Why this matters

After years of higher interest rates following the 2021–22 cycle, many borrowers are coming off older fixed deals and facing much higher monthly payments. Seeing the cheapest new fixes fall below 3.7% is the first major shift in new mortgage pricing for some time and has prompted fresh debate about whether it’s a good time to fix or wait.

What the article shows about current rates

According to the article:

  • The lowest two-year fixed rates are around 3.5% for homebuyers.
  • Five-year fixes have also eased, with some starting from around 3.69%.
  • Remortgage deals have similarly improved, with examples from about 3.61% (two-year) and 3.74% (five-year) depending on loan-to-value.
  • The number of available deals remains high, with over 7,000 mortgage products listed — the most since 2007, reflecting heightened lender competition.

Why rates are moving

Mortgage pricing isn’t set by the Bank of England base rate alone — it also reflects market expectations and the costs lenders face in borrowing and hedging long-term funding. Brokers quoted in the article point out that:

  • Many lenders are already cutting fixed rates as swap rates and market pricing have eased.
  • Some brokers expect further modest base rate cuts later in 2026, which could feed through gradually into even cheaper deals.

These changes have come as the Bank of England’s base rate stands at 3.75% after a cut in December 2025, and markets currently anticipate further rate changes this year.

Fix now vs wait — what brokers say

Brokers featured in the source highlight that:

  • Further falls are possible, but the biggest improvements have already been priced into many deals.
  • Some brokers believe it’s “wishful thinking” to expect significantly lower rates unless market conditions change dramatically.

In other words: while rates have moved down, they may not drop sharply overnight, and much of the expected future movement is already reflected in current pricing.

What this means for you

If you’re in the market for a mortgage or remortgage:

  • The cheapest headline rates may be within reach if you have a strong deposit and good credit profile.
  • But headline rates are not guaranteed offers — actual deals depend on your affordability, loan size and lender criteria.
  • Deciding whether to fix now or wait should consider both payment stability and personal tolerance for future rate changes.

This article is general information, not personal advice. What’s appropriate for you depends on your individual circumstances.

Want to explore current deals?

You can request mortgage quotes to see what rates lenders might offer you now based on your profile.

(Getting quotes helps you explore options — it isn’t financial advice or a recommendation.)