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UK Mortgage Choice Hits Highest Since 2007 as Average Rate Dips to 4.87%

Brokers urge caution, with strict checks persisting despite cheaper deals.

Overview

  • Moneyfacts counts 7,158 mortgage products, the most since October 2007, up about 650 from a year earlier, with 90% and 95% LTV options near 18-year highs.
  • The Moneyfacts Average Mortgage Rate has edged down to 4.87%, from 4.91% last month and 5.40% a year ago.
  • Lenders are competing more aggressively and have eased some criteria, and analysts forecast further rate reductions as early 2026 progresses.
  • Choice has widened for first-time and low-deposit buyers, though the best pricing typically goes to lower LTV borrowers with strong credit profiles.
  • Around 1.8 million borrowers are coming off fixed deals in 2026, and brokers flag uneven pricing and rigorous affordability checks, advising borrowers to seek professional guidance.