February 2026: rates improving and first time buyer trends

February is often when momentum really starts to build in the property market, as buyers return after Christmas and early movers begin securing homes for the year ahead.

Mortgage rates continue to improve

Mortgage pricing has continued to edge down into February, with lenders quietly trimming rates and becoming more competitive across both purchase and remortgage deals. What this means for you:

• Affordability is gradually improving
• Lenders are competing harder for business
• More choice is returning to the market
• Buyers who prepare early are best placed to benefit

While rates are unlikely to fall overnight, the overall direction of travel has been encouraging, helping rebuild confidence among buyers and homeowners alike.

First time buyers: larger deposits and early planning

Recent industry data shows that around one in three first time buyers currently searching for a mortgage has at least a 25% deposit. This reflects a growing focus on affordability and long term stability, but it also highlights the importance of planning early. For first time buyers, that means:

• Exploring whether smaller deposits could still work
• Understanding which lenders suit your circumstances
• Getting advice early rather than waiting until you find a property
• Putting yourself in a strong position with a Mortgage in Principle

Every buyer's situation is different, and speaking to an adviser early can make a big difference.

What could 2026 look like?

Markets are expecting the Bank of England to hold the base rate at 3.75% at its February meeting, following the cut in December. Industry forecasts for the year ahead remain cautiously optimistic, as lower borrowing costs begin feeding through to real world affordability. Analysts are watching:

• Whether further base rate cuts arrive later in the year
• How quickly lender competition continues
• Whether buyer demand strengthens through spring and summer
• How house prices respond as confidence improves

The message is not that the market is booming, but that conditions are gradually becoming more supportive for buyers and movers.