Do mortgage brokers think it is a good time to lock in a fixed-rate deal?

This is general information – if you're looking for bespoke advice, see how to find a mortgage broker.

1. What will happen to fixed rates in the short term?

Aaron Strutt, Trinity Financial: "It seems likely that mortgage rates will continue to edge down for a while, especially with Bank of England base rate cuts expected [later this year]. The money markets have been pricing in future base rate reductions, which means they can offer cheaper deals."

Nicholas Mendes, John Charcol: "As lenders respond to lower funding costs and increased competition, we could see even more attractive mortgage deals. By the end of 2024, five-year rates could drop to around 3.5%, while two-year rates are expected to be around 3.8%."

Ray Boulger, John Charcol: "The short-term (and medium-term) trend for fixed-rate mortgages is for further falls, but rates are now anticipating more than just the next 0.25% cut [to the base rate], so I expect a temporary lull in the downward trend of the most competitive rates."

2. Is it a good idea to fix now?

David Hollingworth, L&C Mortgages: "The current fixed-rate deals are as good as we've seen in the last couple of years, so it's a much-improved landscape… rather than risk falling on to a high SVR [standard variable rate], it's far better to plump for a deal and then keep it under review."

Ben Thompson, Mortgage Advice Bureau: "Securing a rate between 3 to 4% now is good value, and probably not far off where the market and mortgage rates are likely to settle in their new normal range. The argument therefore is persuasive to act now."

Nicholas Mendes, John Charcol: "The current fixed-rate deals are as good as we've seen in the last couple of years, so it's a much-improved landscape… if you're approaching the last six months of your fixed-rate mortgage, now is the time to start exploring new deals."

3. Are longer fixes worth it?

David Hollingworth, L&C Mortgages: "[We are in] an unusual position where shorter-term rates are undercut by longer-term options. There's typically a premium to be paid for the greater certainty of a longer-term fixed rate, but five-year continues to outstrip two-year. That difference should narrow over time."

Aaron Strutt, Trinity Financial: "While rates are set to continue to get cheaper, some people are concerned about potential future shocks to the economy, so they would rather have long-term payment security... [however,] many 10-year fixed rates are probably too expensive for borrowers to take at the moment. Locking into one of the cheapest 10-year fixes around 4.65% is a bit high unless borrowers have smaller mortgages."

Ray Boulger, John Charcol: "I think with the mortgage options we now have, it is important to consider fixed rates beyond 10 years as well. Most 10-year fixes have ERCs [early repayment charges] for the whole 10 years, which is a major reason why many people won't consider a 10-year fix, but there are 'fixed for life' mortgages which only have ERCs for five years."