The 2025 Mortgage Market: Is Now the Right Time to Fix Your Rate?

The UK mortgage market continues to evolve, and with interest rates still a major talking point, many homeowners and buyers are asking: Should I fix my mortgage now or wait for better rates?

Where Are Mortgage Rates in 2025?

Over the past couple of years, we’ve seen rapid rate hikes as the Bank of England battled inflation, pushing the base rate to a high of 5.25% in 2023. Now, in 2025, inflation has cooled, and lenders are gradually reducing fixed-rate mortgage deals. Some are already dipping below 4.5%, a significant improvement from last year.

However, while rate cuts may continue, there’s still uncertainty about how fast and how far they will go.

Should You Fix or Wait?

✅ Fixing Now Might Be Right If:

• You want certainty over your monthly payments and prefer to lock in a rate while they’re at multi-month lows.
• Your remortgage is due soon, and moving onto a lender’s Standard Variable Rate (SVR) could be much more expensive.
• You need stability for the next few years and don’t want to gamble on potential rate movements.

⏳ Waiting Might Be Worth It If:

• You believe rates will fall significantly in the coming months and are comfortable with short-term fluctuations.
• You are on a tracker or discount rate mortgage, which could get cheaper if the base rate drops.
• You have flexibility and don’t mind reassessing later in the year.

Alternative Options in 2025

• Two-Year Fixed Deals: If you’re unsure about locking in for a long period, a shorter fix allows you to reassess rates sooner.
• Tracker Mortgages: These follow the Bank of England base rate, meaning your payments could drop if rates are cut.
• Offset Mortgages: Useful if you have savings, as they help reduce the interest you pay on your mortgage.

Final Thoughts

The best decision depends on your circumstances. If stability is your priority, now is a good time to secure a fixed rate, especially as rates have come down from their 2023 peak. But if you’re comfortable taking a calculated risk, keeping an eye on further reductions could pay off.

Need help deciding? As a mortgage advisor, I can help you navigate the latest deals and find the best solution for your situation. Get in touch today!