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Boost for first-time buyers with rise in choice for borrowers with small deposits

ended 10. February 2026

First-time buyers and those with little equity to refinance will find greater mortgage choice in 2026, Moneyfacts research says.

During January, there was an uplift in higher loan to value (LTV) deals, with 90% LTV options at a record-high, plus a boost to 95% LTV deals, which are at their highest count since March 2008.

Product choice overall rose month-on-month, to 7,537 options. Year-on-year, there are now over 1,000 more deals available. 

Fixed mortgage rates rose for the first time since October 2025. The average two- and five-year fixed mortgage rates rose by 0.02% and 0.03% respectively month-on-month, to stand at 4.85% and 4.94% respectively.

The Moneyfacts Average Mortgage Rate rose to 4.90% month-on-month from 4.87%. Year-on-year the rate is down by 0.55%, from 5.45% in February 2025.

Rachel Springall, Finance Expert at Moneyfacts, said: “This year is setting itself up to be a fruitful one for first-time buyers, and really, they need all the help they can get amid the lack of affordable housing. 

“Despite the volatility in mortgage rates over recent weeks, and a typical seasonal slowdown in activity that resulted in a rise to the average shelf-life of a deal to 33 days, the latest boost to product choice and sentiment towards relaxing stress tests will be encouraging news to borrowers.”

  • What is your reaction to the research?
  • Is the mortgage market moving in the right direction for first-time buyers?
  • What are your predictions for 2026?

Responses asap please.

3 responses from the Newspage community

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Shaun SturgessVerified
Director at Sturgess Mortgage Solutions
2025 was a year of innovation for lenders and first-time buyers could benefit in 2026 as a result. In fact, that's already happening. We are seeing really strong activity from first-time buyers and home movers, particularly in affordable areas around Swansea, Cardiff and in the Valleys, where value for money remains a major draw. There are now more loans available at higher loan-to-values and, if people lock in for longer, they can often borrow more. 2026 is shaping up to be the year more aspiring first-time buyers finally get onto the ladder and out of the rental market.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
Mortgage lenders are relaxing affordability and deposit requirements, making buying that first home or upsizing more achievable. The abundance of choice makes obtaining professional advice to find the most suitable and cost effective mortgage all the more crucial. There is however slight concern that lending larger amounts at higher loan to values could increase defaults and chances of negative equity, lenders need to be careful of not creating another 2008 market crash.
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Omer MehmetVerified
Managing Director at Trinity Finance
The mortgage market is definitely moving in the right direction for first-time buyers. Lenders have been looking at all kinds of ways to help boost affordability and the result is more choice for those seeking to buy their first home. Better still, we're expecting mortgage rates to start to edge down again as the Bank of England believes inflation will soon be under control and, if it is, said it will cut rates. Overall, things are looking positive right now.