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Borrowers in limbo

ended 27. April 2026

Ahead of the BoE rate decision, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, has said “borrowers have been left in limbo as it is difficult to know whether they should rush to lock into a fixed deal or wait and see if lenders make more sizeable cuts”. Equally, mortgage rates could rise again, potentially. What's the best strategy to overcome this “limbo”? Or is it just pure luck? Are you seeing borrowers really struggle with the decision as to whether to lock in at current levels? And are more people going for ERC-free trackers to have their cake and eat it (and are you advising that)?

3 responses from the Newspage community

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Editor
Craig Fish
Director at Lodestone Mortgages
The 'limbo' framing is understandable, but I'd push back slightly on the idea that borrowers are helpless. The honest answer is that nobody knows where rates go from here, not lenders, not economists, not the Bank of England. So the right strategy isn't about predicting the market, it's about understanding your own circumstances. If certainty matters to you, your job, your family, your finances, fix now and sleep at night. If you have genuine flexibility and can absorb a rate move upward, then yes, an ERC-free tracker gives you optionality without penalty. We are seeing more borrowers asking about trackers, and in some cases we're recommending them. But it's not a one-size answer. Luck doesn't come into it if you make the decision that fits your life.
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Shaun Sturgess
Director at Sturgess Mortgage Solutions
Technically speaking, borrowers are always in limbo, as each time they make a decision whether to lock into a fixed rate or go for a tracker, the future trajectory of mortgage rates could make their decision the right one or, in theory, the wrong one. But that's the benefit of hindsight and none of us have a crystal ball. The right decision for any borrower ultimately is the one they make that meets their risk profile and unique circumstances at that particular time, which is a decision a good broker will help them arrive at.
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Omer Mehmet
Managing Director at Trinity Finance
It's a difficult time for borrowers, without a doubt. Many will be looking at the rate cuts of the past week or so and wondering whether they'll continue. If you're in the early stages of a house purchase or are not due to remortgage for another few months or so, the good news is that you can lock into a rate now and, if rates come down materially before the transaction takes place, potentially switch to a lower rate whether with the same or another lender. Some people are also considering an ERC-free tracker, as that way they can get a slightly cheaper rate today and then lock into a fixed rate if it looks like rates will go up.