If you’ve been thinking about buying a home in Lancaster or Morecambe but felt put off by mortgage rates over the last couple of years, there’s some genuinely encouraging news to start the year.
Mortgage product choice has surged in January to 7,158 different options, with 650 more deals available than this time last year. That’s the highest number of mortgage products on the market since October 2007, and it signals a real shift in confidence from lenders. For buyers locally, this means more choice, more flexibility, and better chances of finding a mortgage that actually fits your circumstances.
A Big Boost for First-Time Buyers
One of the biggest positives is for first-time buyers, who make up a large part of the Lancaster and Morecambe market. The number of mortgage deals available for buyers with 5% or 10% deposits is now at an 18-year high.
For many renters in areas such as Marsh, Scale Hall, Heysham, or the city centre, saving a large deposit has often been the biggest hurdle. More low-deposit mortgage options mean that hurdle is starting to come down, making it easier for buyers to take that first step onto the property ladder.
Mortgage Rates Are Heading in the Right Direction
It’s not just about choice either — mortgage rates are easing, which makes a noticeable difference to monthly repayments. The latest five-year fixed rate has fallen to around 4.0%, compared to 4.4% a year ago.
While that may seem like a small change, over the life of a mortgage it can add up to significant savings. For many buyers, it’s also the difference between a property feeling affordable or just out of reach.
Affordability Pressures Are Starting to Ease
Behind the scenes, lenders are also easing stress testing requirements. This means buyers no longer have to prove they can afford repayments at much higher hypothetical interest rates, which has been a barrier for many in recent years.
Alongside expectations of further interest rate cuts, this is helping to reduce affordability pressures and giving buyers more confidence to move forward with their plans.
What This Means for Lancaster and Morecambe
Locally, we’re already seeing steady interest from buyers who paused their plans during 2023 and 2024. With more mortgage products available and repayments becoming more manageable, those buyers are beginning to re-enter the market.
For first-time buyers, this creates opportunity. For sellers, it means a wider pool of proceedable buyers — something that’s always healthy for the local property market.
A More Positive Start to 2026
Every buyer’s situation is different, and good advice remains essential. However, with mortgage choice at an 18-year high and rates moving in the right direction, the outlook for buyers in Lancaster and Morecambe is far more positive than it has been for some time.
After a long period of uncertainty, the mortgage market is finally offering some breathing space — and that’s welcome news for anyone considering their next move in 2026.
Source: Dataloft by PriceHubble, Moneyfacts, Bank of England, December 2025.
If you are thinking of moving in 2026 and would like to discuss this article or how we could help you, please get in touch. At JDG we are here to help.
Thanks for reading
Michelle x