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EXPERT ADVICE

The Edinburgh market is Any Government Initiative Schemes?
certainly better placed and We would hope to see help become available
more robust than almost all the from Government initiatives in 2026,
although the only firm scheme available at
rest of the UK and should still present is the Government LIFT scheme
remain in a positive trajectory which is a Shared Equity Scheme.
with price increases... What impact will recent events have
on the Edinburgh property market?
The Edinburgh market is certainly better
placed and more robust than almost all
the rest of the UK and should still remain
Interest rate changes in 2025 and
predictions for 2026 in a positive trajectory with price increases,
but we do expect things to be lower than
2025 has brought a positive trend, as the Bank recent years and slower in the early part of
of England rate has steadily been reducing. It’s the year, with activity increasing as the year
difficult to predict what will happen in 2026; progresses and further Bank of England base
What is going to happen in much will depend on inflation and its variables, rate reductions hopefully materialise.
including the recent Labour budget and the
the mortgage market in 2026? World Economy. However, the Bank of England ESPC Mortgages
expects the base rate to potentially reduce in
the early part of 2026, and then, all being well, At ESPC Mortgages, we remain optimistic
gradually decline beyond this period, hopefully for 2026. The mortgage market is still
David Lauder, Independent Mortgage Adviser with ESPC Mortgages, reaching closer to 3.25% by the end of the year. competitive and there are good solutions
makes some predictions for the 2026 mortgage and property market. to be found, tailored to the client’s needs.
The good news is that there’s also been some The team look forward to this continuing
positivity, with mortgage interest rates regularly throughout 2026 and to another successful
n the current financial climate, making As 2026 progresses, the hope and expectation receiving fixed-rate reductions on new products year of mortgage approvals.
predictions for the coming year is a is that buyer and seller confidence will return, rather than increases. However, interest rates are
Idifficult task. However, outlined below is many think the lull at the end of 2025 was due unlikely to return to the record low levels seen in We will work to help more people get their
activity that I expect to see in the mortgage to the November budget and caution against the early 2020s; it’s more likely they’ll settle at dream property and are available to help
and property market in 2026. any major changes that might have come a level below current rates, but probably higher existing and new clients review their existing
from this but with rates more favourable now than those we saw pre-Covid. Lenders’ typical mortgage arrangements to ensure they
than any other time in the last 24 months
Will 2026 be a seller’s or a buyer’s market pricing of rates is not always a direct correlation have the most suitable solutions during their
in Edinburgh and the surrounding there certainly does seem a bigger window of with the Bank of England base rate. mortgage journey.
opportunity for buyers, particularly first-time
areas? buyers, of getting a property much closer to
As 2025 draws to a close, The Bank of valuation. This will allow most of their hard-
England has cut interest rates from 4% to earned deposit to be used for the mortgage, as
ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer
3.75%. Mortgage interest rates are continuing opposed to the offers-over bid, which has been mortgage advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, contact the
to move in a positive direction, the market a regular feature of previous years. In principle, team on 0131 253 2920 or fsenquiries@espc.com
has slowly cooled, with less activity (as can this should mean that the buyer gets more
be expected at this time of year). This year, house for their money – along with the fact that
properties achieved 101.9% of their Home rates have become more favourable during The information contained in this article is provided in good faith. Whilst The initial consultation with an ESPC Mortgages adviser is free and
Report valuation, this matches the average 2025 and this is expected to continue in 2026 every care has been taken in the preparation of the information, no without obligation. Thereafter, ESPC Mortgages’ charges for mortgage
responsibility is accepted for any errors which, despite our precautions, advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
achieved in 2024. making monthly repayments more affordable. it may contain. BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A
MORTGAGE OR OTHER LOANS SECURED AGAINST IT.
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