Writing for This is Money, director of mortgages for MPowered, makes some good points about the likelihood of mortgage interest rates getting significantly better in the coming years. The key comment being:
‘People think that they will continue to fall – potentially back to the super low interest rates we saw prior to 2023. Not only was this not healthy for the housing market, it is also extremely unlikely.’

At present market forecasts suggest the base rate won’t fall again until February next year, when it is set to reduce by 0.25 percentage points. This, the forecasts say, will be followed by a further cut in the summer.
That would see interest rates falling from 4 per cent to 3.5 per cent by this time next year.
The price of fixed mortgages is influenced by Sonia swap rates – the inter-bank lending rates which are based on these same forecasts.
Sonia swaps over two and five years are currently below the Bank of England base rate. This means mortgage rates are already being priced with future interest rate cuts factored in.

At AALTO the consideration is usually whether you need that flexibility firstly. If not, longer term fixed rates appear to be better value once you consider the fee’s involved in re-mortgaging, given that £999 or more is common each time…