Homing in on uplifting developments for property

The House Price Index figures for February 2026, published on 22 April by the Registers of Scotland, reveal the average price of a Scottish property was £187,000, up2.3 per cent from the same time in 2025.

In February, the highest-priced area to purchase a property was the City of Edinburgh, where the average price was £295,000.Mortgage mattersTurning to mortgages, while affordability is still a problem as cost-of-living pressures show little sign of easing, a positive feature is a recent spate of mortgage rate reductions by a number of prominent lenders.

For example, over the last few days Nationwide has announced a cut across its fixed-mortgage range for first-time buyers and home movers. The changes will see rates reduced by up to 0.25 percentage points across two, three and five-year fixed-rate products. These changes now mean Nationwide’s lowest rate stands at 4.5 per cent.

Carlo Pileggi, Nationwide’s head of mortgage products, says: “These changes apply across those ranges, with some of our largest cuts being made on higherloan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”

Skipton Building Society has reduced rates across two fixed residential products, alongside the launch of new two and five‑year fixed residential options, and new two‑year fixed buy‑to‑let products.

The lender said that, overall, its rates have fallen by an average of 0.07 per cent, with the largest cut being 0.27 per cent.

But these developments – and similar moves by other lenders, including HSBC, Barclays and TSB – come against a background of uncertainty.

Jen Lloyd, head of mortgage products and propositions at Skipton, observes: “While falling rates offer encouraging signs for the market, a degree of caution remains important. Conditions continue to be volatile amid ongoing global conflicts and broader economic uncertainty, and it’s too early to say whether this marks a sustained downward trend.”

Darren Polson, head of mortgage operations at property and legal firm Aberdein Considine, observes: “Current economic and geopolitical conditions have, understandably, created a perception of a very difficult mortgage market. Affordability is still a huge issue, of course, and many people are simply not able to save for a deposit or make the potential repayments.

“However, we are seeing a disconnect between that overall perception and what’s actually happening in the market, which is more buoyant than people might think.”

He adds that because lenders typically price their products so far in advance, the global geopolitical situation isn’t having as much of an impact as people might expect.

Lenders also stress-test these kinds of crisis scenarios that lead to big rate hikes when they’re assessing a potential mortgage candidate. “These eventualities are almost built into the lending agreement. It’s the cost of living that’s having more of an immediate impact, especially for first-time buyers,” he explains.

Darren also believes that, with government schemes such as Help to Buy no longer widely available for applicants, lenders have had to get creative with their offerings.

“We’re seeing more alternative products on the market, like 98 to 100 per cent mortgages, or mortgage assessments that take into account a person’s rental history, which are creating opportunities for people who just wouldn’t be able to buy otherwise,” he says. “But that wider perception issue means that a lot of people aren’t even aware of these kinds of options, because they just believe buying isn’t possible for them.”

According to Darren it’s not just first-time-buyers that will be anxious about rates and affordability. An estimated 1.8 million people are due to come off fixed rates in the UK this year.

“For those coming off two-year fixes, their rates are likely to increase marginally. For those with five-year fixes, however, rates are more or less the same now as when they would have fixed. And for some, their loan-to-value ratio will have shifted, so they might even be pleasantly surprised by being offered a lower rate,” he says.

“The market is by no means easy, but there are plenty of positives that not enough people are aware of. Ultimately, if it’s the right property, it’s the right time. The most important thing to do is to get advice to understand the options available,” Darren concludes.

Call for change

A campaign has been launched by a mortgage entrepreneur who says homeowners could potentially save thousands of pounds if a change is introduced by the Financial Conduct Authority (FCA).This is because many homeowners are not aware they could reduce their mortgage rate, often very significantly, before their new deal even starts, according to the campaign.

Lee Flavin, who runs RateSwitch (go online to www.rateswitch.uk), has worked in the mortgage industry for 20 years and is calling on the financial regulator to require brokers and lenders to tell their customers upfront that the option to switch to a better deal before it begins is available.

He describes this as the “mortgage market’s best-kept secret”.

Lee explains that when homeowners secure a mortgage rate –whether switching to a new deal with their existing lender, remortgaging to a new one, or buying a new property –most assume the rate is set in stone from that point forward, even though it may not start for up to six months.

He adds that what the official mortgage process fails to make clear is that if their lender reduces its rates before the deal begins, they can usually swap it for free as many times as necessary up until the new one takes effect.

He claims the overwhelming majority of borrowers have never been told about this option, despite the Consumer Duty –introduced by the FCA in 2023 – requiring brokers and lenders to deliver good outcomes

.“Lenders have done great work over the past few years to make this possible,” says Lee. “The FCA now has the power to make it a reality for every borrower in the country – and they could implement this almost overnight.”

As part of this campaign, and to help with this growing problem, RateSwitch has launched a free alert service so that homeowners can monitor mortgage rates in the lead-up to their next switch date.

Support for home buyers

The Help to Buy scheme has been closed to new applicants in Scotland and England for the last few years, and experts say that many looking to get on the housing ladder remain confused about what support is now available.

A recent survey by David Wilson Homes revealed that 9,000 searches for Help to Buy were made in Scotland over the past year, averaging 810 searches per month.

The research also included a survey of 1,000 UK adults, and found that 32 per cent believe that Help to Buy is still available, while a further 41 per cent are unsure.

The housebuilder analysed Google search data from the past 12 months and surveyed 1,000 UK adults to assess understanding and perceptions of current home-buying schemes.

Terry Higgins, group managing director for TNHG Mortgage Services, was then consulted to address common misconceptions and provide guidance around what is available to buyers in 2026.

For example, the David Wilson Homes research found that 15 per cent of people believe a 20 per cent deposit is needed to buy a house.

“This isn’t always the case, and this misconception can discourage buyers who are otherwise ready to purchase a home,” says Terry.