When will mortgage rates go down? It’s the question on everyone’s mind—especially first-time buyers and homeowners thinking about remortgaging.

With inflation beginning to ease and another Bank of England base rate decision expected later this month (20th June), many are wondering when meaningful changes will take effect—and how to prepare.

Let’s break down what’s happening, what it means for your mortgage, and how to plan for the months ahead.

What Is the UK Base Rate?

The UK base rate, set by the Bank of England’s Monetary Policy Committee (MPC), directly affects how much you pay for borrowing—including your mortgage.

When the base rate rises, lenders often increase interest rates on variable, tracker, and new fixed-rate mortgages. When it drops, mortgage rates tend to follow (though not always immediately).

What’s Keeping Mortgage Rates High?

The base rate currently sits at 5.25%, unchanged since August 2023. While this may feel high, the purpose has been to reduce inflation—which soared in 2022 and early 2023.

As of April 2024, inflation has dropped to 2.3%, edging closer to the Bank of England’s target of 2%. While this progress is positive, it hasn’t quite met their projections, which may delay the timeline for interest rate cuts.

When Will Mortgage Rates Go Down?

Most analysts are now predicting a base rate cut by August or September 2024, rather than the earlier forecast of June. This means:

  • If you’re on a tracker mortgage, any rate cut could reduce your payments quickly
  • If you’re remortgaging, fixed-rate deals may slowly become more competitive
  • If you’re a first-time buyer, it’s worth preparing now to act when rates improve

That said, any future rate drops are likely to be gradual, not dramatic. Staying informed and being ready to move is key.

 

 

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Should I Wait to Buy or Remortgage?

This will depend entirely on your personal situation. If your current mortgage deal is ending soon—or if you’re a buyer with a deposit ready—it may not be wise to wait and hope for a better deal later.

Mortgage advisors can help you weigh up your options and explore the most competitive products available today, including whether it’s worth locking in a rate now or holding out.

What Could 2025 Look Like?

There’s cautious optimism that mortgage rates in 2025 will continue to ease, especially if inflation continues to fall and the economy stabilises.

However, the pace will likely be slow and steady rather than sudden. The smart approach? Stay mortgage-ready, monitor base rate announcements, and speak with an expert before you make any moves.

Thinking of Remortgaging This Year?

Our mortgage advisors can help you find the best deal for your circumstances—before rates change again.

Explore your remortgage options

Final Thoughts: Stay One Step Ahead

When will mortgage rates go down? Possibly later this year—but not overnight. The best thing you can do right now is:

At OneDome, we’re here to help you stay ahead of the market—whether you’re buying your first home or switching to a better deal.

Your home may be repossessed if you do not keep up repayments on your mortgage.