Ahead of the Bank of England’s base rate decision tomorrow, Aaron Shinwell, Chief Lending Officer at Nottingham Building Society, says mortgage rates have already passed their peak, creating renewed opportunities for homebuyers and those coming up to remortgage.
Aaron Shinwell, Chief Lending Officer at Nottingham Building Society, said:
“Mortgage rates are now at their lowest levels since 2022, creating real opportunities for anyone looking to buy or remortgage. Although a rate cut this month looks unlikely, rates have already passed their peak and could gradually edge down over time, which is good news for the 1.8 million borrowers expected to remortgage this year and first-time buyers finding a more realistic route onto the property ladder.”
For those still saving towards a deposit, a hold on the base rate provides some stability. Savings rates remain competitive for now, giving people a chance to build their deposit while keeping a close eye on how both savings and mortgage rates change. As rates do ease, that combination of a stronger deposit and lower borrowing costs could make a meaningful difference to affordability.
Small shifts in expectations around future base rate reductions are already influencing mortgage pricing, and we anticipate modest downward movements in rates through 2026, which should help support demand.
Getting the right mortgage isn’t just about chasing the lowest headline rate. Term length, overpayment flexibility and long-term affordability all matter. Engaging early with a broker can make a real difference , whether that’s securing a mortgage offer now while keeping the flexibility to switch if better options appear before completion.”
