The Bank of England chose to keep the base interest rate at 5.25% in November for the second time in a row following 14 consecutive rate increases. Unfortunately, interest rates – and therefore mortgage and savings rates – remain historically high.

However, last week both Nationwide and Virgin Money have introduced 4.99% and 4.97% mortgage products, with other lenders expected to follow suit in the coming weeks. This comes as Lloyds Bank, the nation’s largest mortgage lender, announces that it expects property prices to keep falling until 2025.

So, what does this mean for you and your mortgage?

Deciding whether to lock in a fixed deal now is completely up to you. Unfortunately, in this market, interest rates can go either way. There is lots of volatile situations going on right now which could spark a reduction or increase in the rates at the drop of a hat.

If you see a mortgage rate that you are happy with and consider fair, it might be best to lock it in now, especially if your current mortgage ends imminently. However, you may feel that the best fit for you is to hold out and see what the next few months have to offer.



Ultimately, it’s impossible for us to know exactly which way the rates will go in the future; however, we know this decrease comes due to the regaining of stability and normality in the UK. For now, there is lots of unpredictability involved which makes anticipating the direction of interest rates much more difficult than it was in 2018 or prior.

Yes, interest rates are predicted to – very gradually – decline, however that can all change at any given moment.