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"Some buyers are undoubtedly playing the waiting game for lower rates, but this is a risky strategy"

ended 02. May 2025

With mortgage rates falling by the day, the Bank of England expected to cut next week and major banks like Morgan Stanley predicting rates at 2.75% by mid 2026, brokers have said a growing number of buyers are holding out for lower rates — but have warned it's a risky strategy.

One said: “Lower rates could also spark a house price jump as pent-up demand floods back, wiping out any savings on mortgage costs.” Another added: “Rates have been turbulent over the past few years and whilst it feels like we could be coming out of the woods, we’re only one Starmer or Trump decision away from trouble.” But a third said “there is definitely a reluctance for speedy completions at the moment. To be honest, I don’t blame borrowers, why complete at a higher rate if you don’t need to?”

Views from brokers and financial services experts below.

9 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
Plenty of buyers — and remortgagers — are sitting on their hands, hoping rates will drop. But that’s a gamble. Rates can rise just as fast as they fall, and while the outlook suggests further cuts, nothing’s guaranteed. The mortgage market reacts to global events and money market movements — both of which can turn with little to no notice. Everyone wants cheaper borrowing, but rate drops are likely to be slow and steady, not sudden. Holding out for the ‘perfect deal’ could backfire. That’s why a good mortgage broker is worth their weight in gold — we don’t just secure today’s best rate, we keep monitoring the market and can often switch you to a better deal even after your application’s in.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
I’m finding buyers securing rates nice and early, knowing we can change the rates if they drop prior to completion. However, there is definitely a reluctance for speedy completions at the moment. To be honest, I don’t blame borrowers, why complete at a higher rate if you don’t need to?
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Sean Horton
Managing Director at Respect Mortgages
Some buyers are undoubtedly playing the waiting game for lower rates, but this is a risky strategy. We're definitely seeing people holding back, hoping the Bank of England will cut rates further, or perhaps waiting for this as a signal to make a move. Truth is, swap rates already factor in expected cuts. So a Bank of England rate cut might not move the needle too much. Lower rates could also spark a house price jump as pent-up demand floods back, wiping out any savings on mortgage costs. There are lenders that will allow a rate switch as long as the mortgage hasn't started. This could be a good back-up. My advice? If you've found the right property and can afford it now, proceed. The market doesn't wait for perfect conditions, and neither should you.
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Michelle Lawson
Director at Lawson Financial
Delaying applications is putting people at a disadvantage as most good mortgage brokers will monitor the market and apply any reduced rates as and when applicable to purchase, remortgage and product switches. Rates are reducing, which is why it is best to act to get the best worst-case scenario on the day and get the ball rolling. Otherwise borrowers could be setting themselves up to fail. All situations can change on a sixpence so be prepared.
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Ben Perks
Managing Director at Orchard Financial Advisers
There may be a few borrowers delaying buying in the hope of lower rates further down the line, but it’s a risky game. Rates have been turbulent over the past few years and whilst it feels like we could be coming out of the woods, we’re only one Starmer or Trump decision away from trouble. Most lenders will allow you to switch to better rates if they become available prior to completion. So, if you’re buying a property, use a broker, seek advice and crack on.
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Tony Redondo
Founder at Cosmos Currency Exchange
Bank of England data shows a slump in mortgage approvals, and with Morgan Stanley predicting rates at 2.75% by mid-2026, it’s not surprising that some buyers are delaying purchasing a property. However, it’s a risky strategy with Zoopla forecasting a 2%–2.5% rise in house prices in 2025. Waiting risks simply paying more for the same property, negating the advantage of potentially lower rates. Purchasers who failed to complete by March 2025 will already be hit with the new stamp duty costs. Also, with inflation at 2.6% and forecast to hit 3.7% in the coming months, there is no guarantee of rate cuts. They may even go up. My suggestion is to not try to time the market but buy if the property fits your needs, lock in a rate early via a broker, and consider a fixed-rate mortgage if stability is paramount for you.
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Harps Garcha
Director at Brooklyns Financial
With regular news of lenders cutting rates and forecasts suggesting several base rate reductions in 2025, it’s understandable that some borrowers are choosing to wait. However, markets can shift quickly, sometimes overnight due to a single person's actions. Relying too heavily on predictions can be risky. It’s sensible to speak with a mortgage adviser who can help you secure the best deal for your current needs. They will then monitor rates on your behalf, so if a better option becomes available before completion, you won’t miss out.
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Justin Moy
Managing Director at EHF Mortgages
With rates starting to fall, it's human nature to want to hold out for cheaper rates and lower payments. But rates are not going to drop 2% overnight. Rate cuts will be small and any saving will be minimal in the grander scheme of things compared to jeopardising the whole transaction. If it’s your dream home and it’s affordable, don’t delay.
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David Stirling
Independent Financial Adviser at Mint Wealth
Borrowers playing chicken with booking rates is a risky strategy. As we have seen recently, there is significant volatility in the markets and lenders change rates with very little warning. It's usually best to book a rate early that you know you can afford. Lenders are normally amenable to swapping if they reduce rates, assuming there is time before completion of the loan.