Yesterday’s announcement of a 0.25% interest rate cut by the Bank of England is a welcome and encouraging moment for the UK property and mortgage market.
While this move was widely expected, it still has the potential to provide a much-needed end-of-year boost for buyers, homeowners and lenders alike. From my perspective, we’re already seeing green shoots of confidence returning to the market, and this decision adds to the growing sense of optimism as we look ahead to the new year.
That said, it’s important to keep expectations realistic. Mortgage lenders tend to price in anticipated rate changes well in advance, so I don’t expect today’s announcement to trigger any dramatic or immediate drops in mortgage rates across the board.
Who Will Feel the Biggest Impact?
Borrowers on standard variable rates (SVRs) and tracker mortgages are likely to feel the most immediate benefit. Because these products are directly linked to the Bank of England base rate, many of these borrowers should see the full 0.25% reduction reflected in their monthly payments.
For those on fixed-rate mortgages, the impact is less instant. Fixed rates are influenced more by swap rates and longer-term market expectations than by base rate changes alone. However, that doesn’t mean this news isn’t relevant, especially for anyone whose deal is coming to an end.
Why Now Is a Crucial Time to Review Your Mortgage
If your fixed rate is due to expire soon, or if you’re at the early stages of buying a home and looking to secure an Agreement in Principle, now is absolutely the time to speak to a mortgage broker.
Interest rates don’t only move in one direction. While the cut is positive, future increases are always possible, and lenders will respond accordingly. Locking in a competitive deal early can provide certainty and peace of mind, particularly in a market that’s still adjusting.
Five Practical Tips to Help Secure the Best Mortgage Deal in 2026
As we look ahead, preparation is everything. Here are five steps I’d strongly recommend to anyone planning to buy or remortgage next year:
- Improve Your Credit Score Early
Check your credit report and address any issues well in advance. Lenders closely assess credit history when pricing mortgage deals. - Save for a Larger Deposit
The bigger your deposit, the better the rates available to you and the wider your choice of lenders. - Get an Agreement in Principle (AIP)
An AIP strengthens your position when making offers and shows sellers and agents that you’re serious and mortgage-ready. - Organise Your Documentation
Having payslips, bank statements, ID and proof of deposit ready can significantly speed up the mortgage process. - Shop Around and Compare Deals
Don’t settle for the first offer. Using a broker can help you access a wider range of products and ensure you’re getting the best possible deal.
Looking Ahead
The Base Rate cut may not change everything overnight, but it’s a positive step in the right direction. Combined with improving sentiment across the market, it gives buyers and homeowners renewed confidence as we head into the new year.
As always, getting the right advice at the right time can make all the difference.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
