The Bank of England has reported a significant increase in new mortgage agreements during the first quarter of 2026, reaching a total value of £78 billion. This surge in commitments contrasts with a decline in gross mortgage advances, which fell to just under £70 billion. The mixed signals from these figures highlight the evolving market of the UK mortgage market, particularly affecting landlords and potential buyers.
TL;DR: New mortgage agreements rose significantly in Q1 2026; however, gross mortgage advances dropped, indicating a cautious market for buy-to-let mortgages.
What do the latest figures reveal about the mortgage market?
The Bank of England’s latest data indicates a complex scenario for the UK mortgage market. While new mortgage commitments have increased, the value of mortgages advanced has decreased significantly. A large portion of the mortgage advances were directed towards owner-occupiers, with a notable rise in remortgaging activity. The share of loans for remortgaging increased from the previous quarter, while the proportion of owner-occupier advances for purchasing homes dropped.
How does this affect buy-to-let mortgages?
For buy-to-let landlords, the increase in new mortgage agreements may suggest a renewed interest in property investment, despite the overall decline in gross mortgage advances. The share of gross mortgage advances for buy-to-let properties rose slightly, indicating a stabilisation in the buy-to-let sector. This could provide opportunities for landlords looking to expand their portfolios. For more information on current rates, check out our buy-to-let mortgage rates.
What should borrowers and brokers watch for next?
As the Bank of England approaches its next base rate decision, both borrowers and brokers should closely monitor any potential impacts on affordability and market confidence. The current trends suggest a mixed outlook; while new commitments are rising, the decline in gross advances points to underlying weaknesses in the market. Brokers should prepare for varying client needs, particularly those seeking remortgage options as the share of remortgaging continues to grow.
What this means for landlords and investors
Landlords and property investors should take note of the increasing remortgaging activity, as it may present opportunities to refinance existing properties at more favourable rates. With arrears trending downwards and reaching their lowest levels since a previous quarter, borrowers appear to be demonstrating resilience despite ongoing affordability pressures. Investors should remain vigilant, ensuring they are well-informed about market conditions and ready to act when opportunities arise. For those considering their options, using a BTL affordability calculator can help assess potential investments.
Frequently asked questions
What is the current trend in buy-to-let mortgages?
The share of gross mortgage advances for buy-to-let properties has increased slightly, indicating a potential recovery in the buy-to-let market, despite overall declines in mortgage advances.
How should borrowers prepare for potential interest rate changes?
Borrowers should stay informed about the Bank of England’s upcoming decisions on interest rates, as changes could significantly impact mortgage affordability and market activity.