Mortgage Rate Predictions 2025: Are Mortgage Rates Going Down?

Mortgage Rate Predictions 2025: Are Rates Going Down?

With the mortgage rate outlook improving, what does it mean for you? Find out the latest predictions for 2025 and the expectations for 2026.

Bank of England's Interest Rate Decision

Following the Bank of England's decision on 6 November to hold interest rates, questions remain about the direction of mortgage rates.

Forecast for Mortgage Rates in 2025

Are mortgage rates expected to decrease? The predictions indicate potential declines, but the situation remains uncertain.

UK Interest Rate Outlook for the Next Five Years

Here is a summary to help you plan for the future, with a focus on the UK interest rate forecast over the coming five years.

Expert Opinion

David Hollingworth at L&C Mortgages stated on 6 November 2025, “Only a couple of months ago it looked as though homeowners should give up on the chance of another base rate cut before the end of the year...

He mentions that recent inflation data has increased the likelihood of an earlier rate cut, though the MPC decided to delay it in December. Meanwhile, the outlook has led to reductions in fixed mortgage rates.

Advice for Homeowners

Get fee-free mortgage advice from L&C, lock in the best rate today, and review it regularly in case rates fall before you need to switch.

Author's summary: Mortgage rate forecasts for 2025 remain uncertain, but recent positive economic data suggest potential rate cuts, influencing fixed-rate mortgage costs in the UK.

HomeOwners Alliance — 2025-11-06