Maximise your chances of securing a mortgage rate at the right time

Despite the Bank of England reducing the base rate a few weeks ago, mortgage rates have seen a slight uptick since. Lenders make predictions about where they see interest rates going, and whilst the base rate cut was expected, the Budget and Donald Trump’s election win means they’re now anticipating fewer cuts in 2025. So confusingly, several fixed rate offers were better in the weeks before the base rate cut than in the couple of weeks after.

With so much uncertainty, it’s impossible to know when it’s the best time to secure a new mortgage rate. However, you can maximise your chances of securing a mortgage rate at the right time by acting as early as possible.

Take advantage of your 6-month window of opportunity

Most lenders will accept a mortgage application up to six months before the planned completion date. For the more than 80% of people in the UK on a fixed-rate mortgage*, this often coincides with the end of their initial fixed-rate period. By starting the process early and working with a mortgage broker who continuously monitors market offers, you increase your chances of securing a competitive deal within this six-month window.

For instance, during the second half of 2024, the most favourable rates were typically available in late summer and early autumn. Those with fixed rates due to expire at the end of the year and who secured an initial offer in July may have seen even better rates emerge in August and September, giving them the opportunity to switch to a more attractive deal. With rates now rising again, these borrowers have locked in their rate ahead of the upcoming completion date and won’t be affected by the latest increases. Had they waited until November or December to consider remortgaging, they might have faced a potential increase of hundreds, or even thousands, of pounds over the term of their next mortgage.

At DLi Mortgages, we regularly review the market even after securing your mortgage offer. If rates improve before your completion date, we’ll help you take advantage of the new offers available.

*Source: This is Money

Your home may be repossessed if you do not keep up repayments on your mortgage.

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