Mortgage Rate Update 05/03/26

Please see below table of the current best rates for purchases available across the various mortgage options and loan to values.

A bit like Rachel Reeves’ Spring Statement, rate movements this week have been fairly subtle, just a handful of small tweaks from lenders. Nothing dramatic, but the overall direction is still gently downward, which is exactly what we want to see.

From the Spring Forecast, several points lean towards lower interest rates over the medium term:

• Economic growth downgraded from 1.4% to 1.1% for 2026

• Inflation expected to return to 2% sooner, now projected for the second half of 2026

• Borrowing lower and fiscal headroom higher, which should help reduce market volatility

• Unemployment expected to rise to around 5.3%, easing wage‑driven inflation pressure

However, these forecasts were produced before the escalation of the US/Israel/Iran conflict. Rising oil prices are likely and that could push inflation back up in the short term which would reduce the likelihood of a Bank of England rate cut at the 16 March meeting.

For now, we’d expect lenders to continue making only small, tactical adjustments to pricing until we get closer to the next Bank of England decision.

Purchase mortgages

·        Total change across the board: 0.09% reduction

·        Fixed rate change: 0.09% reduction

• Variable change: No change

• Biggest drop: 2 year fixed at 95% LTV with a drop of 0.05%

• Biggest increase: None

Remortgages

·        Total change across the board: 0.01% decrease

·        Fixed rate change: 0.01% decrease

• Variable change: No change

• Biggest drop: 2 year fixed at 85% LTV with a drop of 0.04%

• Biggest increase: 5 year fixed at 95% LTV with a increase of 0.03%

Please don’t hesitate to contact us if you would like further information on these.

Dan Dawes

Dan Dawes

CeMap Mortgage and Protection Consultant

Book A Call