Mortgage trends and insights
Here you can find useful key mortgage trends from the last quarter (October to December 2025).
Insights given are based on current market data and lender activity. They are designed to help you make informed decisions about your mortgage and are useful tools when used alongside professional advice.
Let’s talk rates
Buy to Let mortgage (BTL) pricing in late 2025 was shaped by swap rate expectations, lender appetite and rental stress testing rather than the base rate, despite a cut to 3.75%. UK Finance notes mortgage refinancing will dominate 2026, as around 1.8 million fixed-rate deals end; remortgaging is set to rise by 10%. The Bank of England plans to ease capital rules to around 13% to promote lending, making loans more accessible.
For more information, see our BTL rate guide page.
First rate insights
Affordability for UK first-time buyers (FTB) improved in 2025, thanks to lower mortgage rates, rising wages and slower house price growth. Lloyds notes this positive change reflects a combination of these factors. The reintroduction of 100% mortgages in recent years has made homeownership more attainable, especially as saving for deposits remains difficult amid the cost of living crisis and due to reduced rental options.
If you are preparing to buy your first home, see our FTB rate guide page for more information.
Mortgage market Nottingham
ONS figures show Nottingham’s average house price was £194,000 in November 2025, a 1.5% rise year on year, though this was lower than the East Midlands’ 2.7%. Conversely, private rents climbed 5.9% to £1,000 in December 2025, outpacing regional growth. Nationally, house price growth is slowing but rents are still rising, driven primarily by higher incomes and lower mortgage rates. First-time buyers in Nottingham paid £178,000 on average, up 1.7% year-on-year.
For a more detailed look at what’s going on with mortgages in Nottingham and the region, see our Nottingham mortgage and property insights page.
Current remortgaging rates news
The Bank of England’s December 2025 rate cut to 3.75% has prompted lenders including HSBC, Nationwide, Santander and Barclays to lower their mortgage rates, particularly for low Loan to Value (LTV) products, with some now below 4%. This competitive environment is expected to drive a surge in remortgage activity. Fixed-rate pricing remains forward-looking and analysts predict a “booming” mortgage market, especially as greater predictability in rates boosts property market confidence.
For more in-depth information and insights, see our remortgaging rate guide page.
Homemovers and rate shaker information
Forecasts for 2026 indicate moderate house price growth, with Nationwide and Halifax predicting increases between 1 and 4%. Mortgage lending is set to rise, though transactions remain steady. HSBC was the first large UK lender to cut rates in 2026 followed closely by others. Despite a slight fall in prices at the end of 2025, the market remains resilient. Nottingham’s average house price grew 0.8% year on year, reaching £195,000 in October 2025.
See our homemover rate guide page for more details.
Mortgage market Derby
According to ONS figures, Derby’s average house price in November 2025 was around £205,000, remaining flat year on year. Across the East Midlands, house prices rose by 2.7%, with the UK average home value reaching £271,000, up from £265,000 in November 2024.
First-time buyers in Derby paid around £183,000. Detached homes realised an average of £313,000, semi-detached £207,000, terraced £164,000 and flats or maisonettes £109,000.
Rents averaged £837, reflecting persistent rental pressure.
For a more in-depth look at what is going on in Derby and the neighbouring region, take a look at our Derby mortgage and property insights page.
Best buy tables: In the know
Our best buy tables can help you get an idea of the mortgage rates available currently, whether you’re looking for a new deal, remortgaging, buying your first home or need a Buy to Let mortgage.
Use them to compare mortgage deals before meeting with one of our experienced mortgage advisers, for a personalised quote.
Intuitive mortgage trends and insights
To summarise, in late 2025, Buy to Let mortgage pricing was driven by swap rates and lender appetite, not just base rates.
Remortgaging is set to rise in 2026 as many fixed-rate deals end.
First-time buyer affordability improved due to lower rates and rising wages, aided by the return of 100% mortgages.
House price growth slowed, while rents continued climbing, reflecting ongoing rental market pressure and confidence in the market.
Talk to a James Leighton mortgage adviser about getting the most from the current mortgage market.
References
https://www.ukfinance.org.uk/news-and-insight/press-release/modest-growth-forecast-mortgage-lending-in-2026
https://www.theguardian.com/business/2025/dec/02/boe-capital-rules-banks-growth-bank-of-england-stress-tests
https://www.lloydsbankinggroup.com/media/press-releases/2025/lloyds-bank-2025/lloyds-affordability-review.html
https://www.ons.gov.uk/visualisations/housingpriceslocal/E06000018/
https://www.theguardian.com/business/2025/dec/18/bank-of-england-cuts-interest-rates-to-375
https://www.theguardian.com/money/2025/dec/15/uk-house-prices-rise-interest-rates-nationwide
https://www.theguardian.com/business/2026/jan/04/hsbc-first-big-uk-lender-cut-mortgage-rates-2026
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/october2025
https://www.ons.gov.uk/visualisations/housingpriceslocal/E06000015/