If you’re waiting for the Bank of England to cut rates before acting, you may already be too late.

Despite the headlines, mortgage rates don’t move one-for-one with the base rate. Most pricing decisions are driven by market expectations, not today’s policy decision. Understanding this can save you real money.

The Big Misconception

Lenders don’t simply borrow from the Bank of England and pass the cost on. They fund mortgages through deposits and wholesale markets, which price loans based on where rates are expected to go, not where they are now.

That’s why mortgage rates often fall before a base rate cut and rise well ahead of hikes.

Fixed vs Tracker: Know the Difference

• Tracker mortgages move directly with the base rate.
• Fixed rates are forward-looking and priced using swap rates, effectively the market’s best guess of future interest rates.

This is why fixed deals can change daily, even when the base rate hasn’t moved.

Why Rates Can Change Overnight

Swap rates react instantly to inflation data, bond markets and global events. Even small movements can trigger lenders to reprice products, sometimes mid-application.

It’s frustrating, but it’s normal.

Inflation Still Rules

As long as inflation stays above target, markets assume rates will stay higher for longer. When inflation cools, swap rates usually fall fast, often weeks before the Bank officially cuts.

So… Should You Wait or Lock In?

There’s no universal answer, but there is a smart framework:

• Prefer certainty? Fix when swap rates dip – not when the base rate finally changes.
• Comfortable with risk? A tracker may outperform if cuts arrive sooner than expected.

Waiting for “confirmation” often means missing the best deals.

How Broadbench Clients Stay Ahead

This is where advice really matters.

At Broadbench, we don’t just secure a rate and walk away. Once your mortgage is agreed, we:

• Monitor the market right up to your start date
• Track lender repricing daily
• Automatically move you to a better deal if one appears

So you benefit from the best available rate, not just the best rate on application day.

Why Use a Broadbench Adviser?

We specialise in mortgages for:

• Business owners and limited company directors
• Contractors (inside and outside IR35)
• PAYE professionals

We help with:

• First-time buyer mortgages
• Home moves
• Remortgages and product transfers
• Buy-to-let lending

You’ll also benefit from:

• Access to specialist and bespoke deals
• Lenders who understand complex income
• Advice designed to save time, money and stress

⭐ Broadbench is proud to be 5-star rated by our clients.

The Bottom Line

The base rate grabs attention, but markets move first.

Acting early, understanding rate drivers, and having an adviser who actively manages your deal can make a meaningful difference to your long-term cost.

If a move or mortgage review is on your radar this year, now is the time to act.

👉 Book your Broadbench appointment today and let us manage the rate risk for you.

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