Mortgage rates are continuing to dip, despite wider market uncertainty about the upcoming UK Budget later this month, according to financial advice firm Continuum.
Around 446,000 fixed rate mortgage deals are set to end in the final quarter of 2025, according to data from UK Finance.
Given the considerable press speculation ahead of the Chancellor’s latest Budget announcement later this month, many advisers with clients coming towards the end of a fixed rate mortgage may be receiving calls asking about the potential impact of the announcements on mortgage rates.
Anthony Harris, Independent Financial Adviser at Continuum, said: “There are nearly a million homeowners whose mortgage deals are due to end in the next six months. If your clients are amongst them, it is understandable why they may have concerns about what rates may do following the Budget announcement.
“We have seen nothing that indicates that fixed mortgage rates will rise as a result of the Budget. Lenders look much further ahead than just a few weeks when setting their rates, and therefore the most likely changes from the Budget have already been priced in.
“We have actually seen a number of lenders reducing their rates over the past week or two. Earlier this week HSBC reduced its fixed term mortgage rates for intermediaries across the board for new buyers, remortgages and but to let mortgages.
“At Continuum we have been advising the majority of our clients to hold steady rather than making a knee-jerk decision in a rush ahead of the Budget.
For those advisers whose clients still have concerns about mortgage rates following the Budget, despite reassurance, it may be worth considering reserving a new rate.
Anthony added:“It is a little-known fact that homeowners can protect themselves from rate rises by reserving a new rate up to six months in advance. Arranging a deal does not mean committing to it, if rates improve in the meantime homeowners should still be able to move onto a lower rate so will not be any worse off.”
