Copy article

With the base rate expected to drop further, "the big question for borrowers right now is when to lock in"

ended 09. May 2025

Following yesterday's 0.25% reduction in the base rate to 4.25%, one broker, Bob Singh of Chess Mortgages, has said “the big question for borrowers right now is when to lock in”. Craig Fish of broker, Lodestone, agreed: “Mortgage rates are falling, and fast. But deciding when to lock into a longer-term fixed deal depends on your appetite for risk.” A third, Ben Perks of Orchard Financial Advisers, warned: "Lock in too early and miss savings to be had in years to come, but leave it too late and risk hitting the uphill." Meanwhile, Rob Peters of Simple Fast Mortgage said: “Fixing long-term at the bottom of the rate cycle sounds clever on paper, but real life isn’t that simple. While market chatter loves the drama of ‘locking in before the bounce', many borrowers would be tying themselves into higher rates than necessary if cuts continue, potentially paying over the odds for years, just for the illusion of security.” Views from brokers and lenders below.


 

8 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Craig Fish
Director at Lodestone Mortgages
Mortgage rates are falling, and fast. But deciding when to lock into a longer-term fixed deal depends on your appetite for risk. Most borrowers still crave the certainty of a fixed rate, but also want the flexibility to review. That’s why 2-year fixes and tracker deals are proving popular right now. The truth is, there’s no one-size-fits-all answer. The market is volatile and sentiment shifts fast. If you’re after peace of mind, locking in now could be the right move. But if you’re on the fence, a 2-year fix gives you breathing space, without betting the house.
Star Quote
Copy

Editor
Bob Singh
Founder at Chess Mortgages
The big question for borrowers right now is when to lock in. Sadly there is no definitive answer. As we enter a relatively low rate era — but one still some way off the rates we once had for so long — we must learn from the past when it comes to recommending how long to fix rates for. In a report to the Treasury, professor David Miles made several key recommendations that lenders, understandably in many respects, have been slow to adopt. In essence, the report recommended many structural and cultural changes to the mortgage market, most of which remain dormant. The changes included the use of longer term fixed rates, greater education around interest rate cycles, more information to borrowers on an annual basis to compare their pay rate with the current rates on offer, and ending product discrimination, making mortgage products available to all classes of borrower. It also flagged the idea of symmetric market to market ERC’s where the banks would pay the borrower if rates have risen.
Star Quote
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
When rates will bottom out is the biggest challenge facing brokers and borrowers alike at present. I'm yet to meet a broker with a crystal ball, so it’s an educated guess. Lock in too early and miss savings to be had in years to come, but leave it too late and risk hitting the uphill. Longer term fixes will start to feature more in conversations throughout this year, but ultimately it’s the borrower's decision based on their personal circumstances.
Star Quote
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
Fixing long-term at the bottom of the rate cycle sounds clever on paper, but real life isn’t that simple. While market chatter loves the drama of ‘locking in before the bounce', many borrowers would be tying themselves into higher rates than necessary if cuts continue, potentially paying over the odds for years, just for the illusion of security. Flexibility is key in today’s unpredictable world. A shorter fix—two or even three years—keeps clients nimble and ready to adapt. If rates fall further or their circumstances change, they’re not stuck. Let’s not forget the pain of early repayment charges on decade-long fixes. As always, it is the individual client's situation and needs and wants that dictates the 'correct' advice, not speculation on interest rate movements. Borrowers need tailored advice, not fear-based decisions. Long-term fixes will have their place but they’re not a one-size-fits-all solution.
Star Quote
Copy

Mark Eaton
COO at April Mortgages
As rates edge lower, more people will be wondering when the bottom of the rate cycle will be and may start to lock in for longer. But the key isn’t just timing the bottom, it’s recognising that the market we’re in today is far more volatile than the one we knew before the mini-Budget. We were lulled into a sense of security by years of ultra-low rates, but those days are gone. Now, markets can reprice overnight in response to global or political shocks. The appeal of longer-term fixed rates is ultimately about protecting your financial wellbeing from the next unexpected turn. A longer-term fix only works if it comes with the flexibility to adapt as life changes. Features like no early repayment charges and the ability to benefit from lower rates as your LTV improves are key. We’re likely to see more borrowers gravitating toward 5-, 10- or even 15-year fixes as rates settle. After the chaos triggered by the mini-Budget, for many borrowers it could be a case of "once bitten, twice shy".
Copy

Editor
Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This all depends on when rates bottom out. With the world and markets being ever more chaotic lately, it's risky advising borrowers to anticipate when this might be, especially as brokers won't know either. Right now, a two or three-year fix is probably the better option, given the uncertainty out there. All it takes is another unforced error, such as the calamitous Truss mini-Budget, or an unforeseen Black Swan event, to send markets spiralling and throw everyone's best-laid plans up into the air.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
Long-term fixed rates will be back on trend once the market stabilises and the Bank of England base rate is back to what is perceived to be the new normal. Ultimately, you need a crystal ball to know the bottom and even when it comes, it could be short-lived. A lot depends on an individual's life situation and attitude to risk.
Copy

Sean Horton
Managing Director at Respect Mortgages
Mortgage rates have already started moving downwards again after yesterday's 0.25% cut, with 2-year fixes now hovering around 3.72% and 5-year deals at 3.8%. The gap between them has narrowed considerably. While the bottom of the rate cycle isn't quite here yet, I'd start suggesting 5-year fixes when that difference shrinks below 0.1%. First-time buyers, currently enjoying sub-4% rates for the first time since last autumn, will probably want to grab these deals if they value payment certainty over potential future savings. And their window of opportunity will be influenced by their property chain. Risk appetite is key here. Those who've lived through the wild Truss-era swings might prefer the security of locking in, while others might fancy gambling on further cuts. Remember, markets can turn on a sixpence. Trump's tariffs, for example, have already pushed forecasters to predict faster rate cuts. The current consensus is that rates have a way to go yet.