A market finding its rhythm 
After the volatility of recent years, 2025 has brought a more settled tone to mortgage rates. According to Forbes, while rates are no longer at historic lows, the market is adjusting to a new normal, one that rewards preparation and flexibility from borrowers. 

What is driving today’s rates? 

Interest rates are influenced by several factors, including inflation, economic forecasts and Bank of England policy. Steady inflation and moderate growth have led to a more predictable lending environment. This means borrowers are less likely to face sudden changes, and more able to plan with clarity. 

Fixed or variable - what’s right for you? 
Many buyers continue to favour fixed-rate products for their certainty, especially over two or five-year terms. However, some are exploring variable or tracker mortgages in the hope that base rates may ease in the coming year. The best option depends on individual circumstances, including income stability, future plans and risk appetite. 

Remortgaging remains a smart move 
With many fixed-rate deals from the low-interest era now expiring, remortgaging has become a priority for homeowners. Reviewing your mortgage well ahead of your current deal ending can save money and reduce stress. Brokers report that early preparation often results in better terms and smoother transitions. 

First-time buyers: stay realistic, not discouraged 
Mortgage rates are only one part of the affordability picture. Lenders remain keen to support first-time buyers with tailored products, including lower deposit requirements and flexible income assessments. While monthly costs may be higher than a few years ago, careful budgeting and guidance can still lead to homeownership. 

Advice is your best asset 
In a market where headlines can shift weekly, expert advice makes a difference. Understanding how different rates affect your repayments and long-term financial plans is key to making informed decisions. A proactive approach today could mean greater stability tomorrow. 

 
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