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Advice for borrowers as inflation rises

ended 16. July 2025

Following this morning's inflation data, showing CPI rose to 3.6% in June, Newspage asked brokers what advice they have for borrowers and whether a rate cut next month is no longer guaranteed. Should people lock in ASAP in case (swap) rates start to rise again? Views below.

10 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
Inflation has crept up, and a Bank of England rate cut next month is far from guaranteed. Borrowers shouldn’t bank on it because markets are flip-flopping by the day, and swap rates, which influence fixed mortgage pricing, can turn fast. Right now, lender rates are falling, but that could reverse in a heartbeat. My advice? Don't dither, lock in a deal now. A good broker will monitor the market and switch you to a cheaper rate if one becomes available, but if rates suddenly spike, you're protected. In this environment, hesitation could cost you.
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Justin Moy
Managing Director at EHF Mortgages
With inflation still creeping upwards, it's unlikely we will see any cuts in the immediate future, and we may see some rate stagnation over the summer, as activity does slow down for the holiday period. If your current mortgage deal is due for renewal in 2025, act now. Now is a great time to grab a deal, as some of the lowest rates we have seen for a couple of years are now available for borrowers.
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Michelle Lawson
Director at Lawson Financial
You have to bring your A-game in the current mortgage market. Always look to lock something in sooner rather than later as a good broker will track the rates for you and notify you if a better rate is launched so it is a win-win outcome for the borrower. If you are nearing the end of your mortgage, don't leave it to the last minute to act. Rate cuts are never guaranteed, markets can change on a six-pence and when inflation starts creeping up like it currently is, that is usually a trigger for swap rates to increase, which feeds into higher fixed rates.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
There's nothing to lose by locking in a new mortgage deal as soon as possible, which can be up to six months before your existing deal ends. It doesn't commit you to going ahead with it, but means you can hedge against future rate increases between then and now, and also benefit from any rate reductions should they come. Working with a broker who will do this on your behalf and keep in the loop on the changing market is a must.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Inflation’s up, and that rate cut everyone was banking on? It might be off the table. If you’re hoping mortgage rates will drop, think again. This could send them the other way. Don’t hang around, lock in a deal now before lenders yank their best rates. Waiting could cost you, potentially dearly.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
This wasn’t the news Reeves wanted off the back of a good Mansion House speech that had such a positive tone. The reality that is a struggling Uk economy gave a reality check. Although only a slight increase in inflation, it will give the monetary policy committee pause for thought at their next meeting, and rates might stay higher for longer as a result. Making it easier for business could be a way to reduce prices, as businesses will have less costs to pass to the consumer; something for Reeves to consider before the autumn Budget.
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Scott Gallacher
Director at Rowley Turton
Today’s inflation news is mixed for borrowers. Higher inflation can help erode the real value of debts—but only if wages and earnings keep pace.

The bigger worry is that rising inflation makes a Bank of England rate cut next month look far less certain. Mortgage rates could stay higher for longer, and there’s even a risk they creep up again if markets get jittery.

If you wait around expecting rates to fall, you might be disappointed. If your fixed deal ends soon or you’re on a variable rate, talk to a broker now. It might be an idea to lock in a decent rate while you can, because it’s better to be safe than sorry.
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David Stirling
Independent Financial Adviser at Mint Wealth
Just when we thought the Bank of England was set to slash rates, this stubborn inflation data has thrown a spanner in the works. My message to borrowers is simple: grab your rate now. Don't wait around hoping for better deals and if cheaper rates pop up later, most lenders will let you switch. At at least you've got certainty and not left guessing. The bottom line is nobody has a crystal ball. This week's shock data proves that things can flip fast. Don't get caught out - act now.
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Dariusz Karpowicz
Director at Albion Financial Advice
Today's inflation bump has put that expected rate cut firmly on the back burner—don't hold your breath for August relief. Here's the reality: mortgage rates are currently at their most competitive levels in months, but this could flip overnight if swap rates surge on inflation fears.
My advice? Lock in now whilst the going's good. Most lenders honour your reserved rate if markets move against you, but crucially allow switches to better deals if rates fall. It's a no-brainer—you're protected from nasty surprises but can still benefit from any pleasant ones. In this game of musical chairs, hesitation costs money.
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Aaron Strutt
Product and Communications Director at Trinity Financial
We have seen inflation rise and fixed rates get even more competitively priced many times before. There have been lots of fixed rate price cuts over the last few weeks and I don’t think the price cuts will grind to a halt quite yet. There is a good choice of sub-4% rates.
The Bank of England’s MPC may well be having second thoughts about cutting the base rate early next month.