Will Mortgage Rates Go Down This Year?
Many of our clients have been asking us will mortgage rates go down this year? If you own a home or are thinking of buying in 2026, you may be watching the market closely after a prolonged period of higher borrowing costs.
While we don’t have a crystal ball, current economic indicators suggest there may be further opportunities for rates to ease during 2026. Below, we explore what’s driving mortgage pricing, what the experts are saying, and what this could mean for you.
What is happening with mortgage rates right now?
Mortgage rates are closely linked to the Bank of England’s base rate. This influences how much it costs lenders to borrow money. In late 2025, the Bank of England began cutting the base rate as inflation started to ease.
Although base rate changes don’t automatically lead to immediate mortgage rate reductions, lenders often adjust pricing in anticipation of future cuts, particularly for fixed-rate products.
This is why many borrowers have already seen mortgage rates fall slightly from their recent peaks.
The impact of any rate changes will also depend on the type of mortgage you have. If you’re on a fixed-rate mortgage, your rate will stay the same until the end of your fixed term. If you’re on a tracker mortgage, your rate typically moves in line with the Bank of England base rate, meaning changes may be reflected in your monthly payments, in line with your mortgage terms.
Why Mortgage Rates Could Go Down This Year
There are several reasons why mortgage rates may continue to fall this year:
- Inflation is easing, reducing pressure on interest rates
- Base rate cuts are expected to continue gradually
- Lenders are competing more aggressively for business
- Fixed-rate deals often price in future expectations early
Recent coverage from the BBC has highlighted how improving inflation data has encouraged lenders to reassess their mortgage pricing, with several major banks already reducing rates in early 2026.
Why Mortgage Rates Might Not Fall Dramatically
It’s important to balance optimism with realism.
Mortgage rates are unlikely to return quickly to the ultra-low levels seen in the years before 2022. That’s because:
- Lenders already factor expected rate cuts into fixed-rate pricing
- Economic uncertainty can slow or pause reductions
- Global events can still affect financial markets
As a result, mortgage rates may fall gradually rather than sharply, with periods of stability between reductions.
Expert Insight from Your Mortgage Expert
According to Adam Nanson, Managing Director at Your Mortgage Expert, timing and preparation remain crucial:
“Borrowers should be cautiously optimistic this year. We work closely with both high street and specialist lenders, which means we’re constantly monitoring changes in mortgage rates and lending criteria as they happen. Since the start of the year, we’ve already seen a number of rate reductions across the market, alongside important product and criteria changes. These shifts can create opportunities for borrowers, but they don’t always last long – so staying informed and taking advice early can make a real difference.”
This approach allows borrowers to act quickly if a competitive rate becomes available – rather than waiting and missing an opportunity.
What This Means for Homeowners and Buyers
If You’re Remortgaging This Year
If your fixed rate ends in 2026, it may be worth reviewing your options well in advance. Many lenders allow new rates to be secured up to six months ahead, giving you flexibility if rates improve later.
If You’re Buying a Home
Falling mortgage rates could improve affordability, but competition for good properties may increase at the same time. Securing a mortgage agreement early can give you confidence when making an offer.
Guide to First Time Buyer Mortgages
Talk to Your Mortgage Expert
Whether you’re remortgaging, buying your next home, or simply want to understand your options, our team is here to help.
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