Mortgage Rates Could Drop Again - What Buyers Should Know

There’s some cautiously good news for buyers and homeowners this spring - several lenders are expected to reduce mortgage rates in the coming weeks following global economic uncertainty.

The shift is linked to changes in US trade policy, which have raised expectations that the Bank of England might lower interest rates more than originally forecast this year. While no one can say exactly how far rates will fall, it’s already influencing how lenders price their mortgage deals.

What’s happening with rates?

TSB has announced it will cut some of its two-year fixed rates by up to 0.25 percentage points this week, following similar moves from other lenders like MPowered Mortgages.

The Bank of England’s base rate currently sits at 4.5%. Until recently, most experts predicted two rate cuts this year - but expectations have now shifted to three, which would help support the wider economy.

This growing optimism has already started to influence mortgage pricing behind the scenes, particularly via “swap rates”, which lenders use to set fixed-term deals. If those rates continue to hold steady, brokers say we could soon see some mortgage products drop as low as 3.79%.

What does this mean if you're buying?

Lower rates may become available in the near future - but they won’t apply to everyone. The best rates often come with tighter lending criteria or larger deposit requirements, which may be less accessible to first-time buyers or those with smaller deposits.

Some of the more competitive deals may also carry higher arrangement fees, so the true cost over the term of the mortgage still needs careful comparison.

If you're getting close to making a move, it might be worth checking in with a mortgage advisor to review your options and hold a rate while the market settles.

What if you're remortgaging?

Many homeowners took out ultra-low fixed rates before interest rates started rising in 2021. As those deals expire - and with many set to renew in the next 12 to 24 months - borrowers may find themselves facing a jump in monthly payments.

If you're due to remortgage soon, the return of slightly lower rates could ease the transition, even if they’re still higher than what you’re used to.

Should you wait or act now?

It’s always tempting to try and time the market perfectly - but decisions around mortgages should be based on your own situation, not guesswork.

If you're buying and find a property you love, waiting for a better rate might mean missing the opportunity. Equally, if you're remortgaging, locking in a rate now could provide peace of mind, especially if you’re worried about monthly costs increasing.

Get advice before you commit

The key takeaway from this update is simple - change is happening, and some buyers and homeowners may benefit. But the mortgage market remains complex, and the best option isn't always the cheapest-looking rate.

At & Co, we can connect you with trusted mortgage advisors who will help you understand your options clearly, compare deals, and make sure you’re not caught out by unexpected fees or small print.

Need help navigating the mortgage market?

Whether you're buying your first home, moving, or remortgaging, get in touch and we’ll help you find someone who can guide you through it all - no pressure, just honest advice.

This article is for general information only and does not constitute financial advice. Please speak to a qualified mortgage advisor for guidance tailored to your personal circumstances.