The Hopps Partnership

Are Mortgage Rates Coming Down?


The property market is a dynamic landscape, influenced by various factors that contribute to the ever-changing mortgage rates. For potential homebuyers or those looking to refinance, the question on everyone’s mind is, “are mortgage rates coming down?” In this blog, we’ll explore the current trends and factors that play a role in determining mortgage rates in the UK.

Understanding the Current Landscape:

As of January 2024, the mortgage rates in England are influenced by a myriad of factors, both domestic and global. The Bank of England’s base rate, economic indicators, inflation rates, and the ongoing impact of geopolitical events all contribute to the ebb and flow of mortgage interest rates.

The Bank of England’s Role:

One of the primary drivers of mortgage rates in England is the Bank of England’s base rate which at the time of writing stands at 5.25%. This rate serves as a benchmark for lending institutions, influencing the interest rates they offer to consumers. A lower base rate typically results in lower mortgage rates, encouraging borrowing and stimulating economic activity. Conversely, a higher base rate can lead to increased mortgage rates, aiming to cool down an overheated economy and reduce inflation.

Economic Indicators and Inflation:

Economic indicators, such as employment rates, GDP growth, and inflation, also play a crucial role in shaping mortgage rates. A robust economy generally results in higher interest rates as lenders adjust to the increased demand for loans. Conversely, economic downturns may prompt central banks to lower interest rates, making borrowing more affordable.

Global Influences:

In our interconnected world, global events can have a significant impact on local mortgage rates. Factors such as international economic trends, geopolitical tensions, and changes in global financial markets can contribute to fluctuations in interest rates.

Recent Trends and Forecasts:

Analysing recent trends can provide insights into the direction of mortgage rates in England. It’s essential to stay informed about market predictions and expert forecasts to make informed decisions about when to secure a mortgage.

Tips for Homebuyers:

At the time of writing, HSBC have offered a market beating ‘two year fixed remortgage rate of 4.49% and a 5 year deal of 3.94%’ (from Sky News: As the current lowest rate on the market, you can expect other lenders to begin to reduce rates. Always speak with a mortgage adviser who will be best placed to guide you in your next venture!


While predicting the exact movement of mortgage rates is challenging, understanding the factors that influence them can help individuals make informed decisions. Keep a close watch on economic indicators, global events, and expert forecasts to gauge the direction of mortgage rates in England. By staying informed and working with financial professionals, you can navigate the waves of the real estate market and secure a mortgage that aligns with your financial goals. Rates do seem to be coming back down and the property market is likely to ‘heat up’ as a result.

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