The risk for mortgage rates in 2026
Recent events in the Middle East have pushed inflation risk back onto the agenda. When inflation becomes a concern again, it puts pressure on the Bank of England to keep interest rates higher for longer, which can lead to increases in mortgage rates, especially fixed-rate deals. Thankfully some lenders, including the High Street names, have recently started to lower fixed rate products. We hope this continues, but nothing is guaranteed.
Why rates have already been rising
Since February 2026, fixed mortgage rates have already moved higher. This is largely due to movements in the swap markets, which lenders rely on when pricing fixed-rate mortgages. When inflation risk increases, swap rates tend to rise quickly, and mortgage rates often follow.
Why acting early matters
This is exactly why it’s so important to start reviewing your mortgage around 6 to 7 months before your current deal ends. Acting early allows you to secure a rate now, giving you certainty that your deal won’t get worse. If rates improve, you can usually switch to a better deal before completion, meaning you’re always in the strongest position.
Understand the basics
- Inflation risk = pressure on interest rates to move higher
- Higher rates = more expensive mortgages
- Markets react quickly, often before headlines catch up
- Acting early gives you control and flexibility
- After big rate increases, lenders will often reduce rates as conditions allow
- CW Mortgages will monitor rates right up to your completion, and always contact you well in advance when your mortgage is due for re-fixing
Helping you achieve the best rate possible
At CW Mortgages, Ian Smith will help you manage your mortgage properly and avoid ending up on higher rates than needed. By tracking the market, reviewing your options early, and always checking the whole of market, you can be confident you’re making the right decision at the right time.
Always start reviewing your remortgage around 6 to 7 months before your current deal ends.
This gives you the best chance of securing the most suitable rate available. It will also confirm if we choose a product transfer, or remortgage to a new lender
- More lender options
- Lock in a rate early
- Switch if rates improve
- Time to prepare properly
- Avoid last-minute pressure
Whole of market mortgage advice across Essex
If you are unsure what the current situation means for your next mortgage selection, it is often worth reviewing your position early rather than waiting until the last minute.
If you need a clearer view of your next mortgage move, speak to Ian Smith at CW Mortgages about your remortgage options.
