As we enter the second half of the year, we find ourselves in a markedly different place from where we were at the start.
Rewind six months, there was a sense of relative calm across the UK property market. Confidence was improving as the threat of punitive property taxation receded after November’s Budget, while inflation was seemingly under control and the mortgage market had priced in a couple of base rate cuts for 2026, continuing the trend set in 2025, where the BBR dropped four times.
In March, of course, everything changed. The start of the conflict in the Middle East resulted in a rapid increase in gilt yields and, with great volatility in oil prices, there was the very real prospect of a sharp rise in inflation. The property market felt the shockwaves almost immediately as expectations for rate cuts were pushed back significantly. Many lenders repriced their mortgage products accordingly, and a greater degree of caution spread among property buyers.
Stability is vital in times like these
Set against this recent backdrop of increased geopolitical and economic turbulence, it has become more important for lenders to consider how they can best support brokers and borrowers. After all, the repricing or withdrawing of mortgage products creates major headaches for both groups, allowing further caution or, worse, inertia to set in.
This is why stability and consistency become such valued qualities in a lender at times like these – both things that we pride ourselves on at RAW.
Indeed, when reflecting on our record-breaking month in May 2026, stability emerged as one of the most important factors we saw driving demand for our products. We have ensured our products and rates have remained competitive during a period of volatility, and this is coupled with our unwavering focus on clear communications and a high-quality service for clients.
The value of optionality
Stability, though extremely valuable, is not always enough though. It is also important that lenders can provide optionality – or, to put it more plainly, lenders have to ensure there is sufficient choice for borrowers.
Optionality is always important, of course. Lenders have to offer a spread of products, rates and terms that allows brokers and borrowers to find the best fit for their (or their clients’) particular needs, circumstances and outlooks.
From different fixed-term options to different product features, RAW has embraced this challenge, introducing various improvements to our mortgage range throughout the past 12 months. We recapped several of them here, including a new product for UK residents, changes to our Automated Valuation Model (AVM), greater flexibility on overpayments, and removing the premium deduction applied when valuing new-build homes.
This exemplifies the careful balancing act we are focused on at RAW: ensuring there is stability and consistency in our offering so that clients know there are no sudden about-turns to contend with, while also ensuring there is a breadth of options available to clients by making iterative improvements to our product range.
Our strong performance in H1 2026, including the record-breaking May, suggest we’re striking the right balance.
But there is no room for complacency as we head through the second half of the year. And we’re always keen to hear from brokers about what they’re seeing on the ground and where there may be opportunities to make lending easier. So, if there’s something your clients need, or an area where we could add more value, please get in touch.