Mortgage Rates Are Rising: When Can You Lock In Your Next Rate?
TLDR: Mortgage rates have been climbing for a few weeks. If your fixed deal ends in the next 7 months, don't wait it out! You can usually secure your next remortgage rate up to 6 months before your current deal ends. Lock in early and if rates keep rising, you're protected. If they drop instead, we can usually switch you onto the cheaper deal before your new mortgage starts. Talk to us 6.5 - 7 months out and you're covered either way.
You've probably noticed.
Mortgage rates have been climbing again over the last couple of weeks, after a summer where things felt like they were settling down.
Cue the panic emails.
So let's cut through it: here's why it's happening, and, more importantly, what you should actually do about it if you're due to remortgage soon.
Quick version: why are rates up?
Fixed mortgage rates don't necessarily follow the Bank of England's Base Rate directly.
They follow what the market thinks is coming - with things like swap rates playing a big part in how fixed mortgage rates are priced.
Right now, the ongoing conflict in the Middle East has spooked financial markets, pushed up energy prices and increased concerns about inflation staying higher for longer. That has fed through into market rates, and lenders have been repricing their mortgages upwards to match.
Add in inflation running hotter than the Bank of England would like, and you've got the perfect storm for some chunky rate rises.
So no, it's not just you.
Rates really have been moving.
That's the WHY.
Now here's the HOW to navigate it if your current deal is ending soon…
Mortgage Rates Are Rising! So When Can You Lock In Your Next Rate?
The bit that actually matters
Here's the part most people don't know:
You don't have to wait for your current deal to end before locking in your next rate.
With most lenders, we can secure your new remortgage rate up to 6 months before your existing deal finishes.
And once that rate is locked in, it sits there ready for your new mortgage to start when your current deal ends.
No gap. No last-minute scramble. No sitting around hoping rates don't move while you're trying to sort everything out.
This matters more than usual right now, because there's a huge wave of people coming off older fixed rates - some of them at rates below 2%.
Going from that straight into today's market without a plan can be a genuinely rough landing.
With a plan, it can be a lot easier to manage.
Our advice: talk to us around 6 to 7 months before your deal ends.
That gives us time to review your options and get everything sorted so we're ready to lock your rate as soon as you're within that 6-month window, rather than scrambling to catch up afterwards.
Why locking in early can make sense
This is the bit people love once it clicks:
Rates keep rising? You've already locked in. If rates are more expensive by the time you get to completion, you're protected from those increases on the rate you've secured. Sorted.
Rates drop instead? You're still covered. We track the market for you using a tool called Mortgage Metrics. If a cheaper suitable deal becomes available before your new mortgage starts, we can usually switch you onto it.
So you're not necessarily choosing between locking in now and waiting to see what happens.
You can potentially do both.
Lock in early, protect yourself against further rises, and keep an eye out for something better before completion.
That's the clever bit.
What to actually do
If your fixed rate ends in the next 7 months (especially if you're coming off anything under 2%) don't wait for the “your deal is ending” letter to land.
Get in touch now.
We'll look at your options, get everything prepared and, when you're within the relevant window, secure the best suitable rate available at the time.
And if rates move afterwards?
We'll keep an eye on them.
Basically: get ahead of it rather than letting the mortgage market make the decision for you.
Get in touch - let's get this sorted before rates do anything else.
Mortgage rates and lender criteria can change at any time. The availability of products and the ability to switch to a different rate will depend on the lender, the product and your individual circumstances. This article is for general information and isn't personal financial advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.