Firstly, we should point out that despite being a Guildford mortgage broker that’s been in business for almost two decades, we do not have access to any special knowledge that that would enable us to deliver accurate mortgage rate predictions.

It’s simply impossible for us – or for anyone, for that matter – to determine what comes next when it comes to mortgage rates. There are too many moving parts, none of which can be controlled.

Of course, the Bank of England (BoE) does have some control but even then, the levers they pull are only part of a larger economic puzzle.

But something is awry. And we felt that it’s worth highlighting.

The ups and downs of the mortgage world

At the beginning of 2024, the media reported on a mortgage war, which was seeing lenders take part in a race to the bottom as they cut their rates day after day.

Now, however, we’re seeing some lenders increase their mortgage rates.

As we covered in our What are swap rates? article, it isn’t just the BoE’s base rate that determines the price of mortgages. Swap rates play a major role, too. As it stands, they’re currently on the up – and when swap rates go up, so too do mortgage rates.

Don’t believe the hype

With talk of mortgage rate wars, falling inflation and possible base rate cuts, it’s easy – logical, even – to assume that mortgage rates will, too.

Yet this is the assumption of someone who isn’t aware of swap rates (or, if they are, they’re not aware of how much they influence mortgage rates).

We may be putting it on the line a little here, but our view is that mortgage rates are not going to continue to fall. In fact, mortgage rates have already started to creep up.

Avoid regret, act now

The feeling of ‘I wish I’d done that sooner’ is a powerful one. Nobody likes to feel regret. And the point at which you lock in the best mortgage deal can be a flash point; after all, timing is everything.

So, to avoid a situation whereby you feel a little regretful that you didn’t get a better mortgage deal, our recommendation is this: apply for a mortgage today, get an offer in writing, and if you don’t need to act on it now, sit on it for up to six months on the basis that that’s how long a mortgage offer lasts for.

Let’s say that in four months’ time, the base rate has fallen, swap rates have fallen and mortgage rates have fallen, too. If that’s the case, all we need to do is select a cheaper product for you or apply for a new mortgage with a different lender (if there is sufficient time to do so).

Putting it off on the assumption that mortgage rates will continue to fall could cost you in the long run – emotionally and financially.

Get a mortgage offer in place today by speaking with one of our Guildford mortgage advisers. Contact us on 01483 238280 or by e-mailing info@complete-mortgages.co.uk to find out how.