Refix or Wait?

Should You Lock in Your Mortgage Rate Before It’s Too Late?

Mortgage rates have been on a rollercoaster these past few years. Homeowners coming to the end of their fixed terms are asking the same question: “Should I lock into a new deal now, or hold out in the hope rates fall further?”

It’s not an easy call. The Bank of England base rate has settled at 4%, a relief compared to the peak of 2023, but no one has a crystal ball. Some experts predict small drops in the next year, while others warn rates could stick around current levels for longer.

So how do you decide what’s best for you?

First, understand your current position

Before thinking about the wider economy, look at your own mortgage:

• When does your current deal end? If it’s within the next six months, decisions are more urgent. Most lenders let you secure a new rate up to six months in advance.

• What’s your loan-to-value (LTV)? The more equity you have, the better the rates you can access. House prices in your area matter here.

• How affordable are your current payments? If your budget is already stretched, stability may matter more than chasing the lowest possible rate.

Why some people choose to refix now

Locking in a new rate today gives you certainty. Even if rates fall slightly in the future, you know exactly what you’ll be paying for the next two, three, or five years.

Benefits of refixing now:

• Protection from sudden market shocks.

• Peace of mind knowing your monthly payments won’t change.

• The ability to plan your finances with confidence.

For households worried about affordability, that stability can outweigh the risk of missing out on a slightly cheaper deal later.

Why others prefer to wait

On the flip side, some borrowers are watching the forecasts and hoping for better deals down the line. If your current mortgage doesn’t end until late 2026, or you can comfortably afford your payments, waiting may give you more flexibility.

Possible benefits of waiting:

• Access to lower rates if the market softens.

• Avoiding early repayment charges if you’re still locked into your existing deal.

• Keeping your options open if your financial circumstances are about to change (promotion, house move, inheritance).

Of course, waiting carries risks. Rates might not fall as quickly as you’d like, or they could even rise again.

The “best of both worlds” approach

One option many borrowers don’t realise is available: you can often secure a new deal up to six months ahead of time and still keep an eye on the market. If rates drop before your deal completes, you can usually switch to the lower offer.

This approach lets you lock in protection while keeping some flexibility. It’s not suitable for every situation, but it’s worth exploring with a mortgage adviser.

Key questions to ask yourself

When deciding whether to refix now or wait, consider:

• How much could your payments increase if you did nothing and rolled onto the lender’s standard variable rate?

• Could you handle higher monthly costs for six months, a year, or longer?

• Do you prioritise peace of mind, or chasing the lowest possible deal?

• What other financial goals (pensions, investments, savings) might be affected by your mortgage costs?

Why personal advice matters more than ever

Headlines can be misleading. One week it’s “rates are falling,” the next it’s “rates could rise again.” The truth is, markets are unpredictable, but your personal circumstances aren’t.

That’s where a mortgage adviser comes in. An adviser can look at your exact situation, your income, property value, and long-term plans, and give tailored guidance on whether to refix now or wait.

The takeaway

There’s no one-size-fits-all answer to the refix question. For some, stability today is worth more than potential savings tomorrow. For others, waiting makes sense if their situation allows it.

What matters most is making an informed choice based on your circumstances, not just market headlines.

For tailored advice, please get in touch.

Barry, The Mortgage NetworkHelping you make the right mortgage decisions with clarity and confidence.