February 2026 - What’s New in Mortgages This Month?
- Feb 28
- 3 min read
February has brought a noticeable shift in tone, rather than a shift in rates.
The market feels more structured and controlled, less reactive than in previous months. Lenders are not making sweeping or dramatic changes, but they are quietly refining their criteria and adjusting their risk appetite in a more measured way.
Here’s what stands out this month.
1. Gradual Rate Adjustments Rather Than Big Moves
Instead of sharp product withdrawals or sudden rate spikes, February has been characterised by modest, incremental pricing adjustments.
Some lenders have reduced selected fixed-rate products where funding conditions have allowed, while others have made subtle changes such as trimming maximum loan sizes at higher LTV bands.
This reflects a more controlled approach to risk management rather than any sign of market stress.
For borrowers, this highlights the importance of staying informed.
Product availability can change quickly, even if the overall market appears stable, so timing and awareness still play a key role.
2. Increased Scrutiny at 95% Loan-to-Value
High LTV lending remains accessible, but underwriting at these levels continues to be detailed and selective.
Key trends in February include:
A strong preference for clean, recent credit history
Detailed checks on the source of deposit
A more cautious stance on gifted deposits
Lenders are prioritising clarity and transparency. Even small inconsistencies in bank statements or supporting documents can lead to delays or additional questions.
At higher LTV levels, presentation of the case is just as important as the numbers themselves.
3. More Enquiries from First-Time Investors
There has been a noticeable increase in enquiries from first-time landlords looking to enter the buy-to-let market.
However, many lenders still favour applicants who:
Already own their own residential property
Have prior landlord experience
Demonstrate an understanding of rental regulations and compliance
That said, some specialist lenders may consider first-time buyer buy-to-let applications where income is strong and the deposit is substantial. As always, preparation and positioning are key to accessing these options.
4. Remortgaging Within Six Months Still Limited
We are continuing to see confusion around the so-called “six-month rule.”
While not a legal requirement, many lenders have policies that require a borrower to have owned a property for at least six months before they are eligible to remortgage.
There are exceptions, for example, in cases involving inheritance or bridging finance, but these are assessed on a case-by-case basis and are not guaranteed.
For borrowers considering short-term strategies, this is an important factor to plan for before completing a purchase.
5. Self-Employed Borrowers Asking Forward-Looking Questions
With the new tax year approaching, self-employed applicants are increasingly reviewing their financial position and planning ahead.
Common areas of focus include:
Latest year-end accounts
Salary and dividend structure
The impact of declared income on borrowing capacity
Different lenders have different approaches, some may consider one year’s figures, while others require two or three. Understanding how income is assessed can have a significant impact on what is achievable.
What This Means for Borrowers
If January was about stability, February is about selectivity.
Lenders remain open for business, but they are more cautious and detail-focused. Well-prepared applications are progressing smoothly, while weaker or less organised cases are more likely to face delays or challenges.
Across both months, the key themes remain consistent:
Clean credit matters
Documentation matters
Strategy matters
The mortgage market in early 2026 is not closed or restrictive, but it is disciplined.
For borrowers, that means outcomes are less about luck and more about structure, preparation, and the strength of the overall case.