When Will Mortgage Rates Go Down?

Property owners the length and breadth of the UK are asking, ‘When will mortgage rates go down?’ It’s not an easy question to answer, considering the current monetary climate.

It’s no secret that the financial world has been somewhat turbulent over the last few years. With increasing interest rates, a worldwide pandemic and a cost of living crisis to contend with, there’s no wonder that homeowners are desperate to see mortgage rates go down.

So will mortgage rates go down? If so then when will mortgage rates go down?

Who Determines Interest Rates?

At the top of the financial ladder is the Bank of England. Interest rates are reviewed by the Bank’s Monetary Policy Committee, generally every six weeks. Following this report, and heavily influenced by its findings, mortgage lenders will set their interest rates accordingly. Lender’s are not only influenced by the Bank Base rate however, but also the ‘swap rates’ (rates at which they can borrow money, governed partly by the money markets future projections for interest rates) as well as the lender’s own appetite to lend, and the volume of business they want to attract. So if you’re asking, ‘when will mortgage rates go down?’,  the answer is determined not only by the Bank of England, and your mortgage lender, but other influencers too.

What Influences Whether Mortgage Rates Go Down?

There are some things you can do to help yourself when it comes to securing a favourable mortgage deal. The size of your deposit, for example, can influence the deals you are offered. Your credit score, which will take into account your borrowing history, frequency of changes of address and other financial commitments will also have a bearing on the mortgage you are eligible for. 

Outside of these parameters, the Bank of England uses inflation levels and other factors to calculate and review interest rates.

What’s The Current Situation With Mortgage Rates?

Since December 2021 there have been 14 consecutive increases in interest rates in the UK. Predictions are now indicating that falling inflation could result in mortgage rates going down. For those desperately seeking an answer to their question of, ‘when will mortgage rates go down?’ The hope is that throughout 2024 rates are predicted to fall to some extent, possibly extending into gradual reductions in 2025 too.

Some lenders are already starting to cut their rates as a result of easing in the market rates in anticipation of this. In the meantime, The Mortgage Charter has meant many lenders are offering interest only payments for up to 6 months, in a bid to take the pressure off for a while. Also extended mortgage terms are a possibility too.

The Impact On The Economy

Most believe that it is in the best interest of the country for the Bank of England to reduce interest rates. Higher rates have put many homeowners in a difficult financial position as they struggle to cover ever increasing monthly payments. This has led to a reduction in spending elsewhere, which is not good for the economic growth of the country. After all, no-one wants another recession. 

On a positive note, the Bank of England is expecting inflation to fall to 4.5% by the end of 2023, and to continue this pattern throughout 2024. 

If you have concerns about your current mortgage payments, or you want advice on how to get the best mortgage deal, contact one of the advisors at Stuart Brown Mortgage Services. They will be happy to discuss your options and offer sound advice to help you make the best financial decisions. 


Here at Stuart Brown Mortgage Services, we offer expert mortgage broker advice to help those applying for their first mortgage, repaying a current mortgage, or finding a new deal so the process goes as smoothly as possible. We can also help with buy to let mortgages and give advice on insurance & protection.

We can help you to accurately calculate your monthly mortgage costs, navigate legal costs and help you understand how home valuations work when you’re trying to remortgage. With a combined 64 years of experience, there’s nothing we haven’t seen before and can’t help you with. 

Please don’t hesitate to contact us if you have any enquiries about our services, or just need some advice!


email: advice@sbms-online.co.uk

Telephone 01525 877650 or 01442 252040

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up the repayments on your mortgage.

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