Locking in your mortgage rate ahead of the Budget – what you need to know

As the government’s Autumn Budget event draws nearer, borrowers may be considering the potential impact any announcements will have on mortgage rates. While speculation grows over what the Chancellor of the Exchequer, Rachel Reeves, will reveal, consumers may be wise to look for ways to protect themselves where possible.

Why should you consider locking in a mortgage rate now?

Although mortgage rates are relatively stable right now, borrowers could see things change as a result of the Budget, which is due to take place on 26th November 2025. Market shifts can and often do occur in response to Budget announcements and, if rates were to rise, borrowers could be negatively impacted. The Bank of England will meet twice before the end of this year to review the base rate. Although inflation has held at 3.8% for the 12 months to September despite expectations that it would rise, it remains at almost twice the target rate of 2%, so another vote to cut the base rate may not materialise until early 2026.

Locking in a mortgage rate now could protect you against any unexpected increases while you retain the option to switch if rates fall.

What’s happening to mortgage rates?

Mortgage rates have been relatively stable over the past few months, with very marginal increases seen in some rates over the last two weeks. The average 2-year fixed mortgage rate across all deals is currently 4.98%, down from 5.03% three months ago. Although rates have steadily fallen since they spiked after Liz Truss and Kwasi Kwarteng's 'mini Budget' in September 2022, stagnant inflation, among other factors, has kept average mortgage rates from changing significantly since early summer.

You will find current mortgage deals in our article 'Best mortgage rates in the UK', which is updated regularly. If you would like to search for the best mortgage rates based on your specific mortgage needs, you can do so using our mortgage rate comparison tool, which provides deals for new mortgages as well as remortgages.

Who should lock in a new mortgage rate and how?

Any adverse effects on mortgage rates could affect borrowers whose mortgage deals are due to expire over the next six months. According to the Financial Conduct Authority (FCA) around 930,000 mortgage holders are due to remortgage between December this year and May 2026. Equally, new mortgage applicants will benefit from locking in a rate now, as lenders will usually hold the rate for 3 to 6 months to allow a property purchase to be completed. You can generally switch to a lower rate during this period so that you don’t miss out if rates do fall.

Existing mortgage holders looking to remortgage will need to choose between a product transfer or remortgage, depending on whether they wish to switch lenders. Product transfer applications are usually simpler as your lender will already have assessed your affordability, but you should always check deals across other lenders in case you are able to secure a better rate. You can read about the pros and cons of each in our article, 'What is a product transfer mortgage and is it better than a remortgage?'. If you go down the route of a product transfer, lenders vary on how far in advance of your mortgage deal expiration you can secure a new rate. We have listed this information in our article "Product transfer windows - when to speak to your lender".

Similarly, new mortgage applicants will need to complete an application to their lender of choice to secure a mortgage rate, which can be held once the application has been approved. Do check how long your lender can keep the rate for you, as this will vary from one lender to the next.

Securing the best mortgage deal

It can be challenging to face the task of sourcing and securing a mortgage deal. The mortgage market consists of thousands of mortgage deals that offer varying packages based on a wide range of qualifying criteria. Some borrowers find it easier to stay with their existing lender or bank for this reason, even though better deals may be within their reach.

Using a mortgage broker to find the best mortgage deal for your circumstances can make this process simpler and ensure that you have explored all of your options before you apply. Mortgage brokers will usually be able to access a considerable amount of deals in the market including those that can only be accessed through an intermediary. If you do not have a mortgage broker, you can source one using the online directory for financial professionals, Vouchedfor*. It lists mortgage brokers, detailing their specialities as well as other customers' reviews of their services. You can, alternatively, source free mortgage advice through the online mortgage broker, Habito*, where the mortgage brokers liaise with customers online and over the phone. Habito provides mortgage advice, guidance and support to broker deals from over 90 lenders.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor