Interest Rates: What’s Happening and What It Means for Your Mortgage
If you’ve been keeping an eye on the news, you’ll know there’s been a lot of talk about interest rates — when they’ll fall, whether they’ll rise again, and what that means for your mortgage.
It can be a confusing topic, so here’s a simple breakdown of what’s going on and how it could affect you.
First Things First — What *Are* Interest Rates?
Interest rates are set by the Bank of England, and they affect how much it costs to borrow money — including your mortgage.
So when the interest rate goes up, your repayments can get more expensive (if you’re on a variable or tracker rate). When they go down, repayments could be cheaper.
What’s Been Happening Recently?
After a long period of low interest rates, the Bank of England raised them multiple times to try to bring inflation down.
The good news? Inflation is now falling — and that’s why people are starting to ask:
“When will mortgage rates go down again?”
Some experts think we could see rate cuts later this year, but nothing’s guaranteed. The Bank wants to be confident inflation is under control before making any big moves.
What Does This Mean for My Mortgage?
That depends on the kind of mortgage you have:
If you’re on a fixed rate:
- Your payments stay the same until your deal ends
- When your deal ends, rates might be higher (or lower) than before
If you’re on a tracker or variable rate:
- Your monthly payments might have gone up recently
- They could go down if interest rates are cut — but it’s not certain when
If you’re looking to buy or remortgage:
- You might be wondering whether to wait for rates to drop, or lock in now
Should I Wait for Rates to Fall?
It’s a good question — and the answer is different for everyone.
Things to consider:
- If you’re ready now, a competitive fixed rate could still make sense
- If you wait, rates might drop — but they also might not
- Peace of mind matters — fixing now means certainty in your monthly payments
Our Advice?
Don’t guess. Talk to us. We’ll help you make the right decision based on your situation — not just what the headlines say.
Let’s Chat
Whether you’re buying your first home, remortgaging, or just want to explore your options, we’re here to help.
At The Mortgage Lodge, we make things simple, clear, and personal — no jargon, just honest advice.
Send us a message or give us a ring — we’re ready when you are.