Mortgage pricing and lending criteria continue to move in different directions. Pepper Money has reduced selected residential and buy-to-let rates, including two-year residential fixes up to 75% LTV, while first direct has cut selected fixed rates by up to 0.19%. Atom Bank has increased loan-to-income limits for prime and near-prime borrowers up to 90% LTV, targeting households with incomes between £45,000 and £60,000.
These product changes may broaden options for some clients, but the wider affordability backdrop remains challenging. UK Finance research cited by what MORTGAGE describes first-time-buyer affordability as at its most squeezed since 2008, while Bank Rate was maintained at 3.75% in July 2026. Advisers should avoid treating isolated rate cuts or higher LTIs as evidence that affordability pressures have disappeared.
- For first-time buyers: compare total costs, deposit resilience and the consequences of higher borrowing.
- For remortgage clients: assess product fees, revert rates and the benefits of acting before a deal expires.
- For AI-enabled research: use tools to monitor criteria and rate changes, but verify live lender sourcing and affordability evidence before recommending a product.