Secure Your Mortgage Before Rates Rise Again – Why Acting Now Could Save You Thousands

Secure Your Mortgage Before Rates Rise Again – Why Acting Now Could Save You Thousands

With the Bank of England expected to hold interest rates until 2026, locking in your mortgage now could help you avoid higher repayments later. Discover how Mortgage One can help you secure a competitive rate before the next rise.

A Critical Moment For Homeowners And Buyers

With inflation proving more persistent than expected and the Bank of England unlikely to cut rates before 2026, UK homeowners and buyers face a defining financial moment. Every rate decision can directly influence monthly mortgage costs — and the difference between acting now or waiting could amount to thousands of pounds over the term of your loan.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

As markets brace for another year of economic uncertainty, understanding what lies ahead could make all the difference in your next mortgage decision.

The Current Economic Picture: Rates Hold Steady Amid Inflation Pressures

The Bank of England’s base rate currently stands at 4%, following a modest reduction from 4.25% earlier this year. While that initial cut offered some optimism, the Bank has since opted for stability, citing ongoing inflation and wage growth concerns.

Forecasts suggest inflation will hover near 4% before gradually easing toward the 2% target — but not fast enough to trigger early rate cuts.

For borrowers, this means one thing: mortgage rates are expected to remain firm for the foreseeable future.

Market Expectations: Rate Cuts Pushed Back To 2026

Recent market data paints a cautious picture. Analysts now widely expect no meaningful rate reductions until 2026, pushing back earlier hopes for late-2025 relief.

Some economists anticipate the base rate could remain at 4% well into next year, while others suggest only a minor adjustment — perhaps to 3.75% — if inflation cools faster than expected.

Major financial institutions such as HSBC forecast the first cuts around April 2026, while others predict stability for at least 18 months. The consensus? Waiting for cheaper borrowing conditions could be a long wait.

Mortgage Rates Today: What Borrowers Are Facing

Mortgage pricing continues to reflect the Bank’s cautious stance. Current averages show:

• 2-year fixed rates: around 4.98%
• 5-year fixed rates: near 5.02%

While tracker mortgage holders may see quicker relief once cuts begin, most fixed-rate borrowers will find that delaying in the hope of a significant drop could prove costly. Even a small rate increase can add thousands in repayments across a 25-year term.

Why Acting Now Could Be The Smartest Move

In a market where timing is everything, locking in a fixed rate before the next upward shift could provide valuable long-term protection. Once the Bank signals any future policy changes, lenders typically reprice their deals early, meaning the most competitive offers often vanish overnight.

Taking action today can help you:

• Secure stability against future rate hikes
• Lock in predictable monthly payments
• Protect your affordability as costs continue to rise

This is especially important for first-time buyers and homeowners approaching the end of a fixed term, where even small rate shifts can impact affordability assessments and product availability.

Expert Support From Mortgage One

At Mortgage One, we monitor rate movements daily to help clients make confident, informed decisions. Whether you’re buying your first home, remortgaging, or looking to fix your rate for longer, we can guide you through the latest products and identify the most suitable mortgage options to work with your financial goals.

Our mission is simple — to help you secure the right mortgage at the right time with clarity and confidence.

Take Control Before The Market Moves Again

The message from economists and lenders is clear: interest rates may stay higher for longer. Acting now could save you thousands over the lifetime of your mortgage.

Don’t wait for the market to dictate your next move. Contact Mortgage One today to discuss your options, review the latest deals, and secure your mortgage before rates rise again.

FAQs

Will Mortgage Rates Go Down Soon?
Current forecasts from the Bank of England and major economists suggest that rate cuts are unlikely until 2026. While rates could fluctuate slightly in the short term, significant drops are not expected. Speaking to Mortgage One can help you understand what this means for your personal circumstances and whether now is the right time to secure a fixed deal.

Is Now A Good Time To Lock In A Mortgage Rate?
With the base rate expected to stay at around 4% through 2025, acting sooner could help you secure a more predictable rate. Even a small change in rates can affect monthly payments over the term of a mortgage. Mortgage One can guide you through the latest deals available and help you decide the best course of action.

How Do Interest Rate Changes Affect My Mortgage?
If you’re on a fixed-rate mortgage, your payments stay the same until your deal ends. For those on tracker or variable rates, payments may rise or fall in line with the Bank of England’s base rate. The team at Mortgage One can explain how upcoming rate decisions may impact your situation.

What Happens If I Wait Until 2026 To Buy Or Remortgage?
Waiting could mean facing higher borrowing costs if rates remain elevated or if lenders tighten their affordability criteria. Acting now gives you more control and flexibility. Mortgage One can review your options and help you prepare for any future rate shifts.

Can I Change My Mortgage Deal Before It Ends?
Yes, in many cases you can remortgage before your current deal expires, although early repayment charges may apply. It’s important to weigh up the potential savings versus any fees. Mortgage One can calculate whether switching early could benefit you.

How Can Mortgage One Help Me?
Mortgage One is a trusted UK mortgage broker offering tailored advice for first-time buyers, home movers, and remortgagers. Their team compares a wide range of lenders to find competitive deals suited to your needs — always focused on your best interests, not the banks.