The UK mortgage market has reached a significant milestone, with the number of available deals soaring to its highest point in nearly two decades. New data reveals a landscape of abundant choice for borrowers, coupled with falling interest rates, creating what industry experts are calling an excellent environment for buyers.
Market Hits Highest Product Count Since 2007
According to the latest research from financial information provider Moneyfacts, the total number of mortgage products on offer has surged to 7,158. This represents a substantial month-on-month increase and is 650 deals more than were available at the same time last year.
Critically, this is the highest level of choice recorded since October 2007, marking a huge recovery for the lending sector. The growth is particularly pronounced for buyers with smaller deposits, as deals in the 90% and 95% loan-to-value (LTV) brackets have reached near 18-year highs.
Rates Decline as Optimism Grows
Accompanying the surge in product numbers is a welcome drop in the cost of borrowing. The Moneyfacts Average Mortgage Rate has fallen to 4.87%, down from 4.91% the previous month. Year-on-year, the decline is even more marked, with the average rate falling by 0.53% from 5.40% in January 2025.
Rachel Springall, a Finance Expert at Moneyfacts, stated that both borrowers and lenders are entering 2026 in a state of optimism. "Expectations are high for a booming market in 2026," she said. "Mortgage rates are lower year-on-year, and the choice of deals is abundant."
Springall highlighted that the relaxation of stress testing rules and anticipated further base rate cuts will help ease affordability pressures. She also noted the progress for first-time buyers, while cautioning that a lack of affordable housing remains a key challenge.
Experts Urge Borrowers to Seek Professional Advice
Industry brokers have welcomed the data but stress the importance of expert guidance in navigating the expanded market. Stephen Perkins, Managing Director at Yellow Brick Mortgages in Norwich, told Newspage: "The plethora of products available to borrowers... shows that now is an excellent time to buy or move."
He added a crucial note of caution: "The vast choice also emphasises the need for professional advice in selecting the most suitable product for your circumstances as big savings can be secured."
Echoing this sentiment, Emma Jones, Managing Director at Whenthebanksaysno.co.uk in Runcorn, described the product count as a "huge milestone for the mortgage market." She pointed out that the availability of high LTV deals is vital for market activity and predicted that if rates continue to "nudge down," property transactions will rise accordingly.
The convergence of greater choice, lower rates, and improved accessibility for those with small deposits paints a markedly positive picture for the UK housing market as it moves further into 2026.
