"The best time to plant a tree was 20 years ago. The second-best time is now."
Until as recently as 28 February, mortgage borrowers were seeing real benefits from the Bank of England's interest rate reductions, dropping from 5.25% in August 2024 to 3.75% today. Increased competition among lenders and evolving regulations had made remortgaging or purchasing a home more accessible and affordable.
However, recent developments in the Middle East have created renewed volatility in financial markets, triggering concerns over another potential inflation surge. Rising gas and oil prices, driven by supply chain disruptions, are expected to affect household costs and could offset the benefits from the Energy Price Cap reduction effective 1 April.
Market Consequences
This uncertainty is reflected in current financial market data, where the likelihood of a further Bank of England rate cut this month has fallen to just 20%, compared to around 80% last week. As conditions evolve quickly, UK lenders are withdrawing plans to reduce mortgage rates due to these renewed inflation concerns.
The latest projections from the Office for Budget Responsibility, announced alongside the Chancellor’s Spring Statement (3 March 2026), suggest that reaching the 2% inflation target may be less certain.
OBR official David Miles has already noted that higher energy prices will have a notable impact on inflation, describing this outlook as “unambiguously bad news.”
These inflationary pressures add to market uncertainty, making it difficult to predict the Bank of England’s future decisions and the potential effects on borrowing costs.
How Can Mortgage Borrowers Respond?
Lock in your rate early
If your current mortgage deal is ending soon, it’s wise to speak with a mortgage broker now to explore your next steps and secure a suitable new product.
Locking in a rate today can protect you if rates rise before your new deal completes. If rates fall, you often have the flexibility to reapply and obtain a more favourable offer, providing added peace of mind.
Mortgage offers typically remain valid for three to six months from many lenders unless your circumstances change, and you are not committed until you formally accept.
Even if your remortgage is not urgent, it may still be worth reviewing your situation: while early repayment charges can apply, particular circumstances or savings from a new deal can sometimes outweigh these costs, such as when sudden rate increases raise your monthly payments or if you need additional funds for home improvements.
Breaking News – Mortgage Rates Are Increasing
At the time of writing (5 March 2026), several mortgage lenders have announced that they will be increasing their rates, with further changes expected from others in response to evolving market conditions.
HSBC UK, for example, has confirmed that some of its mortgage rates, including products for first-time buyers, home movers, those remortgaging, and buy-to-let landlords, will rise from Friday. Coventry Building Society is also set to adjust its rates from Monday.
These decisions are largely influenced by recent increases in Swap Rates, which lenders use as a benchmark when pricing mortgage products. As Coventry Building Society has explained, movements in swap rates directly shape mortgage pricing. While these increases are necessary to reflect current market conditions, lenders remain committed to offering competitive options to customers. If you are considering a new mortgage or a remortgage, it is important to review your options early and seek personalised advice to ensure you secure a deal that suits your needs.
Mortgage Deals – The Second Best Time Is Now
In today’s unpredictable mortgage landscape, waiting could prove costly. While no one can predict future interest rate movements, taking proactive steps now can give you greater control and security.
Whether you are a first-time buyer, planning a move, or looking to remortgage, seeking early, professional advice from a trusted, whole-of-market broker like Cleerly is the key to protecting your financial interests.
Our team is here to provide clear guidance tailored to your circumstances, helping you secure the most appropriate mortgage to meet your needs. Your financial wellbeing and satisfaction are our top priorities. Don’t wait for the market to shift— contact Cleerly today to discuss your mortgage options with confidence.