UK Mortgage Market Outlook: Is the Rate-Cut Cycle Finally Here?
After two years of elevated borrowing costs, many UK homeowners and buyers are asking: have mortgage rates finally peaked?
Recent signals from the Bank of England suggest the answer might be “yes.” The Base Rate now stands at 4.0%, down from its 2023–24 highs, and lenders are beginning to pass these savings on to borrowers.
What’s driving the change
Falling inflation: UK inflation has eased to 2.3%, close to the BoE’s target.
Greater lender competition: Banks and building societies are cutting rates to win new customers.
Stable house prices: According to Nationwide, property prices have risen just 0.4% year-on-year, giving buyers more negotiating power.
What this means for you
The current market offers opportunities for both first-time buyers and existing homeowners looking to remortgage.
Fix rates while they’re falling: Locking into a 2- or 5-year fix now could offer stability before further BoE decisions.
Plan affordability carefully: Even as rates fall, lenders remain strict on affordability tests.
Stay informed: Rate changes can be swift a broker can monitor the market daily on your behalf.
Final thoughts
At Enlarge Consultancy, we monitor rate movements and lender product changes across the UK market. Whether you’re buying your first home or reviewing your existing deal, we can help you make an informed, confident decision.
Get in touch today to discuss your mortgage options and secure the right deal before the next market shift.
