Mortgage rates in the UK have been volatile and, for many borrowers, frustratingly high. If you’re remortgaging this year or trying to make buy-to-let numbers work, it can feel like the goalposts move every week.
This guide explains what’s happening right now, why it’s happening, what could realistically change next, and—most importantly—how working with our dedicated mortgage brokers can help you secure the best available deal for your circumstances during a difficult market.
What’s happening to UK mortgage rates right now?
As of mid-March 2026, fixed mortgage rates for many mainstream products are around the 5% level (give or take, depending on lender, product type, fees, and borrower profile). That can seem confusing because the Bank of England base rate is lower than typical fixed mortgage pricing.
The key point is this:
Fixed mortgage pricing doesn’t follow the base rate day-to-day
The base rate matters, but fixed rates are heavily influenced by what lenders pay in the wholesale market to fund and “hedge” fixed lending. That wholesale pricing can move quickly—sometimes faster than the base rate itself.
So even when the base rate is stable, fixed mortgage deals can rise or fall as lenders react to market expectations, risk, and funding costs.
Why are mortgage rates behaving like this?
Think of mortgage rates as being pulled by three big forces:
1) “Higher for longer” uncertainty
Markets are constantly guessing what the Bank of England will do next. When investors become less confident that rates will fall soon, wholesale funding costs rise—and fixed mortgage pricing often follows.
2) Inflation expectations (especially energy-driven shocks)
Even if inflation is trending down overall, sudden concerns (such as energy supply issues or global instability) can raise fears that inflation might stick around. That pushes wholesale pricing up and makes lenders more cautious.
3) Lenders repricing at speed
In a choppy market, lenders can:
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withdraw mortgage products quickly
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relaunch them at different prices
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change criteria and affordability “margins”
This is why the “best deal” can disappear fast—and why timing and execution matter.
An educated guess: how long will rates stay around this level?
No prediction is perfect, but based on how these cycles typically work and the current mix of inflation risk + market caution, here’s a practical, “planning-grade” view:
Likely scenario (most probable)
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Spring to early summer 2026: rates remain roughly around current levels, with periodic spikes and short-lived improvements.
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Second half of 2026: if inflation continues easing and the outlook stabilises, fixed rates may drift down gradually rather than fall sharply.
Less likely (but possible) scenario
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If inflation concerns flare up again, rates could remain elevated into 2027.
The market right now isn’t “broken”—it’s pricing uncertainty. Until uncertainty fades, mortgage pricing stays jumpy.
What would have to happen for mortgage rates to fall?
Mortgage rates tend to fall when wholesale funding costs fall. That usually requires a clearer story in the economy.
The “rates fall” checklist
Rates are more likely to come down if:
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inflation becomes convincingly stable and less reactive to shocks
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wages and service-sector inflation cool without bouncing back
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energy costs calm and the outlook becomes less volatile
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markets regain confidence that base-rate cuts are coming and sustainable
In other words: it’s not just one good month of data—it’s a run of consistency that changes market expectations.
What would have to happen for mortgage rates to rise?
Rates could climb further if markets believe the base rate needs to stay high longer—or rise again.
Common triggers include:
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inflation re-accelerating (especially from energy or supply disruptions)
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stronger-than-expected wage growth keeping inflation “sticky”
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global rates rising and pulling UK wholesale pricing upward
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renewed volatility causing lenders to protect margins and reprice rapidly
This is why some weeks feel like two steps forward, one step back.
Buy-to-let mortgages: why landlords feel the pressure more
Buy-to-let borrowers often experience high-rate environments more intensely because affordability is assessed differently and deal structures can be less forgiving.
Why buy-to-let is more sensitive right now
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Rental coverage tests (ICR): higher pay rates make it harder to meet coverage requirements unless rent is strong.
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Fees matter a lot: many buy-to-let deals use bigger arrangement fees; a “lower rate” isn’t always cheaper overall.
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Portfolio and property type complexity: lender appetite can vary sharply depending on your setup.
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Limited company vs personal name: pricing and criteria can differ, and the “best” lender for one landlord might be the worst for another.
What landlords should do in this market
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price deals on total cost, not headline rate
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review whether a 2-year fix or 5-year fix best fits your strategy
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stress test cashflow for “rates stay higher for longer”
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use broker support to match your portfolio to lender appetite—fast
Remortgaging in 2026: why this year feels brutal
A large volume of borrowers are coming off older fixed deals taken during much lower-rate conditions. That means lots of people are:
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facing meaningful payment changes
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under time pressure to secure a new deal
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trying to decide whether to fix short, fix long, or hold flexibility
The practical remortgage playbook (what works)
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Start early (often 3–6 months before your current deal ends).
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Secure an option—but keep the ability to improve it if pricing shifts.
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Compare rate + fees + incentives as one total package.
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Consider whether a product transfer is simpler—but don’t assume it’s best value.
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Make sure your plan matches your real goal: monthly payment, total cost, certainty, or flexibility.
How our dedicated mortgage brokers help you win in a volatile market
In a stable market, you can shop by headline rate. In a volatile market, the best outcome often comes from speed, structure, and lender fit.
Here’s what our brokers do that improves results:
1) Find the deal that’s actually best for you
Not just “lowest rate”—but best overall cost and best chance of approval based on your profile.
2) Act quickly before deals change
When lenders withdraw products or reprice overnight, timing can mean saving (or losing) thousands over a fixed period.
3) Navigate buy-to-let complexity
Rental coverage, portfolio rules, limited company structures, property types, and lender appetite—these details matter.
4) Reduce friction and uncertainty
We manage the process, keep momentum, and help you avoid dead ends with unsuitable lenders.
5) Build a Plan A and Plan B
Lock something sensible in, then stay agile if the market improves.
Your next step: speak to our mortgage team today
If you’re:
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coming up to a remortgage
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reviewing a buy-to-let purchase or refinance
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worried about affordability, coverage, or lender criteria
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trying to secure the best deal while rates remain high
…our dedicated mortgage brokers can help you compare options and secure the most suitable deal for your situation.
Email: mortgages@netrent.co.uk
Telephone: 01352 721300
General support: support@netrent.co.uk
Disclaimer: NetRent does not provide legal advice. This article represents our understanding of the UK mortgage market at the time of writing and is for general information only. You should seek independent financial and legal advice for your personal circumstances.