Homebuyers entering the market this Christmas are benefiting from improved mortgage choice and lower borrowing costs compared with a year ago, according to new analysis from Alexander Hall.

The research, carried out by the mortgage adviser, suggests that despite the absence of new affordability measures in the recent Autumn Budget, conditions have become more favourable for borrowers across all major market segments.

Alexander Hall assessed the current mortgage landscape by examining product availability, average rates and how both compare with December last year, alongside the impact on typical monthly repayments.

The findings indicate that the number of mortgage products available has increased across the board, with buy-to-let landlords seeing the most pronounced improvement.

PRODUCT AVAILABILITY IMPROVES ACROSS THE MARKET

Despite ongoing regulatory change, including the introduction of the Renters’ Rights Act, lender appetite in the buy-to-let sector has strengthened. The number of buy-to-let mortgage products on the market is up 68% compared with last Christmas.

First-time buyers have also seen a notable uplift in choice, with product availability increasing by 23% year on year. Home movers and remortgagers have experienced more modest, but still positive, growth of 3% and 5% respectively.

LOWER RATES SUPPORT AFFORDABILITY

Borrowing costs have also eased since December last year, with average mortgage rates falling for every category of borrower.

Buy-to-let investors have again seen the largest shift, with average rates down by 0.77%. First-time buyers are paying around 0.6% less on average, while rates for home movers and remortgagers have fallen by 0.42% and 0.34% respectively.

MONTHLY SAVINGS FOR TYPICAL BUYERS

Alexander Hall also modelled the impact of these changes for a buyer purchasing at the current average UK house price of £272,998.

Although average property values have risen by 1.3% over the past year, increasing the required 15% deposit from £40,414 to £40,950, lower mortgage rates have more than offset this increase.

Based on the average two-year fixed rate at 85% loan-to-value, a buyer making full capital and interest repayments would now pay £1,255 per month, compared with £1,323 last Christmas.

This £68 monthly saving amounts to £1,640 over the course of a two-year fixed mortgage, offering some relief at a time when many households continue to face cost-of-living pressures.

Richard Merrett, managing director of Alexander Hall, said: “While the Autumn Budget may have disappointed buyers hoping for direct support, the reality is that market conditions this Christmas are considerably more favourable than they were a year ago.

“We’ve seen a steady expansion in mortgage product availability and a meaningful reduction in rates across every major borrower group and, for the average homebuyer, this translates into lower monthly repayments and greater flexibility when choosing a mortgage.

“What’s more, we’re now seeing clear affordability improvements from an income-to-lending perspective. Many major lenders have strengthened their affordability assessments over recent months, allowing borrowers to access higher loan amounts than were possible a year ago.

“For buyers, that means more choice, greater purchasing power, and a better chance of securing the home that truly meets their needs.

“As we move into 2026, we expect improved mortgage affordability to continue supporting confidence and stability across the property market.”