Product choice in the mortgage market has reached its highest level since October 2007, according to new figures published by Moneyfacts.

According to the latest Moneyfacts UK Mortgage Trends Treasury Report, the latest count reached 7,158 options in January, with deals at both the 90% and 95% loan-to-value brackets also sitting at near 18-year highs.

The report showed that fixed mortgage rates have remained below 5% to start 2026. The average two-year fixed mortgage rate continued its downward trend to start January at 4.83%, while the average five-year fixed rate remained unchanged at 4.91%.

Moneyfacts suggested the falls in mortgage rates during 2025, along with product choice growth, has set a “positive stage” for the market in 2026.

Finance expert at Moneyfacts, Rachel Springall, said that borrowers and lenders would be in a “state of optimism”, off the back of a positive 12 months for the mortgage market in 2025.

“Expectations are high for a booming market in 2026,” Springall said. “Mortgage rates are lower year-on-year, and the choice of deals is abundant. The relaxation in stress testing and expectations for further rate cuts will help ease the affordability constraints on borrowers.

“First-time buyers are not being left behind by this progress, as deals aimed at those with a low deposit now stand at their highest levels for almost 18 years, yet more progress to support underserved buyers would be welcomed amid a lack of affordable housing.”

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