The question “Should I buy a house now?” is perhaps the most debated topic at British dinner
tables. After the economic rollercoaster of 2024 and 2025, we have entered 2026 with a
surprisingly different landscape. At Mortgage Bazaar, we’ve seen a shift from the “wait and
see” hesitation of last year to a period of “cautious opportunity.”
If you are standing on the sidelines, trying to time the market perfectly, this guide will break
down the current mortgage rates, house price forecasts, and the hidden costs of waiting.
The 2026 Economic Backdrop
As of January 2026, the UK housing market has reached a state of “steady normality.” The Bank
of England cut the base rate to 3.75% in December 2025, which has acted as a catalyst for
lenders like HSBC, Barclays, and Nationwide to drop their fixed-rate products below the 4%
mark.
For the first time since the 2022 mini-budget, the “mortgage price war” is in full swing. But does
a lower interest rate automatically mean you should buy? Let’s look at the data.
1 . The “Buy Now” Argument: Pros of the 2026 Market
Falling Mortgage Rates
The most compelling reason to act now is the trend in borrowing costs. With average 2-year and
5-year fixed rates hitting their lowest levels in years, the monthly affordability of a home has
improved. For many, the cost of a mortgage is once again becoming more attractive than the
ever-rising cost of rent.
A “Buyer’s Market” Mentality
While house prices are predicted to rise by 1% to 3% over the course of 2026, the current
inventory levels are high. Many sellers who held off in 2025 have finally listed their properties,
giving buyers more room to negotiate. At Mortgage Bazaar, we are seeing many clients secure
properties at 2% to 5% below the asking price—a scenario that was impossible during the
pandemic boom.
Regional Growth Hotspots
If you are looking outside of London, the 2026 market is particularly strong. Regions like the
North West (Wigan, Manchester) and Scotland (Motherwell, Glasgow) are seeing resilient
growth and high demand, making them excellent spots for both first-time buyers and investors
looking for capital appreciation.
2. The “Wait and See” Argument: Cons to Consider
Modest Capital Growth
If you are looking for a “get rich quick” investment, 2026 might not be your year. Most experts,
including Halifax and Zoopla, predict house price growth will be steady rather than explosive.
You are unlikely to see your home’s value jump 10% in a year, which means property should be
viewed as a long-term (5+ year) commitment.
The “Mansion Tax” and Regulatory Changes
For those at the top end of the market, the upcoming “Mansion Tax” (affecting homes over £2
million) and changes to Stamp Duty thresholds in April 2025 continue to influence buyer
behavior. If you are buying a high-value property, the tax implications may outweigh the benefits
of a lower interest rate.
3. The High Cost of Waiting
Many people wait for a “market crash” to buy. However, history shows that timing a crash is
nearly impossible.
- Rent vs. Equity: Every month you spend waiting is a month spent paying a landlord’s mortgage instead of your own. With UK rents hitting record highs in 2026, the “cost of waiting” can often exceed the “savings” of a slightly lower house price.
- Lender Criteria: When prices do drop, lenders often tighten their criteria. It is better to buy in a stable market with a 95% LTV mortgage than to wait for a crash only to find that banks now require a 20% deposit.
4. Specialist Advice for 2026 Borrowers
At Mortgage Bazaar, we know that every buyer has a unique story. The “Should I buy?” question
depends entirely on your specific status:
For First-Time Buyers
You are currently in a “sweet spot.” Lenders are hungry for your business, offering high LTV
(90–95%) deals and even 100% deposit-free options for those with strong rental track records
For Skilled Worker Visa Holders
If you are in the UK on a visa, 2026 is a landmark year. With the transition to eVisas and more
lenders accepting foreign nationals with just 12 months of residency, you no longer have to
wait years to call the UK “home.” We specialize in navigating these specific criteria to get you
approved where high-street banks might say no.
5. How to Prepare for a 2026 Purchase
If you decide that now is your time, follow these three steps to ensure success.
- Check Your True Affordability: Don’t rely on online calculators. Speak to a whole-of-market broker at Mortgage Bazaar who has access to 200+ lenders.
- Audit Your Credit Score: In a competitive rate environment, a “Good” vs. “Excellent” score can be the difference between a 3.5% and a 4.1% rate.
- Get an Agreement in Principle (AIP): In 2026, sellers are prioritizing “proceedable” buyers. Having your AIP ready shows you mean business.
Final Verdict: Is 2026 the Year to Buy?
If you have found a home you love, you have a stable income, and you plan to stay for at least
five years, then yes—now is an excellent time to buy. The combination of stabilizing house
prices and falling mortgage rates offers a window of predictability that we haven’t seen in nearly
half a decade.
Stop guessing the market and start planning your future.
Get Your Free Quote Today
At Mortgage Bazaar, we pride ourselves on a 14-day average processing time and a 90%+
approval rate. Let us handle the complexity while you focus on the keys.
- Get Quote: Nikhil Bhatia
- WhatsApp: +44 7760747504
- Email: nikhil@mortgagebazaar.co.uk
- Website: www.mortgagebazaar.co.uk
Disclaimer: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR
PROPERTY | YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON YOUR MORTGAGE.