As of tomorrow (31 January) Santander will increase some of its fixed rates by 0.02 percentage points, but is also cutting its five-year fixed deals by up to 0.28 percentage points.
The fluctuations have been ongoing for several weeks after rates began to rise at the end of last year.
However, as they have begun to settle, and ahead of a predicted interest rate cut next week, experts think more mortgage cuts will come.
Average monthly rates have come down since the peaks of July 2023 (Source: Moneyfacts)“Others preferred to tough it out and so some, such as Nationwide, have only recently made any changes, increasing rates yesterday.
Nick Mendes of brokers John Charcol added: “I expect we will see a mixture of reductions and increases but generally speaking reductions should be on the cards now.
The average two-year fixed rate is 5.52 per cent while the average five-year is 5.32 per cent, according to Moneyfacts.
Half a million pensioners are still paying off a mortgage
Read MoreThe Bank of England is widely predicted to cut the base rate by 0.25 percentage points to 4.5 per cent next week.
Aaron Strutt of brokers Trinity Financial said: “There is a mixed picture of rate hikes and price cuts at the moment.
“This should mean fixed rates get cheaper, although there are no guarantees. The lender’s cost of funding mortgages has been coming down, so there has been frustration that fixed rates have increased.”
One of Prime Minister Sir Keir Starmer’s key targets for the Government was to improve living standards – something that would be measured by real household disposable income.
Consulting a mortgage broker is highly recommended, as they can provide tailored advice and access a wider range of products than those available directly to consumers. Brokers can also help borrowers decide whether to secure a rate now and move onto a new rate should the market improve.
Securing a fixed rate now, even if rates feel high compared to previous years, could offer valuable protection against potential further increases in the coming months.
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