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Swaps tumble after dovish rate decision

ended 05. February 2026

As expected, Swap rates have gone south following the Bank of England's midday rate decision. One question: what will this mean for mortgage rates? And another question as swaps are so f*****g dull - would you rather have hands the length of your legs or legs the length of your hands, and why? Thanks to The Mortgage Geezer for the heads-up.

5 responses from the Newspage community

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Ben Perks
Managing Director at Orchard Financial Advisers
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The decision to hold may have been boring, but it’s provided the stability that the markets were looking for. The voting split looks really positive for the months ahead and Mr Baileys optimism have boosted confidence.
Hopefully these tumbling swaps lead to lower lender rates. Great news for borrowers.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Lenders may be swift to reverse their recent hikes as the market bets on further rate cuts after today's close announcement. If this continues, you could see high street lenders repricing downwards in the next few days. Great for new borrowers and remortgagors alike, especially given that over 1.8 million mortgages are maturing this year.
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Darryl Dhoffer
Founder at The Mortgage Geezer
For the 1.8 million homeowners facing renewals this year, the decline in swap rates offers a vital silver lining, potentially saving households thousands in annual interest. While the path may be gradual, the "price war" among big banks suggests that the era of peak rates is firmly behind us - watch this space, rates could fall.
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Richard Davidson
Mortgage Advisor at onlinemortgageadvisor.co.uk
With swap rates moving the longer-term trend still looks like it's heading down. Today's Bank of England rate hold was something of a nothingburger, but the markets have taken heart from the fact the vote was 5 for hold and 4 to reduce, suggesting another cut is coming.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
This is a positive end to a hard week in mortgages with rates rising across the board. The Bank of England seems confident that inflation will return to target in April and if that happens, another rate cut is now looking likely. Short of a reduction in rates, the overall dovish tone was about as good as it gets.