The mortgage market has been a busy few months. If you've been watching rates and wondering when to move (or whether to) here's what we're seeing on the ground.
Where Rates Sit Right Now
After a period of elevated fixed rates, lenders have been gradually repricing downwards as swap rates ease. Five-year fixed rates from mainstream lenders are now sitting in a range that, while not back to the historic lows of 2021, represents a meaningful improvement from the peaks of 2023.
Two-year fixed rates have followed a similar pattern - though the premium over five-year products has narrowed considerably, making the longer-term fix a more attractive proposition for many borrowers than it was twelve months ago.
Track rates remain competitive for those comfortable with short-term uncertainty, particularly if a Bank of England rate cut materialises in the second half of the year.
What This Means if You're Remortgaging
If your current fixed rate is ending in the next six months, now is a good time to review your options. Most lenders allow you to secure a rate three to six months in advance, so locking in now doesn't mean you have to complete now.
With product availability shifting quickly, the difference between acting now and waiting can be meaningful. A rate secured today can always be reviewed if something better comes to market before your completion date.
What This Means if You're Buying
For buyers, the improved rate environment has helped affordability calculations move back in the right direction. If you were stretching to make numbers work before, it is worth revisiting - particularly if you have a larger deposit or strong income profile.
Specialist lending has also seen an appetite increase. Competition between specialist lenders is health, which benefits borrowers who don't fit the standard mould.
Our View
Timing the market perfectly is impossible. What we'd say, as we also do, is this: make the decision that's right for your circumstances. Not the one dictated by what rates might do in six months.
The right mortgage for you isn't necessarily the lowest headline rate. It's the product that fits your income, your timeline, your plans.
If you're unsure where you stand, your first conversation with us is free and carries no obligation. We'll give you a clear picture of what's available and what make sense - and we won't push you in any direction that isn't right for you.
That's the FORTO way.