Average homebuyer £1,050 a year better off
Average homebuyer now £1,050 a year better off as lending improvements set to boost buyer activity in 2026
The latest market analysis from eXp UK has revealed that the average homebuyer is now £1,050 better off per year when it comes to the cost of their mortgage, with continued improvements to the lending landscape expected to help drive stronger buyer activity through 2026.
eXp UK analysed both mortgage approval levels and the current cost of a typical mortgage to understand how buyer demand has shifted and how much households are now saving as borrowing conditions improve.
The research shows that, despite a turbulent year for the wider property market, UK homebuyers remained engaged as stabilising interest rates ensured mortgage approval activity was robust.
In fact, an estimated 773,582 mortgages were approved in 2025, marking a 2.5% increase on 2024 and equating to an average of 64,465 approvals per month.
Further analysis from eXp UK highlights just how much better off buyers are in 2026.
Last year, the average property purchase required a 15% deposit of £40,414 and, at an average mortgage rate of 4.88%, this equated to a full repayment cost of £1,323 per month.
Today, a modest rise in house prices has seen the average deposit increase by £246, however the average mortgage rate has fallen to 4.15%.
As a result, the average homebuyer is now £87 better off each month when it comes to their monthly mortgage repayments. While this may seem modest in isolation, it equates to an annual saving of £1,049.76, or just shy of £2,100 over the course of a two year fixed-rate mortgage term.
Adam Day, Head of eXp UK and Europe, commented:
“The lending landscape has shifted notably over the last year and this is already translating into tangible savings for homebuyers, as lower mortgage rates mean that, even with modest house price growth, they are now benefitting from lower monthly mortgage payments.
As we move into 2026, these improvements to the lending landscape should continue to support buyer confidence and strengthen purchasing power which, after the subdued period for price growth seen over the last 12 months, should also help to drive higher rates of house price growth.”
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