The Bank of England held the base rate at 3.75% on 17 September 2026. For most first-time buyers, the most important thing to understand is the lending criteria. For sellers, your autumn window to move before year end is now, officially, open.
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James Stevenson, Managing Director of Sales at Foxtons, and Richard Merrett, Managing Director of Alexander Hall, are back at The Brentford Project by Ballymore to discuss what's changed for first-time buyers, what sellers should do this autumn and what happens if your fixed rate is ending.
What's actually changed for first-time buyers
The number every first-time buyer is looking to dig out of the news articles right now is how much you can borrow. Annoyingly, it's not there. The base rate and the products that are available in the mortgage market are two different things. Eighteen months ago, many first-time buyers could borrow four and a half to five times their salary. Some lenders are now offering five and a half to six times on the back of a government and regulatory push to widen home ownership.
If you're wondering what has changed in deposit size, you're in the same boat. A 5% deposit remains the rough standard, but a handful of major lenders are now offering products from as little as £5,000 down. There is much more wiggle room on deposit size than you might expect, if you've got a knowledgeable mortgage adviser to walk you through it.
"Whereas as little as 18 months ago, most first-time buyers would be able to borrow four and a half to five times salary, you've now got lenders offering as much as five and a half to even six times salary. And that makes a real difference in terms of the options that people have for the type of property or the location of the property that they can buy."
Richard Merrett
Managing Director of Alexander Hall
What buyers should do this week
Ready to get started? Here's what to do:
For more about your mortgage options, watch our video: How to buy your first home with a small deposit.
📌 Are you eligible for a no-deposit mortgage?
📌 What different types of mortgages are there?
Stick with fixed or move to tracker?
A wave of 5-year fixed-rate deals matures this year. If yours is one of them, the choice between fixed and tracker comes down to your own appetite for risk. Trackers currently price a little cheaper than fixed, which suits anyone comfortable riding out further movement. Anyone who'd rather not think about the rate again for two or five years is paying for that certainty.
Either way, the advice is the same: you don't have to wait until the last moment and simply stick with the rate you're given. A broker working across the whole market will have a lot of personalised advice to share on your next move.
Want to know more? Watch our video: What to do before your fixed rate ends.
What sellers need to know this autumn
We are in the property market's second wave. Buyers who spent the summer browsing property tours on Instagram come back with a real plan in mind for September and October, which makes this the window you'll need to hit if you want a buyer secured before Christmas or a sale wrapped early next year.
In our experience, the buyers in this market are serious and determined. They will be looking for a fast, smooth purchase just as much as you're looking for a fast, smooth sale.
The other key bit of insight: ignore the London-wide average price you'll see quoted this week. Foxtons offices sit either side of it by hundreds of thousands of pounds, from neighbourhoods averaging £450,000 to others averaging £1 million. A borough-level conversation with your agent tells you far more than the headlines will.
📌 Sellers' guide to setting the right price for your property
"The base rate remains an important factor for buyers, but it is only one element of the wider affordability picture. Over the past year, lenders' criteria have improved considerably, with higher income multiples and a broader range of low-deposit products increasing the options available to first-time buyers in particular. As a result, today's decision is unlikely to materially alter affordability for many homebuyers. Deposit size, income, access to the right mortgage products and advice from a broker who can find the right solution for each person's circumstances will continue to play a far more significant role in what buyers are able to purchase."
James Stevenson
Managing Director of Sales at Foxtons
"Another decision to hold the base rate would reinforce the greater stability we've seen in the mortgage market over recent months. While many borrowers remain focused on whether rates may fall further, certainty can be just as valuable. A more predictable environment can make it easier to plan ahead, whether you're buying a home, remortgaging or reviewing your longer-term property goals. We continue to see strong competition between lenders, meaning borrowers should focus on finding the right solution for their circumstances rather than trying to predict the next rate move."
Richard Merrett
Managing Director of Alexander Hall
Read the full transcript
Richard: The Bank of England has once again held the base rate at 3.75%. This has been the rate since December, and the steadiness is good news.
James: Today, we're starting with first-time buyers, and we'll get to sellers and anyone coming off a fixed mortgage. I'm James Stevenson here with Richard Merrett, and we're back at The Brentford Project by Ballymore to talk it through.
James: So Richard, start me at the very beginning. What exactly is a first-time buyer?
Richard: So put simply, this is somebody who's never owned a home before. And this could be someone buying alone, buying with a partner, a friend, or possibly even using parental assistance. And obviously, they may have owned a property before, but they're helping out the first-time buyer.
James: So what does a first-time buyer mortgage look like right now, and how much can they afford to borrow?
