Whether buying or remortgaging, our experts share the key actions every borrower should take in a fast‑changing mortgage landscape.

Those needing to remortgage or planning to buy a home in the coming months will likely be keeping a close eye on the headlines. As the conflict in the Middle East continues, its economic effects are filtering through to the UK. The partial closure and restricted movement through the Strait of Hormuz has pushed up global oil prices, adding to inflationary pressure across the world economy, and contributing to an increasingly volatile UK mortgage market.

This volatility feeds directly into swap rates - market‑driven forecasts of future interest rates - which underpin the pricing of fixed‑rate mortgages. Since December, the Bank of England has held the base rate at 3.75%. Before the conflict escalated, UK financial markets had been expecting a base‑rate cut this year; however, expectations have reversed, with markets now anticipating the possibility of further increases in 2026 due to renewed inflation risk.

“The fast-paced nature of this war is making the mortgage market particularly unpredictable,” says Josh David, Head of Partnerships at Knight Frank Finance. “Banks have been moving very quickly to reprice, with the products available constantly changing. We’ve seen that market sentiment can be influenced within seconds of frivolous updates being posted on social media and these swings have massive implications in the real world.”

Which mortgage products have been most affected?

Fixed‑rate mortgages have seen steep rises in March, now averaging around or above 5.5%, with some deals withdrawn entirely. “Some lenders, although not a large proportion, have even said they will only offer tracker mortgages for the time being,” says Nathan Bakhbakhi, Head of New Homes at Knight Frank Finance. “Some two‑year fixes are now more expensive than five‑year fixes, something we haven’t seen since the 2022 mini‑budget. Normally you pay a premium for longer certainty, but short‑term volatility is changing that logic.”

Those with tracker mortgages linked directly to the Bank of England base rate have experienced more stability. By contrast, those tied to SONIA (Sterling Overnight Indexed Average) have seen greater day‑to‑day fluctuation, reflecting wider market volatility.

What is the best strategy to navigate a fast-changing mortgage market?

In a rapidly shifting environment, expert advice is crucial. “As brokers, we understand the treasury policies of banks, which means we can often anticipate how they’ll react to shifts in swap rates,” says David. “Depending on their internal hedging strategies, some banks react more slowly, which can leave their rates more competitive for short periods. Because we live and breathe the market, we’re well placed to prepare clients for these changes.”

Having a wide market view can also make a significant difference. “We often submit multiple applications to different lenders simultaneously for clients, to secure the best outcome when rates are moving quickly,” adds Bakhbakhi.

Is now the right time to remortgage?

Even in stable times, it’s recommended to begin the process six months before your current deal expires. This allows borrowers to lock in current rates while retaining the option to switch if rates fall.

“If you’re within six months of your deal ending, it’s crucial to start the process now,” says David. “Given the current volatility, we’d encourage clients to begin conversations even earlier. Depending on your risk profile, and whether you believe the geopolitical situation may stabilise, it may be time to consider locking in a tracker.”

He also notes that checking your Early Repayment Charge (ERC) is essential. “If the ERC is pro‑rata, there are situations where triggering it early to secure a lower rate can make financial sense.”

What should those purchasing a new home consider?

While an Agreement in Principle (AIP) indicates how much a lender may offer, it usually does not lock in a rate. “Currently, there is only one lender with whom you can secure a rate at AIP stage, which we work with,” advises Bakhbakhi. “There are strategies we can use as brokers to guarantee a specific rate ahead of purchase.”

His team specialises in financing new‑build homes - a market with unique advantages. “For new properties, many lenders can offer mortgage rates 12 months in advance, and if rates fall during this time, we can transfer clients to a cheaper product later on.”

If you are considering purchasing or remortgaging a home, get in touch with one of our experienced brokers. We have relationships with over 200 lenders and we’d be happy to walk you through your options.