Is now a good time to fix your mortgage or should you wait? Brokers answer as rates continue to fall ahead of expected base rate cut

On Thursday 8 May, the Bank of England will make its next decision about the base rate – with many economists believing the rate will be cut from 4.5% to 4.25%. Further base rate cuts are expected later in the year, with economists at Barclays predicting the base rate could be cut to around 3.5% by the start of 2026.

While the base rate primarily impacts variable rate mortgages, such as trackers and Standard Variable Rates (SVRs), the base rate does have some impact on the direction of fixed-rate mortgages too – though these are primarily affected by long-term interest rate predictors.

In January, the best two-year fixed-rate mortgages for homebuyers were around 4.2%, while the best five-year fixed-rate mortgages were around 4.07%. Now, the equivalent top two and five-year fixed mortgages are 3.88% and 3.83% respectively.

In light of this, we've asked four mortgage brokers for their views on what's next for mortgages and whether you should fix now. If you need bespoke advice, speak with a mortgage broker.

1. Why are fixed-rate mortgages getting cheaper?

David Hollingworth, L&C Mortgages: "The recent wave of uncertainty in global markets has seen a growing expectation that interest rates will fall quicker than previously anticipated. What looked like a decision that could be in the balance in May [re. the base rate] is now being seen as a definite cut by many economists. That has resulted in a drop in the cost of funds for lenders and we're now seeing that feed through to fixed rates."

2. What will happen to fixed-rate deals in the short to medium term?

Aaron Strutt, Trinity Financial: "There is a fair chance the base rate will come down this week, which could lead to even cheaper fixed and tracker rates. With mortgage approvals down and a pretty negative economic outlook, lenders will be doing more to offer better deals and more generous loan sizes."

Nicholas Mendes, John Charcol: "Looking ahead, there's cautious optimism that fixed rates will continue to edge downwards through the rest of 2025, driven by falling swap rates [which mortgages are indirectly linked to] and growing competition among lenders. I'd expect leading two-year fixes to settle closer to 3.5% by the end of the year, with five-year deals not far behind.

"But we're not anticipating a return to the ultra-low rates of recent years unless the base rate drops considerably, which at this stage seems unlikely."

David Hollingworth, L&C Mortgages: "A base rate cut on Thursday has shifted to being a near cert in the eyes of many economists. Assuming that is right, it will help underline the forecast that rates could fall by more this year than anticipated.

"However, it won't necessarily see another step change in the cutting of fixed rates, assuming that the Bank's messaging doesn't encourage the market to think rates could fall even faster. That's because fixed rates will have already priced in the expected May cut."

3. Is now a good time to fix – or should I wait?

David Hollingworth, L&C Mortgages: "We know how rapidly things can change and securing a deal and keeping it under review until completion looks like the right strategy for borrowers. That will protect against any sudden turnaround in rates but still allows the chance to switch again if rates do keep dropping. Borrowers should keep focused on what level of certainty will suit them better rather than just rate."

Aaron Strutt, Trinity Financial: "I suspect rates will get cheaper especially with the current economic conditions. Once you have a mortgage offer it is worth checking your lender's rates and switching to a better deal if they get cheaper."

Nicholas Mendes, John Charcol: "Locking in now gives you certainty and protects you from any short-term volatility. But if you're still months away from needing a new deal and you're comfortable with a bit of risk, waiting might pay off.

"Tracker mortgages are also worth considering, especially for borrowers who want more flexibility or expect rates to come down faster than the market currently predicts. They tend to offer lower fees and fewer penalties, which can be useful if you're thinking about remortgaging again in the near future. But if you value stability and predictability, particularly with a tight budget, a fixed rate still makes a lot of sense."

Will Rhind, Habito: "If your deal's ending in the next six months, securing one of today's rates will give you peace of mind that you've got something locked in. And if rates do drop before your mortgage completes, in many cases you can switch to a better deal, so you're not necessarily stuck.

"If you're on your lender's Standard Variable Rate, one of today's deals will almost certainly save you money compared to what you're paying now."