Summer Mortgage Series 2026: UK Mortgage Market News : Buyers Return as Lenders Keep Cutting Rates

Friday 28 August 2026

Welcome to the Friday edition of our Summer Mortgage Series 2026, where we look at the latest UK mortgage and property market news and explain what it could mean for you here in Woking, Camberley and Guildford.

This week brings some encouraging signs. More buyers are searching for homes, lenders are trimming selected fixed mortgage rates, and the early autumn market is beginning to stir.

However, we are not quite at a full recovery yet. Mortgage affordability remains stretched, buyers have less borrowing power than they did at the start of the year, and wider uncertainty is making many households understandably cautious.

So, let’s unpack the news in plain English.

More buyers are returning: but sales have not fully recovered

According to Zoopla’s latest market update, UK property searches are now 7% higher than a year ago.

Most importantly, this is the first time in a year that searches have risen across every region of the UK. That suggests people are becoming more willing to explore their options, whether they are searching for a first home, a larger property, or a better location for a home office and family life.

Here in Woking, that could mean more people are once again looking at homes close to the station, family-friendly neighbourhoods and properties with the potential for a state-of-the-art kitchen or a cosy garden room.

But there is an important note of caution: sales agreed remain around 6% below last year.

In other words, more people are browsing, booking viewings and thinking about moving: but some are still waiting before making an offer. The market is showing signs of an early autumn rebound, but it is not yet back to full strength.

We can think of it like a high street reopening after a quiet summer. The lights are on, people are looking in the windows again, and more shops are welcoming customers: but it may take a little longer before the tills are ringing at full volume!

Buyer power has fallen by 9% since January

One of the biggest challenges this year has been affordability.

Zoopla reports that buyer purchasing power has fallen by approximately 9% since January, with mortgage rates sitting around 4.8% for the typical comparison used in its analysis.

Buyer power simply means how much a household can borrow while keeping repayments within an affordable range. When rates rise, the same monthly budget supports a smaller mortgage.

The figures show that the average buyer now needs roughly £18,200 more deposit to keep the same monthly repayments they could have achieved at the start of the year.

That is a substantial sum. For many households, it could mean delaying a purchase, choosing a less expensive property or saving for longer.

It is worth remembering, though, that these are national averages. Your own position will depend on your income, deposit, existing debts, credit history, term and the mortgage products available for your circumstances.

If you are hoping to buy in Woking, do not automatically assume that a national headline tells you what you can or cannot afford. Speaking to a mortgage advisor in Woking can help you understand your realistic budget before you start making plans.

Lenders continue to cut selected mortgage rates

The more positive news is that lenders are still competing for business.

This week, Accord Mortgages reduced selected two-year fixed rates by up to 0.20%. It also made reductions across some three-year and five-year fixed products.

TSB cut selected two-, three- and five-year fixed house-purchase rates by up to 0.20%, while selected three-year remortgage products were also reduced.

Mortgage Solutions’ weekly round-up provides further details about these changes.

Halifax has also reduced selected homemover and remortgage rates earlier in August. Its reductions included fixed-rate products for people moving home and homeowners looking to refinance.

These cuts are welcome, but they do not mean every borrower will suddenly be offered a dramatically lower rate. Mortgage pricing varies according to the size of your deposit or equity, your loan amount, property type and personal circumstances.

The average two-year fixed residential mortgage rate is around 5.59%, according to Moneyfacts’ latest mortgage market update.

That figure is an average rather than a personal quotation. Some products may be lower for borrowers with a larger deposit or substantial equity, while other cases may be priced higher.

This is why comparing the overall cost matters. A mortgage with a lower rate but a large arrangement fee may not be cheaper than a slightly higher-rate product with no fee. Like choosing between an artisan coffee and a home-brewed one, the headline price is only part of the story!

The Bank of England base rate remains at 3.75%

The Bank of England base rate remains at 3.75%, following its August decision to hold rates.

