mortgage update never quite made it out!

September seems to be disappearing just as quickly. One of my daughters has started school, so we're getting used to a new routine and I'm getting to grips with the school run and the usual juggle of work and family life.

There's also been plenty happening with mortgages this month, including another Bank of England decision, so here's what I've been looking at.

Rates stay at 3.75%

Inflation increased to 3.1% in August and the Bank of England has now held the base rate at 3.75%.

Interestingly, three members voted to increase it to 4%.

What happens next? The simple answer is I don't know and if someone tells you they do, I'd ask them for this week's lottery numbers as well!

At the risk of sounding like a broken record, when it comes to deciding on your mortgage, look at your own circumstances at the time. Understand what's important to you, whether that's the security of knowing what you'll pay each month or having a bit more flexibility.

Don't make the decision based on trying to guess where rates are going next, because the reality is no one really knows.

More Options for Smaller Deposits

There have been some positive changes for first-time buyers recently.

Metro Bank have launched a mortgage that could allow someone to buy with no deposit, using the income of an immediate family member to help with affordability.

Leeds Building Society have also launched a mortgage up to 98% LTV, with a minimum deposit of 2% or £5,000.

I think both are great options to have.

For some people, the deposit is the biggest thing stopping them from buying, so it's good to see lenders looking at different ways to help.

It's a Buyer's Market

I'm always reminding clients that it's a buyer's market now and they should be looking to make the most of it.

One recent property was originally listed for £500,000, reduced to £475,000 and my clients eventually agreed £450,000.

It can feel difficult sticking to a number when you've found somewhere you really want, but it can be worth it.

That doesn't mean offering 10% below every asking price. Look at how long it's been for sale, previous reductions and what similar properties are actually selling for.

I'm also seeing clients struggle to sell, particularly flats.

If that's you, I'd start with the basics. What's happening in your local market? How did you get to your asking price? What evidence supports it? And are you actually getting people through the door?

Santander pilot

We've been invited to take part in a Santander pilot giving us direct access to their large-loan underwriting team for eligible mortgages between £750,000 and £1 million.

Hopefully that means quicker answers, but it also gives us the opportunity to run certain cases past the team and get a clearer picture of what can be done.

A small change, but a useful one.

If you're thinking about buying, moving or re-mortgaging and want to have a look at the numbers, please get in touch.

Risk warnings

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