What Can We Expect for UK Mortgages During 2023?

You may have noticed some interesting developments if you’ve been closely monitoring the UK mortgage rates. Even though the Bank of England has recently increased rates, the average mortgage rates have been steadily declining. 

Looking back to December 2021, mortgage rates climbed significantly when the Bank of England began to raise the base rate to around 2.34%. Today, the same product comes with an average rate of 6.76%, which is quite a jump. 

However, what’s really interesting is that despite a suggested forecasted rate of 5.75% in 2024, up from its current 5.25% rate, quite a few lenders have been reducing their rates since the start of August this year. A few have even cut their two and five-year fixed rates roughly between 0.5% and 0.75%.

So, this further leads us to ask: Will other lenders follow suit, and can we look forward to further reductions in mortgage rates to come?

Trimming the fat

So, given the recent interest rate hikes, why are some lenders cutting their rates at what seems like a counter-intuitive move? 

In general, lenders will adjust their mortgage product prices in accordance with the Bank of England’s rates. These adjustments are based on various factors such as gilt yields (the rate of government borrowing) and swap rates. The fall in these money markets has spurred investors to believe that the brakes are being applied to the BoE rate increases.

This, coupled with the housing market slowing down as homeowners battle to keep up with repayments and high mortgage rates, turns potential buyers off from getting on the property ladder, to begin with. In an effort to attract customers, lenders may cut their rates to get them in the door.

Industry lending giants Halifax, NatWest, Barclays Bank and others have all made notable cuts to their fixed-rate products. 

Henry Jordan, Director of Home at Nationwide Building Society, explains this by saying, “These latest changes build on the reductions we made last week for existing customers. With swap rates having fallen from their early July peak and stabilised somewhat, we are now able to reduce rates for new customers.”

What do the latest UK mortgage rates look like, and will they continue to decline in 2023?

Even though the current rate of inflation is on a downward trend, the Bank of England is concerned with the current rate of inflation – 6.4% for July 2023.

As of August, average mortgage rates were as follows:

  • Two-year fixed deal: 6.76%
  • Five-year fixed deal: 6:24%
  • Standard variable rate (SVR): 7.85%

The last time the average two-year fixed rate significantly exceeded the typical five-year rate was back in 2008.

Rates have rapidly climbed in recent months, as displayed here and according to Moneyfacts:

Should I take out a mortgage?

Given this information, the burning question is, should borrowers commit to a long-term fixed-rate deal? The decision becomes even more treacherous when we consider the current landscape where the two-year fixed rate isn’t much higher than the typical five-year rate. Although the interest rates on the average five-year and ten-year fixed rates remain comparatively high, what happens when interest rates decrease – and you’re tied into a lengthy loan period? 

Given these complex criteria, it’s wise to consider talking with a reputable adviser, especially if you’re unsure about the best course of action.

Choice Mortgages will provide you with independent mortgage advice from decades of industry experience. Our friendly and professional team will help you to choose the best Mortgage route for your personal needs. Whether you are a first-time buyer, looking to remortgage your home, or your deal is coming to an end, we are here and ready to assist you in person. 

What to look for in a Mortgage Advisor

Whether you’re a first-time buyer or a seasoned property investor, having a trustworthy and knowledgeable advisor is essential to obtaining a mortgage. With the right help, you can navigate the complex and ever-changing world of mortgages and find the best alternatives and rates to make the best-informed choice. Choosing the right professional should take into account crucial factors. 

Here are essential qualities to look for when choosing a mortgage advisor:

Choosing a mortgage advisor – key qualities

Expertise and Experience 

A good mortgage advisor should thoroughly understand the current mortgage market, including regulations, trends, and all recently available products. Look for an advisor who has been in the industry for several years and has a proven track record of helping clients secure the best mortgages for their needs.


Choosing an advisor who is not tied to any particular lender or financial institution is essential. An independent advisor will have access to a vast range of mortgage products and rates, giving you the best opportunity to find the right mortgage for your financial position without any restrictions or bias.


It’s a two-way street, so take your time and research to find an advisor who is invested in you. A good mortgage advisor should try to get to know you and understand your goals and needs. This level of personal service is vital in helping you to ask questions and feel comfortable with your decisions. 


A good mortgage advisor should be easily relatable, and customer-focused. Look for an advisor who is responsive, approachable, and provides clear and concise information.

Completeness of Service

Having part of the information and being left to Google to find your way around what to do next is of no use. A good mortgage advisor should guide you through the entire mortgage process, from start to finish. Look for an advisor who will complete all the necessary paperwork, keep you updated on the progress of your application, and ensure that the process is smooth by foreseeing any potential challenges along the way.


When looking for a mortgage advisor, it is important to consider their availability. You want an advisor who can organise appointments that work with your schedule and is available to answer questions, provide support when you need it, and not leave you hanging. 

Fee structure

Some mortgage advisors charge fees for their services, while others are compensated by the lenders they work with. Much like the services of a solicitor or an accountant, the professional services of a mortgage advisor need to be taken into account. Make sure you understand the fee structure of the advisor you are considering so that you know what to expect and plan for contingencies.


Look for an advisor who has a good reputation in the industry and is well-regarded by their clients. Read reviews, check ratings, and ask for referrals to ensure you choose a trustworthy advisor.

In conclusion, when choosing a mortgage advisor, it is crucial to consider their expertise, independence, personalisation, communication, completeness of service, availability, fee structure, and reputation. By finding the right mortgage advisor for your needs, you can be confident that you are making an informed and intelligent decision about your mortgage.

At Choice Mortgages, benefit from personalised and efficient services with over 100 years of experience from our team of reliable advisers.

Contact us today for friendly and impartial mortgage guidance

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