The base rate is the Bank of England’s benchmark interest rate. It influences many variable-rate mortgages and forms part of the wider background used by lenders when setting their pricing.

A base-rate hold does not mean fixed mortgage rates must remain unchanged. Fixed rates are also influenced by wholesale funding costs, market expectations and competition between lenders. That is why Accord and TSB can reduce selected fixed products even while the base rate stays where it is.

For borrowers, the key message is that mortgage pricing can move in both directions. A deal available today could be withdrawn or repriced next week.

If you have found a suitable rate, it may be sensible to discuss securing it while continuing to monitor the market. We can talk you through how this works and whether your lender permits a lower-rate switch before completion.

Rightmove reports falling asking prices and more housing stock

Earlier this month, Rightmove reported that average asking prices for newly listed homes fell by 2.0% in August, bringing the average to £364,999.

This was the biggest August asking-price drop since 2018.

Rightmove also reported that available housing stock is at a 12-year high for this time of year. More properties for sale can give buyers greater choice and, in some cases, more room to negotiate.

For buyers in Woking, Camberley and Guildford, this could create opportunities: particularly if a property has been on the market for some time or the seller is keen to move before the autumn becomes busier.

But do not stretch yourself simply because an asking price has been reduced. A property may have a beautiful open-plan kitchen, a peaceful garden or the perfect space for a home office, but the mortgage still needs to be affordable every month.

What could affect the market this autumn?

The October Budget is likely to remain a source of uncertainty for buyers, homeowners and landlords.

Until the Chancellor’s announcements are known, some households may decide to wait before committing to a purchase, remortgage or investment. We are also watching wider geopolitical developments and the risk of energy-price increases, which could affect inflation and household budgets.

None of this means you should put your plans on hold automatically. It does mean that careful preparation is especially valuable.

Start putting some extra pennies aside if you can. Review your monthly spending. That daily takeaway coffee may feel harmless, but swapping a few shop-bought coffees for home-brewed ones could gradually build a useful moving or mortgage buffer!

What should you do if you are planning to buy or remortgage?

We suggest taking these practical steps:

1. Check your budget carefully. Work out what monthly payment would remain comfortable if household costs rise.
2. Get an agreement in principle. This is an initial indication of how much a lender may be prepared to offer, subject to further checks.
3. Compare the whole mortgage cost. Consider the rate, fees, incentives, early repayment charges and flexibility.
4. Do not wait until your current deal ends. If you are remortgaging, start reviewing your options several months in advance.
5. Check your protection. A mortgage is a major financial commitment, so consider whether mortgage protection insurance, income protection or life cover could help protect your household.
6. Take advice before making an offer. A mortgage broker in Woking can assess products from a wide range of lenders and help manage the paperwork.

If you are already tied into a fixed mortgage, check for early repayment charges before switching. These are fees that may apply if you repay or replace your mortgage before the end of the initial deal period.

The solution is not to panic. We can review your existing mortgage, check the timing and compare the cost of staying put with moving to a new lender.

Our view: encouraging signs, but preparation still matters

This week’s figures give us reasons to be cautiously optimistic.

More people are searching for homes. Every UK region has seen an annual increase in search activity. Lenders are cutting selected mortgage rates, while higher housing stock may give buyers more choice and negotiating power.

At the same time, sales remain below last year, buyer power has fallen, and the average household needs a significantly larger deposit to maintain the same monthly repayments.

For people planning to buy in Woking, Camberley or Guildford, the right approach is neither rushing nor waiting indefinitely for a perfect market. Instead, understand your numbers, prepare early and take advice based on your personal circumstances.

Our local team is here to relieve the stress, talk you through the options and handle much of the paperwork. Whether you are buying your first home, moving to a property with more space, or looking for remortgage advice, we are always here to help.

Contact Alexander James Mortgage Services to discuss your next step with our friendly local team.

Mortgage rates and product availability can change. Your property may be repossessed if you do not keep up repayments on your mortgage. Protection policies are subject to eligibility, terms, conditions and exclusions.

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