Category: Mortgage Rates & Market Updates

Global oil prices have surged past $100 per barrel, a level that often sends ripples through
financial markets.
While this might initially appear to affect only petrol prices and energy bills, the economic
impact can spread much further. Higher oil prices can influence inflation, central bank
policy decisions, and mortgage rates.

After a relatively calm start to 2026, the mortgage market has been hit by a sudden volatility
spike.
Rising energy prices linked to Middle East tensions have pushed swap rates higher, which
lenders use to price fixed mortgages. As a result, mortgage rates have moved back above 5%,
and lenders have started withdrawing products from the market.

Many UK homeowners secured mortgages during a period of record-low interest rates. In
2020 and 2021, borrowers with strong deposits could obtain five-year fixed mortgage deals
close to 1%.

• Yes, some lenders will accept 1 year of accounts
• A strong SA302 and accountant reference significantly help
• Deposit size can influence lender choice
• Industry background and previous employment matter
• Not all lenders offer this option

• Mortgage rates in early 2026 have stabilised between 3.5% – 4.5% for many
borrowers.
• Affordability has improved compared to 2023–2024 peaks.
• In some Northern regions, buying can now cost less monthly than renting.
• London and the Southeast remain the least affordable regions despite rate
improvements.
• Deposit size and income multiples vary by region.

As of March 2026, the Bank of England Base Rate stands at 3.75%. Prior to recent
geopolitical developments, markets were pricing in roughly a 50/50 chance of a rate cut at
the March 19, 2026 Monetary Policy Committee meeting.

For several years, renting appeared financially safer.
Mortgage rates peaked.
Stress testing tightened.
Borrowing power reduced.
But February 2026 looks very different.

Mortgage timelines across the UK vary depending on lender checks, legal processes, property chains, and documentation requirements. Understanding each stage helps set realistic expectations and reduce unnecessary delays.

For company directors, one of the most common questions when planning a property
purchase is:
Should I take more dividends, or will lenders recognise retained profits?

The UK private rental sector is undergoing gradual structural change influenced by regulation, taxation, financing conditions, and investor sentiment.
While commentary sometimes frames these shifts as a reduction in landlord participation, the reality is more nuanced. Some investors are reviewing portfolios, others are restructuring, and many continue to invest where opportunities align with long-term objectives.