2025 Mortgage Interest Rate Prediction Uk. If you’re looking to remortgage or buy your first home, a cheaper deal can make a big difference to your monthly finances. Higher interest rates dampened consumer sentiment, as it has led to increased borrowing costs, including mortgage rates.

The bank of england lowered rates from 5.25% to 5% — the first cut since march 2020. Based on the various factors considered above, we expect five year fixed mortgage rates of between 4.25% and 4.75% for the better part of 2025.