Following the PRA’s review of loan-to-income (LTI) flow limits, major lenders have moved toward 5.5x and 6x income multiples to support creditworthy borrowers

TwentyCi has found that the UK mortgage market is demonstrating remarkable resilience in the face of geopolitical uncertainty and sticky interest rates, according to its Q1 2026 Property & Homemover Report.

The latest data reveals a widening “Affordability Paradox”: while fixed rates have pushed back above the 5% mark, the monthly cost of servicing a mortgage remains significantly lower than renting in every single UK region. On average, UK homeowners are saving £493 per month compared to tenants, a gap that widens to around £1,000 per month in London.

As rental costs now consume a record 45.5% of median disposable income, the report highlights a critical shift in the lending landscape. Following the PRA’s review of loan-to-income (LTI) flow limits, major lenders, including Nationwide, Halifax, and Barclays, have moved toward 5.5x and 6x income multiples to support creditworthy borrowers.

The report notes that the lending industry is starting to follow the arithmetic. In southern regions where stock is tightest, these higher LTI products are moving from ‘niche’ to ‘necessary,’ with some lenders reporting a five-fold rise in applications at these higher multiples during the last year.

Meanwhile, the average time to exchange has risen to 134 days (a 7-day increase year-on-year). TwentyCi claims that this highlights the urgent need for the industry to adopt digital infrastructure and upfront property information to protect mortgage offers from expiring.

For buy-to-let lenders, the report offers a mixed picture. While rental stock availability is finally improving, up 18.8% year-on-year to a six-year high, affordability is hitting a ceiling. Let-agreed prices dropped by 2% in Q1, suggesting that while yields remain high, the era of double-digit rental growth may be tapering off as tenant incomes reach a breaking point.

Colin Bradshaw, CEO of TwentyCi, commented: Global disruption and fixed rates surging back above 5% have certainly acted as a cooling influence, particularly in London. However, we are not seeing a ‘frozen’ market.

He said: With supply up 5% and transactions tracking higher than both 2023 and 2024, the market is continuing to tick along nicely. The real story for 2026 is the sheer necessity of homeownership; when renting costs nearly 50% of take-home pay, the drive for mortgage approval remains the primary financial goal for UK households.