Latest News About Mortgage Advice

Here are the latest mortgage news highlights and practical takeaways for Londoners as of May 2026.

Key developments

• FCA and lender flexibility: Regulators have been reviewing affordability and stress-test approaches to help more borrowers access lending, with a focus on first-time buyers and later-life lending. This may translate into marginally higher borrowing power for some applicants if lenders adopt more forward-looking assessments.[1][4]
• 95% LTV schemes winding down: The government-backed 95% LTV guarantee schemes are ending at the end of June, which may reduce options for some first-time buyers who were relying on that support to reach the stamp duty threshold or to secure higher loan-to-value deals.[1]
• Lenders adjusting affordability rules: Several lenders have tweaked affordability tests (e.g., considering future rate rises rather than traditional fixed-rate stress tests), potentially allowing higher loan amounts for some borrowers.[4][1]

What this means for typical buyers in London

• For first-time buyers: Expect continuing competition among lenders, with some expanding product ranges or easing certain criteria, but the end of 95% schemes means you may need a larger deposit or seek alternative products (e.g., shared ownership or help-to-buy-style schemes where available). Talk to a broker to compare options across lenders and to understand current stress-test conventions.[4][1]
• For remortgages and refinances: Fixed-rate products may remain competitive in the near term, but watch for rate moves as swap rates influence pricing. If you’re on a variable or tracker, consider scheduling a review before your rate reset to avoid surprises.[9][1]
• Market volatility: London and the broader UK market may see fluctuating rates as lenders respond to inflation data and economic signals. Stay prepared with a budget buffer for rate changes and lender-specific requirements.[1][4]

Practical steps

• Get a broker review: A qualified broker can map out your borrowing capacity under current lender criteria and stress testing, helping you choose products that suit your timeline and budget. This remains a sound move given the ongoing regulatory and lender tweaks.[4][1]
• Check product pipelines: Even if 95% schemes end, many lenders will continue to offer competitive fixed- and tracker-rate deals. Compare multiple lenders to lock in a rate before any potential rises, especially if you’re planning to buy in London’s pricey markets.[1][4]
• Plan deposits and costs: London buyers often face higher upfront costs. Build a clear plan for deposit, stamp duty (where applicable), legal fees, and any ongoing maintenance budgets to avoid financing gaps when schemes end or product availability shifts.[1]

Illustration: scenario guidance

• If you’re a first-time buyer with a 15% deposit planning to buy in London, you might now see a tighter 85% LTV pool. A broker can help you identify lenders with flexible affordability criteria and the best overall terms given the end of 95% schemes and evolving stress-testing rules.[4][1]

If you’d like, I can tailor these insights to your situation (income, deposit, timeline) and pull a short list of current mortgage products and lenders that fit your profile. I can also provide a concise quick-checklist for a broker call.