Wondering if mortgage rates will go down in 2025? In this post, Will Sharman breaks down the latest interest rate trends, expert predictions, and what it all means for your mortgage. Learn whether now is the time to remortgage, fix your rate, or switch lenders — plus how Mortgage Broker Near Me can help you save.
Apr 11, 2025
Mortgage rates have been the talk of the town for the past few years, especially after the chaos caused by inflation, rising interest rates, and global economic changes. If you're wondering "will mortgages go down in 2025 or 2026?" — you're not alone. The good news? There are signs that things could be moving in the right direction. Here's everything you need to know about the current state of mortgage rates in the UK and what to do next.
Interest rates are what you pay to borrow money. The Bank of England sets the base rate, and this affects everything — from your mortgage to your savings account.
When the base rate goes up, borrowing becomes more expensive. When it goes down, loans like mortgages tend to get cheaper. The Bank adjusts the rate to control inflation (aka rising prices). The target is 2%, but inflation has been tricky to tame.
As of April 2025, the Bank of England’s base rate is 4.5%, down from its 2023 peak of 5.25%. Analysts originally expected two rate cuts this year, but thanks to global uncertainty (like Trump’s US tariffs), they now think there could be four rate cuts, potentially dropping the base rate to 3.5%.
Yes, they probably will — and some already have.
Mortgage rates are influenced by the base rate but also by what lenders expect to happen. Many have already started reducing rates in anticipation of future cuts.
But these deals often go quickly — and not everyone qualifies, especially first-time buyers.
As of April 2025, the Bank of England’s base rate is 4.5%, down from its 2023 peak of 5.25%.
You could benefit from lower rates if you act quickly, but waiting too long might mean missing out.
You're safe from rises for now — but start looking 6 months before your deal ends.
Your payments drop when the base rate drops. Great news if you're on one now.
You might see lower payments — but only if your lender passes on the rate cuts.
Switching off SVR could save you hundreds per month. Get a remortgage quote ASAP.
Absolutely — especially if your deal ends in the next 6 months.
More people are choosing 2-year fixes, hoping rates will drop more soon. But 5-year fixes offer stability. The best choice depends on your personal situation.
Fixed deals are cheaper right now, but if rates drop a lot, trackers might win long-term.
Long-term forecasts from the Office for Budget Responsibility say average mortgage rates will peak around 4.7% by 2028, then stay steady to 2030. So while we may not go back to ultra-low rates, they are expected to stay below 2023 highs.
Yes, rates are already falling slightly, and further cuts are expected. But inflation and global events could slow things down.
If inflation stays low, rates may continue to drop slightly in 2026, but probably not drastically.
If your deal ends soon, don’t wait. Lock in a rate now and switch later if something better comes up.
Fixed deals offer lower rates today. Trackers could be better if base rates fall fast. It depends on how much risk you're comfortable with.
Yes! A broker can help you find exclusive deals, avoid bad terms, and guide you through tricky paperwork.
At Mortgage Broker Near Me, we:
Whether you're a first-time buyer, home mover, or remortgaging, our friendly team is here to support you every step of the way.
Whether you're a first-time buyer, home mover, or remortgaging, our friendly team is here to support you every step of the way.
Rates are expected to fall — but they haven’t crashed. If your current mortgage ends soon, don’t wait and risk rolling onto a higher SVR. Lock in a deal now, then keep your options open.
And remember, Mortgage Broker Near Me is here to help you make the smart move.
Ready to get started? Contact us today for free expert mortgage advice.
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Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
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