Richard: So first and foremost, affordability's improved dramatically. Yes, rates are higher, but affordability is also about how much people can borrow. And there's been a very clear directive from government, supported by regulation, to enable more home ownership. And what that means is that virtually every lender has improved their affordability assessments. So whereas as little as 18 months ago, most first-time buyers would be able to borrow four and a half to five times salary, you've now got lenders offering as much as five and a half to even six times salary. And that makes a real difference in terms of the options that people have for the type of property or the location of the property that they can buy.
James: And what about deposit size? A lot of first-time buyers may think that in order to get access to some of these better rates, et cetera, they may need a 30%, 40% deposit. Is that the truth?
Richard: Yeah. So rates do get better the higher level of deposit that you have. However, again, we've seen lots and lots of positive improvements for people with lower deposits. So typically, I think for most, they would normally need a 5% deposit. However, a lot of lenders have come back with even lower deposit products. And you've got a couple of major lenders at the moment who are offering products with as little as £5,000 deposit. And we haven't seen criteria like that for a long, long time. In fact, there's a couple of big campaigns where they're saying, "We're taking mortgage criteria back to 1996," so the type of flexibility that we've not seen for 30 years. It's a real opportunity for first-time buyers to get the mortgage product and lending that they haven't been able to for a long time.
James: So what I'm hearing on this is first-time buyers, in spite of the direction that rates have been going, in spite of uncertainty or sentiment that's in the marketplace, actually, from a first-time buyer's perspective, these rates aren't materially changing whether they can afford to be a first-time buyer or not.
Richard: Yeah. So rates clearly are higher than they were three, four, five years ago. However, those borrowing options are far better. And we saw more criteria change and proposition changes from lenders in the last year than we have done in probably the last five before that. So lots and lots of positivity, and it's really about getting appropriate advice and being able to assess what options you have. And you then make a call, well, can what I get versus the rate that's available, does that make it worthwhile? Because for most, and I think the key question that most first-time buyers ask is, "Have I got enough deposit, and is it going to be cheaper than renting?" And in a lot of instances, it potentially could be.
Richard: So James, the Bank of England base rate, mortgage rates, affordability are only one part of the story. We're going into the autumn market. What would your message to sellers be?
James: If you're thinking of selling, I would say this is probably your best opportunity if you're wanting to make a move before the end of the year or certainly secure a buyer before the end of the year. Post-summer holidays, we always see our second market after spring, where you see an influx of buyers coming back into the market around the end of August, beginning of September, certainly moving into October. So if your intention is to sell before the end of the year or early next year, I would certainly start getting your plans moving forward now.
James: So my mortgage is coming to an end of term at the end of this year. Okay, who knows what's going to happen with interest rates between now and then? Fixed rate or tracker? What would your advice be?
Richard: So my advice would be take advice, because I think what's right for you is very dependent on your own circumstances, your own attitude towards risk. Trackers at the moment are slightly cheaper than fixed, but if you're going to be concerned then about any slight change in volatility, which has typified the last couple of years, having an impact, then that might not be the right option for you. If you're a bit more confident and comfortable with where you are, then actually having a cheaper option with flexibility might be more appropriate. Again, the key is not taking a one-size-fits-all approach, receiving advice, and working through not just your circumstances, but what your hopes, dreams, and aspirations are with someone who can advise you appropriately on those.
Richard: So looking at recent headlines, average London property prices are reported to be £545,000. What does that mean? Does that mean that is unattainable for many buyers?
James: Yeah, I think reading the headlines, it would seem that being able to afford £545,000 is something that a lot of people can't achieve. I would ignore average. I would ignore those headlines. This is when it's really important to be speaking to an estate agent. We have offices all over London and Surrey. They all have differing values in their local boroughs. We've got some average properties at £800,000 and a million pounds in certain offices, where in other offices, we've got properties as low as £200,000 to £250,000. So speaking to an estate agent, registering with an estate agent, and asking their advice on what affordability is and what average prices are in their local boroughs is much better than looking at average headline across the whole of London.
Richard: Base rate day changes a number on a page. Your deposit and your income are what decide what you can buy, and neither of those has necessarily moved this morning. Half an hour with an Alexander Hall adviser will tell you more than any headline or mortgage calculator.
James: And whether you're buying or selling, this is a market you can get something done in. We agree deals every week of the year, whatever the Bank has just announced. So ring your local Foxtons office today, and let's get started.
Source: This article draws on James Stevenson, Managing Director of Sales at Foxtons, and Richard Merrett, Managing Director of Alexander Hall, who between them lead the teams behind thousands of London sales and mortgage arrangements each year. It reflects the on-the-ground read from Foxtons branches and Alexander Hall advisers on how this rate decision is actually going to affect buyers and sellers. If you have any questions on this article, email us to ask a Foxtons expert.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
