Cheapest mortgage fixes drop to 3.5% – brokers answer if you should lock in now or wait

Interest-Rates.Info - UK Mortgage & Property News - Birmingham Money - West Bromwich Money - Mortgage Brokers

Major lenders including HSBC, Nationwide and Halifax have kicked off the new year by reducing rates on their fixed mortgage deals to as low as 3.5%. It’s good news for the 1.8 million people with existing fixes due to end in 2026. But where will rates go from here – and should you fix your mortgage now or wait?

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Will UK Mortgages Get Cheaper in 2025?

Interest-Rates.Info - UK Mortgage & Property News - Birmingham Money - West Bromwich Money - Mortgage Brokers

Earlier this week we published an outlook for UK house prices. Now we look at mortgages, a key driver of housing market activity. Without the £1.7 trillion of mortgage finance, the whole ecosystem can’t function effectively. And that financing suddenly got more expensive in 2022 after a rapid increase in interest rates. While mortgage rates started to fall in 2024, there are some risks to the narrative that affordability will improve significantly this year. A surprise curveball has come from the UK government bond market in recent weeks.

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